Any FROR from international seller resale contract?

[emchen]

Sure, there were two contracts each with 190 points. I don't remember the exact amount but one contract had about 90 banked points. Both contracts had all 2019 and all 2020 points available. We offered the asking price of $195 per point. The sellers were in Canada.

Sorry to hear that.

Unusual number of points, 190. Usually see 160 then 200 for VGC. Price was quite high considering unstripped contracts seem to go for $185-195 pp. Pure speculation, but I bet they had some one or two VIPs on the waitlist for exactly that number of points.

 

[luvdisneyland]

So based on that scenario, if I offered you $100/pt. the reseller takes their commission - we’ll say $10, taxes of $15, you’d get $75/pt in your pocket.

So using the same podcast, that would suggest that BRV sold for $88 the seller would’ve only received $66/pt in their pocket.

This is a little different from what jscottnc said on his closing costs. I think his scenario put the concern of extra costs to the buyers at closing. Yours puts a concern of extra fees on the sellers potentially not getting as much as they’re looking forin their pocket

I Just did a quick search for reseller sites and seller fees and it doesn’t look like any of them disclose of pulling that amount out for taxes. I think I understand the withholding, but more curious as to how it’s carried out. The costs have to be absorbed somewhere..either the buyer, seller, or from Uncle Sam.

The sellers are responsible for the 15% withholding. The buyer pays nothing. The seller can then apply to get a full or partial refund and get the withholding returned to them.

 

[emchen]

I just closed on an SSR contract today for 200 pts with an international seller, 2 couples owned the contract together. All in all, it took an additional 4+ weeks to get to closing because of the combination of FIRPTA and having to get notary service from US embassy or consulate. Each couple had appointments 1 week apart AND there was an error regarding maintenance fee responsibility early on so the contract had to be re-written.

I wasn't in a rush, so it was just fascinating to see the additional hoops that has to be jumped through by the int'l seller. I see why DVC Admin are extremely eager to waive ROFR on these. A tidbit that my escrow manager mentioned was that there is a third party service that specializes in int'l time-share contracts and that they were managing the FIRPTA and notary part in Japan. Tack the cost of that onto the seller's responsibility and my guess is it is at least another -8%.

I wonder if one of the reasons they took the VGC contracts is that our Northern neighbors have quicker access to US notaries?

 

[TP3]

I just closed on an SSR contract today for 200 pts with an international seller, 2 couples owned the contract together. All in all, it took an additional 4+ weeks to get to closing because of the combination of FIRPTA and having to get notary service from US embassy or consulate. Each couple had appointments 1 week apart AND there was an error regarding maintenance fee responsibility early on so the contract had to be re-written.

I wasn't in a rush, so it was just fascinating to see the additional hoops that has to be jumped through by the int'l seller. I see why DVC Admin are extremely eager to waive ROFR on these. A tidbit that my escrow manager mentioned was that there is a third party service that specializes in int'l time-share contracts and that they were managing the FIRPTA and notary part in Japan. Tack the cost of that onto the seller's responsibility and my guess is it is at least another -8%.

I wonder if one of the reasons they took the VGC contracts is that our Northern neighbors have quicker access to US notaries?

Congratulations on closing your contract!

This is our first experience purchasing resale so we aren't very well versed in the process but I had wondered if the sellers being in Canada was a factor in Disney's decision to buy them back.

 

[Jason_79]

We just passed ROFR this past Tuesday on a Saratoga Springs contract from an international seller. Sent to Disney on September 16/2019.

In addition to purchasing from an international seller, we are international buyers (Canada) as well! I think the odds were always in our favour!

I have to assume this International-International sale is rare. We are hoping there are not any unexpected hiccups along the way!

 

[Wakey]

All the main resale agent closing companies withhold the 15% to pay it, and in fact usually put the international seller in contact with an expert- for a fee of course- so they can claim it back.
I just think time is money with DVC and they can't be bothered with this.
I'd say if you are buying, and you don't want it taken, buy from an international seller- the only downside being it 'may' take a little longer.