Anyone backing out?

[JimMIA]

Part of the problem is, you aren't buying from Disney.

This is the critical part that many people who are currently in the purchase process miss.

They are mad at Disney saying Disney "changed my deal" in the middle of the transaction. But Disney DID NOT do that. Disney did not change one iota of their transaction. They had NO deal with Disney -- their transaction was with an existing owner through a realtor.

It's too bad Disney handled this so clumsily -- and we all feel bad for those who got hurt -- but Disney can't change a transaction they are not party to.

*****
One other side note that may have been covered elsewhere.

I've seen a post or two where the purchaser is upset because if their transaction had closed when it was supposed to, they would not have been affected. Those buyers should know that if their seller missed the "close-by" date, they can walk away without risking their deposit.

The contract terminates on the close-by date, and they can walk away with no penalty if they want to. Not saying they should necessarily -- but they do have that option in that one circumstance where the closing did not occur in a timely manner through no fault of theirs.

 

[southerngirl528]

I really think other than a possible small blip because of all the hubbub, that resales will stay pretty strong price wise. I could be wrong, but it sure hasn't happened yet. And look at the retail prices.

 

[Dean]

It absolutely does. I see both sides of the fence on this really. I can't go into a jewelry store with $500 and expect to walk out with the same quality ring as someone who walked in with $5000.

However, when I bought my resale, I was under the understanding that I was a equal DVC member. Had that changed mid process, I'd have backed out. I am currently in ROFR and if it were my first contract, I'd back out.

For people signing resale after April 4, they have the knowledge and option of knowing what they are losing access to. If it still makes sense to them, they can then move forward knowing the facts. That's my only issue is that Disney really should have grandfathered everyone in the process in.

But didn't you understand going in that there were already resale restrictions in place? And further did you not know they could change or add to those if they so chose? IF so you knew going in there were two classes of members already and things could change and if not, you didn't do your due diligence. In your ring example it's more likely getting the same ring at a pawn shop then complaining to the retail store if there were an issue with it. DVC is just another nice timeshare, we don't have any say or control over what Disney does nor should we expect them to. I now some want to "hold they to a higher standard" but IMO, that standard is simply unrealistic.

 

[Dean]

This is the critical part that many people who are currently in the purchase process miss.

They are mad at Disney saying Disney "changed my deal" in the middle of the transaction. But Disney DID NOT do that. Disney did not change one iota of their transaction. They had NO deal with Disney -- their transaction was with an existing owner through a realtor.

It's too bad Disney handled this so clumsily -- and we all feel bad for those who got hurt -- but Disney can't change a transaction they are not party to.

*****
One other side note that may have been covered elsewhere.

I've seen a post or two where the purchaser is upset because if their transaction had closed when it was supposed to, they would not have been affected. Those buyers should know that if their seller missed the "close-by" date, they can walk away without risking their deposit.

The contract terminates on the close-by date, and they can walk away with no penalty if they want to. Not saying they should necessarily -- but they do have that option in that one circumstance where the closing did not occur in a timely manner through no fault of theirs.

Jim, I'm not sure they handled it poorly. They could have delayed the cutoff date but I don't see making it effective immediately as a problem.

 

[Paula Sedley-Burke]

I really think other than a possible small blip because of all the hubbub, that resales will stay pretty strong price wise. I could be wrong, but it sure hasn't happened yet. And look at the retail prices.

I agree. People don't stop buying used cars because it now doesn't come with a free maintenance deal etc. People buy older houses. There are always perks to buying used and perks to buying direct. But ultimately it's about the object / thing you are buying a home, car or vacation.

 

[JimMIA]

Jim, I'm not sure they handled it poorly. They could have delayed the cutoff date but I don't see making it effective immediately as a problem.

I think they've been pretty ham-handed. Typical flawless DVC execution; they really look like the amateurs they are.

I know they don't owe anybody anything because they are not party to the transactions, but if I were them, I'd grandfather anyone who had been submitted for ROFR by 4/4. It costs them nothing and would make them look good (or at least, less bad). They way it is now it looks -- as someone perfectly described it -- "spiteful."

 

[Coamfo]

Define your 'back out'. Most of us have deposits on the line already. Not so easy to back out. There is only a small window where you can back out and get all your funds returned.

I'm still within my 10 days. I just signed last Thursday.

 

[dankil13]

This is the critical part that many people who are currently in the purchase process miss.

They are mad at Disney saying Disney "changed my deal" in the middle of the transaction. But Disney DID NOT do that. Disney did not change one iota of their transaction. They had NO deal with Disney -- their transaction was with an existing owner through a realtor.

It's too bad Disney handled this so clumsily -- and we all feel bad for those who got hurt -- but Disney can't change a transaction they are not party to.

.

While our transaction is with the reseller, Disney is involved in the transaction thru the ROFR process. They very much control how much we pay thru resales by using this tool (in addition to the time it takes to close).

More importantly though is the second part - how poorly they handled it and communicated it.

 

[gluestickgirl]

While our transaction is with the reseller, Disney is involved in the transaction thru the ROFR process. They very much control how much we pay thru resales by using this tool (in addition to the time it takes to close).

More importantly though is the second part - how poorly they handled it and communicated it.

This. We put in an offer on 2/7. It's 2 months later. We've passed ROFR but don't have estoppel and closing papers. The ball is in their court and we can't close without them. If they had been speedier, we'd have closed before the deadline.

 

[Coamfo]

But didn't you understand going in that there were already resale restrictions in place? And further did you not know they could change or add to those if they so chose? IF so you knew going in there were two classes of members already and things could change and if not, you didn't do your due diligence. In your ring example it's more likely getting the same ring at a pawn shop then complaining to the retail store if there were an issue with it. DVC is just another nice timeshare, we don't have any say or control over what Disney does nor should we expect them to. I now some want to "hold they to a higher standard" but IMO, that standard is simply unrealistic.

I realized what resale lost as of 2011. When we bought resale I talked to Bernard, my original DVC guide about all my options. The lost perks from 2011 did not justify paying direct prices. We won't use those lost perks anyway. Sure Bernard tried to persuade me to buy direct, but I was assured that buying resale would not mean I was treated differently. And he was right, since I'm grandfathered in.

I'm not upset at the loss of perks, as I knew those can always come and go, but I would be bothered if I were treated like a second class member.

 

[JimMIA]

While our transaction is with the reseller, Disney is involved in the transaction thru the ROFR process. They very much control how much we pay thru resales by using this tool...

No they're not in control of the price. They are only in control of who ends up being the buyer -- you or them. They play no part in the price negotiation, and in fact, I suspect it would be illegal for them to do so.

This. We put in an offer on 2/7. It's 2 months later. We've passed ROFR but don't have estoppel and closing papers. The ball is in their court and we can't close without them. If they had been speedier, we'd have closed before the deadline.

Are you past your "close-by" date through no fault of yours? If so, walk away and get your deposit back.

 

[gluestickgirl]

Are you past your "close-by" date through no fault of yours? If so, walk away and get your deposit back.

unfortunately, we aren't. and we are currently undecided on what we'll end up doing.

 

[dankil13]

No they're not in control of the price. They are only in control of who ends up being the buyer -- you or them. They play no part in the price negotiation, and in fact, I suspect it would be illegal for them to do so. Are you past your "close-by" date through no fault of yours? If so, walk away and get your deposit back.

We put our offer in based on what has been getting through ROFR. I decided it wasn't worth a few hundred dollars in savings to negotiate a price of a contract that Disney would be more inclined to take as we are hoping to use our points when we go in the fall. Without the ROFR process I would have negotiated a lower price (closer to the range of what Disney has been taking).

 

[JimMIA]

This. We put in an offer on 2/7. It's 2 months later. We've passed ROFR but don't have estoppel and closing papers. The ball is in their court and we can't close without them. If they had been speedier, we'd have closed before the deadline.

I'm confused. What is the holdup? Why don't you have the paperwork yet? Has the seller not sent in their paperwork, or has the broker not sent it yet? If so, you may have an out.

 

[JimMIA]

We put our offer in based on what has been getting through ROFR. I decided it wasn't worth a few hundred dollars in savings to negotiate a price of a contract that Disney would be more inclined to take as we are hoping to use our points when we go in the fall. Without the ROFR process I would have negotiated a lower price (closer to the range of what Disney has been taking).

Right, you considered what was reported on the ROFR thread and probably the advice of your broker in making your offer -- and made the right decision IMHO by not trying to squeeze every penny out of the deal. If there had been no such thing as ROFR, you might well have paid less.

But that is not Disney controlling the price you paid. You negotiated the price with the seller. Disney played no direct role.

 

[DisDadDVC]

While our transaction is with the reseller, Disney is involved in the transaction thru the ROFR process. They very much control how much we pay thru resales by using this tool (in addition to the time it takes to close).

More importantly though is the second part - how poorly they handled it and communicated it.

No they are not. That is not what ROFR is.

 

[gluestickgirl]

I'm confused. What is the holdup? Why don't you have the paperwork yet? Has the seller not sent in their paperwork, or has the broker not sent it yet? If so, you may have an out.

Broker quoted 20-30 days for estoppel. Yesterday was 30. We're asking a lot of questions and waiting on answers.

 

[JimMIA]

Broker quoted 20-30 days for estoppel. Yesterday was 30. We're asking a lot of questions and waiting on answers.

Ahhh. Disney does the estoppel letter, so that's out of the control of the broker and seller.

Not saying that canceling is in your interest, but I would sure read all the fine print and know what all of your options are. Bottom line, the core of what you bought has not changed, so closing may still be the best thing. But if you have some legitimate "out" and are unsure whether you want to go through with the purchase, my advice would be the same as to someone within their rescission period: if you're not sure, get out and reconsider while you can.

 

[mynameisnobody]

And this just in:

DVC Resale Market

IMPORTANT UPDATE:
In a letter from Disney e-mailed late this afternoon:

This note is to inform you that anyone with a contract that was received by Disney Vacation Club by the end of the day on April 3, will be grandfathered in to have the same access to Membership Extras that are available to others who have purchased DVC memberships from sources other than Disney since March 21, 2011. (Note: Those members who purchased from sources other than DVC after March 21, 2011 may not use their points for the “Disney Collection” (select Disney Resort Hotels, Disney Cruise Line and Adventures by Disney) and the “Concierge Collection” resorts. As a reminder, the Membership Extras are incidental benefits offered by DVC and are subject to change.)

 

[KAT4DISNEY]

Ahhh. Disney does the estoppel letter, so that's out of the control of the broker and seller.

Not saying that canceling is in your interest, but I would sure read all the fine print and know what all of your options are. Bottom line, the core of what you bought has not changed, so closing may still be the best thing. But if you have some legitimate "out" and are unsure whether you want to go through with the purchase, my advice would be the same as to someone within their rescission period: if you're not sure, get out and reconsider while you can.

I think it was somewhere around 1-2 months ago that Disney suddenly notified the brokers that they would not send the estoppel until the date of closing on the contract. And since closing dates have been written up to allow for extenuating circumstances they were often later than most were ready to close. I think some did still get their estoppel prior but it was definitely slowed down from people reporting here.