Anyone made it through (or not made it through) ROFR recently? - Section IV

[MFMont]

Hi everyone! I am new to this site and have pored over every page of this discussion. Just wanted to vent.

I know we got a decent deal, all things considered, but we are upset that the sellers are somewhat unethical. We decided on BWV b/c of the location (originally we wanted AKV).

So we found a contract that seemed pretty good, 200 pts Feb UY. The listing was confirmed by Fidelity as 238 points, some banked from 2010 and the rest from 2011. We offered a price, the sellers accepted.

When the contract gets to us, we find out there are only 208 points.

Ok, so we sign.

Now that the contract passes ROFR, we are notified that there are only 169 points.

That's 69 points less than the original listing!! What is going on????

So I'm miffed. It is really uncool. We asked that the seller pay for closing costs, but now I'm thinking it is not enough. I want them to pay for 2011 maintenance fees now too.

What will happen if I back out? Do I have any recourse? I don't blame the broker, but I do think the seller is a jerk, and we should back out and they will get an even worse deal going forward b/c they are trying to "pull the wool" over our eyes. Can the seller possibly use points while we are waiting to close?

I don't trust the seller anymore and want to know what I may lose by backing out.

If I am not mistaken, once dvd goes into the estopel process, the points are locked until after closing.

 

[dbs1228]

Also, why would the points change from the date of contract sigining and just before ROFR/now???? That means the seller can continue to use points until we close, right?

We don't really care that our contract is pre-March 20th (we started the process in Feb and signed the contract in early March).

The sellers could have used the points while in ROFR sounds like other things may have happened also??? There is another post out on the boards with a similar situation. I would ask the sellers to pay MF and closing cost but you do also have the right to walk away. If it is a really good price/contract you may want to stick with it if by looking at the ROFR thread it is just an OK contract then you may want to walk and find something better. Good luck.

 

[a742246]

Do you think that the sellers used the points or listed it not knowing what they were doing?

 

[KingRichard]

I would hold the broker responsible. That is why they are getting paid! Ask them what is going on as they will lose their commission when you back out.

 

[JWG]

Not to hijack this thread, but this is the 2nd Fidelity contract to not align. I'm surprised that a bigger name would allow some of these gaps to happen. Maybe just a coincidence.

 

[saintstickets]

So we found a contract that seemed pretty good, 200 pts Feb UY. The listing was confirmed by Fidelity as 238 points, some banked from 2010 and the rest from 2011. We offered a price, the sellers accepted.

When the contract gets to us, we find out there are only 208 points.

Now that the contract passes ROFR, we are notified that there are only 169 points.

What will happen if I back out? Do I have any recourse? I don't blame the broker, but I do think the seller is a jerk, and we should back out and they will get an even worse deal going forward b/c they are trying to "pull the wool" over our eyes. Can the seller possibly use points while we are waiting to close?

I don't trust the seller anymore and want to know what I may lose by backing out.

I wonder the same thing. What happens when the closing contract does not match up with what you purchased? If, as a buyer, you then back out, do you have any obligation (i.e. - your deposit)?

 

[ORD2KOA]

Also, why would the points change from the date of contract sigining and just before ROFR/now???? That means the seller can continue to use points until we close, right?

We don't really care that our contract is pre-March 20th (we started the process in Feb and signed the contract in early March).

They would change because there's nothing to stop a seller from using their points. Nobody's going to stop them because they still own the points until the property is closed. Should they have notified the listing company? Absolutely.

But I think that the bottom line for you is whether or not the contract you are buying, meaning the actual annual contract not including any banked points, is what you want.

We're in the process of selling (just waiting for the buyer to get the closing paperwork and check sent in) and in ROFR as a buyer. As a seller, I haven't touched my DVC account since listing. As a buyer, I didn't really think about banked points when I was deciding what contract I wanted to buy. In some instances, I actually considered banked points kind of a hassle because they needed to be booked quickly, etc.

I don't know how not getting banked points would affect your escrow contract, but I think it's possible that you could lose your escrow funds if you back out. I don't know the escrow laws, but if the banked points are considered sort of a bonus, (like someone deciding at the last minute not to leave you their couch when you buy their house), it is altogether possible that you would lose your escrow deposit if you don't follow through. And if you don't you will definitely be cast into the new ownership category if you don't go through with the contract.

Basically, what I'm thinking is that you have some questions to ask yourself beyond whether or not you like the seller. Did you think the contract for x-number of points was a good deal, or did you only think it was a good deal because of the banked/available points? What is your broker saying about how would effect your escrow deposit? And do you care if you're in the new DVC ownership category?

This is difficult and a definite PITA for you. But I do know from experience that you have to try to take the emotional element out of any real estate transaction. Try to take your distrust of the seller off the table and see if the purchase still makes sense.

Whatever you decide, good luck. This has got to be driving you nuts.

 

[tammymacb]

My guess is that if there needs to be a substantial change made to the contract, you can walk and get your money back. You bought a contract with XX amount of points. Now, you're getting less. For the same amount of money.

I know for a fact when I found out that my sellers wanted to change my closing date to 4 months after the agreed upon date, I was able to cancel and get a refund. They were the ones who altered the contract specifics.

 

[dbs1228]

Do you think that the sellers used the points or listed it not knowing what they were doing?

When it went to ROFR Fidelity "said" there was 208 points, (according to OP) and since there was a discrepancy from the original listing of 238 points I would have to hope they would pull an account activity directly from dvc to verify the points. If this was done it means someone used the points while the contract was in ROFR. I am wondering if it was done????

 

[MFMont]

Not to hijack this thread, but this is the 2nd Fidelity contract to not align. I'm surprised that a bigger name would allow some of these gaps to happen. Maybe just a coincidence.

Sounds like the law of averages. They do the most contracts don't they?

 

[MFMont]

They would change because there's nothing to stop a seller from using their points. Nobody's going to stop them because they still own the points until the property is closed. Should they have notified the listing company? Absolutely.

But I think that the bottom line for you is whether or not the contract you are buying, meaning the actual annual contract not including any banked points, is what you want.

We're in the process of selling (just waiting for the buyer to get the closing paperwork and check sent in) and in ROFR as a buyer. As a seller, I haven't touched my DVC account since listing. As a buyer, I didn't really think about banked points when I was deciding what contract I wanted to buy. In some instances, I actually considered banked points kind of a hassle because they needed to be booked quickly, etc.

I don't know how not getting banked points would affect your escrow contract, but I think it's possible that you could lose your escrow funds if you back out. I don't know the escrow laws, but if the banked points are considered sort of a bonus, (like someone deciding at the last minute not to leave you their couch when you buy their house), it is altogether possible that you would lose your escrow deposit if you don't follow through. And if you don't you will definitely be cast into the new ownership category if you don't go through with the contract.

Basically, what I'm thinking is that you have some questions to ask yourself beyond whether or not you like the seller. Did you think the contract for x-number of points was a good deal, or did you only think it was a good deal because of the banked/available points? What is your broker saying about how would effect your escrow deposit? And do you care if you're in the new DVC ownership category?

This is difficult and a definite PITA for you. But I do know from experience that you have to try to take the emotional element out of any real estate transaction. Try to take your distrust of the seller off the table and see if the purchase still makes sense.

Whatever you decide, good luck. This has got to be driving you nuts.

Untrue,

According to the contract I have in front of me, any descepancy on the sellers part, and the buyer can back out without penalty. Also if there is a discrepancy, the listing agent can go after the commision if the buyer backs out because of a discrepancy on the sellers end.

Not sure how banked points are a hassle. if they are not important, don't use them. I can't see how you could look at them as a hassle when they can easily be rented for $6 - $10 PPT even with little life left on them.

All that being said the contract has very little in the way of consequences in the favor of the buyer. To bad the seller does not have to put down penalty money for their shady activity.

I would offer less and redo, but I do understand the aingst about the changes. I would offer less then plead my case to DVD in hopes they wave the fact that everything had to be resubmitted. Unfortunatly it sounds like your odds on that happening are slim. Hate to hear this happened to you.

 

[JimMIA]

The issues surrounding deals gone bad are already being discussed in depth (by the same posters) on this thread: http://www.disboards.com/showthread.php?t=2685975

Off-topic discussions on this thread (either idle personal chit-chat, or discussion of extraneous issues) make it very difficult for people interested in ROFR activity to find the info they come to this thread seeking.

I also suspect off-topic noise also makes Donald is #1's job of keeping up with the news much more difficult.

 

[suebeelin]

So we signed an addendum to the contract so that the sellers will pay for closing costs. Does that mean now the contract is considered post 3/20?
If I back out I only lose $200. And the seller will have to resell his contract to someone else post 3/20.

Thank you for confirming the seller is unethical and used point WHILE the contract was in ROFR. I was confused as to how the number of points could change between signing the contract and ROFR. But 39 points? Really?

I'd like to be a member, hopefully sooner rather than later. But then again it looks like prices are dropping at the moment, with two incredible deals (relatively speaking) on Fidelity's website (namely the $77 BLT and the $49 BWV listings). So, even if I lose $200, I'd only lose $1 per point at the end of the day which will be made up with a post 3/20 contract.

I'd prefer a pre-3/20 contract but am happy enough to have a post 3/20 contract if the price is even better!

Thank you all. And it's sad that there are so many unethical Disney sellers out there -- not saying they're the majority, and possibly many are in financial distress and thus the sale of their timeshare, but their distress does not justify fraud and dishonesty. A contract is a contract, after all, and the terms agreed upon and accepted. To then go ahead and try to get away with "better terms" after the fact is pathetic. So I'm a bit mad.

 

[nursegirl]

We passed ROFR on 3/28! (Submitted 3/11)

 

[monami7]

We finally closed today....now the wait for when I can book...did I mention our flight leaves in 38 days and we don't have a room?

 

[ORD2KOA]

We finally closed today....now the wait for when I can book...did I mention our flight leaves in 38 days and we don't have a room?

Yay!! And OMG!!! Good luck!

 

[monami7]

I am a mess over the whole thing! 3 1/2 weeks from ROFR to cloe and then the week wait to be in the system! i never thought it would take that long! On both of our other contracts it took a week to close and 3 or 4 days to get in the system. I have called a few times and they have SSR and OKW 1 brs open still. We may have to move or pay for a night or two who knows. I need a vacation after the stress though!

 

[mikeandkarla]

We finally closed today....now the wait for when I can book...did I mention our flight leaves in 38 days and we don't have a room?

That's awesome!

 

[mikeandkarla]

We finally closed today....now the wait for when I can book...did I mention our flight leaves in 38 days and we don't have a room?

That's awesome!

 

[lowe@massed.net]

We passed ROFR on 3/28! (Submitted 3/11)

Congrat's, nursegirl! Which resort?