Back out of resale purchase?

[magicaldisney]

Has anyone backed out of a resale purchase? After having an offer accepted and passing ROFR we sent in our money. We have been waiting a month now for the sellers to do their part with no luck. Wondering if it is an easy process to back out of the purchase?

 

[z28wiz]

What does your contract state?

 

[Dean]

Has anyone backed out of a resale purchase? After having an offer accepted and passing ROFR we sent in our money. We have been waiting a month now for the sellers to do their part with no luck. Wondering if it is an easy process to back out of the purchase?

Your past your 10 day period. After that it comes down to whether the terms of the contract have been executed and whether the proper notices were included in the original contract. Your contract likely has a close by date and MAY have a separate extension of an addition 1 or 2 months. If the terms of the contract have been violated, you can back out without recourse. Same goes if the proper notices were not included in the contract though I'd be they were if it's one of the usual suspects.

 

[JimMIA]

You're probably not there yet, as Dean pointed out. You're past the 10-day recision period under Florida law, so your cancellation rights would be governed by your sales contract. The terms should be clearly stated.

Generally, the close-by date (which is the effective period of the contract) is about 60 days after you clear ROFR and the actual closing papers go to you. However, sometimes additional periods are added to the contract for whatever reason (primarily to prevent people from canceling if things go slowly).

Once the close-by date passes (including any extensions), the contract has expired and you can cancel and get your money back.

A month without returning the paperwork is unusual. I'd contact the broker and ask what the problem is. The broker should be aware of any problems, but if they're not they need to call the seller and find out what's wrong.

But read your contract first, so you know what your rights are.

 

[magicaldisney]

Thanks everyone. I did read the contract and yes it is the typical 60 days with the extension as the closing company sees fit. I don't know if that "extension" includes the seller just not responding and sending in the papers. I've also contacted the broker and either I'm getting the run around or she is. Being told the papers have been express mailed, but the title company never receives anything. We'll probably have to keep trudging on with this.

 

[GrnMtnMan]

I don't know if that "extension" includes the seller just not responding and sending in the papers.

I asked a question very similar to this when my sellers were taking too long and never got a straight answer. The title agent told the sales broker to answer and the sales broker never answered. Here's my story.

In one email (about another subject), the title agent insinuated that this extension clause was mainly to there in case there was hiccup by the title agent....like someone was out sick or an unusual number of closings come in at once.

You'd think that they had an official policy document that outline reasonable uses of this extension clause, but if there is one they didn't offer it up to me or even provide broad circumstances where they would invoke it. It's a little ridiculous that the title agent can hold you money indefinitely without providing some guidance as to when a buyer can declare 'contract breached' and get his/her money back. The title company has so much control and leeway as to when to close a transaction that they really ought to hold themselves to a higher standard and produce policy/guidelines when a buyer requests such information.

 

[Dean]

Thanks everyone. I did read the contract and yes it is the typical 60 days with the extension as the closing company sees fit. I don't know if that "extension" includes the seller just not responding and sending in the papers. I've also contacted the broker and either I'm getting the run around or she is. Being told the papers have been express mailed, but the title company never receives anything. We'll probably have to keep trudging on with this.

I don't think an open ended extension is common place. Typically they are either 30 or 60 day extensions on top of the initial usually 60 day closing period. Make sure you talk to the title company and the sales agent so you avoid some of the he said/she said issues. For others reading, the extension is not required or can be modified.

 

[JimMIA]

I did read the contract and yes it is the typical 60 days with the extension as the closing company sees fit.

I agree with Dean, this is certainly a most atypical wording and certainly not anything I would ever agree to! I can see a provision to account for holidays falling on the closing date, etc -- but "...as the closing company sees fit" is just plain ridiculous.

And I can't imagine an open-ended lockup of a buyer where the seller doesn't -- or CAN'T -- close.

If you want to post the specific language in your contract, maybe one of the lawyers on the board can tell you what it actually means.

*****
You should also know that, in Florida, real estate brokers and closing agents are tightly regulated by the Florida Department of Business and Professional Regulation. If you get into a dispute with either the realtor or the closing agent over this (regardless of contract language), I would not hesitate to contact DBPR right away. They can be VERY helpful.

If you need to contact DBPR, use this link to their official page. If you Google DBPR all you'll get is a bunch of spam pages from myfloridalicense.spam

 

[magicaldisney]

No No No, I'M SO SORRY!!! I didn't mean it literally said "as they see fit". I really am sorry for that confusion (but I am chuckling slightly to myself!!) What it says is...... the title company can extend the closing date an additional 60 days for more time to provide the closing. What I meant by "as they see fit" is where it then states that the extension of the closing date can only be determined by the title company, not the buyer or seller.

Now, with that mess straightened out (chuckling to myself again), I spoke with the agent. My contract is states the closing needs to be within 90 days with the addendum adding the extra 60 days. So basically this could possibly go on for roughly five months. The seller has been contacted asking for a tracking number for the documents he supposedly overnighted. Seller says he does not have a tracking number and doesn't have any idea where the package would be. They are going to try to get him to do it again.

Sorry again for any confusion. I was just trying to find out if we were completely stuck in this process for the full 5 months and yes it sounds like we are. I also wanted to know if it gets down to that (we're already at almost 3 months) how easy is it to just bail out or is it a long drawn out process.

Thanks again for all your help, advice and support!!

 

[JimMIA]

My contract is states the closing needs to be within 90 days with the addendum adding the extra 60 days. So basically this could possibly go on for roughly five months.

Wow. That is a) amazing, and b) incredibly unreasonable. There is no reason in the world why a timeshare resale closing should take 90 days -- much less 150!

The seller has been contacted asking for a tracking number for the documents he supposedly overnighted. Seller says he does not have a tracking number and doesn't have any idea where the package would be. They are going to try to get him to do it again.

That's ridiculous.

I was just trying to find out if we were completely stuck in this process for the full 5 months and yes it sounds like we are. I also wanted to know if it gets down to that (we're already at almost 3 months) how easy is it to just bail out or is it a long drawn out process.

I'm a little confused. In your first post, you said you've been waiting for a month. Now, you say it's almost 90 days. I'm guessing that the original 90 days you're talking about is from the date of your offer (or the acceptance thereof). If the 90 days runs from when you cleared ROFR, I'm afraid you may only be one month in, and will have to wait two more months.

Whenever the 90 days is up, I would take the position that if the seller hadn't submitted their paperwork, it is totally unreasonable for the title company to extend the close-by date.

If there is some reason why an extension is legitimately needed to complete the transaction, that's one thing. But this seller has done NOTHING -- they don't deserve any extra consideration. And you certainly don't deserve to be penalized for the seller's inaction and/or the closing agent's lack of initiative or ability.

I have a nagging suspicion that this seller is incapable of closing because of some legal or financial problem -- divorce, bankruptcy, unpaid dues, no cash to pay IN because they financed and are underwater on their loan, etc. Could be anything, but none of those are your problem and you shouldn't pay the price for the seller's problems.

At 90 days, I'd be asking for my money back, and if the closing agent didn't immediately comply, I would file a complaint against the closing agent with DBPR.

 

[Cruelladeville]

I agree, 90 days is enough. Tell your agent now that you are backing out of the deal, and you want your money returned. The seller has problems and your money could be tied up for several more months if you try to ride this out.

 

[Dean]

I think 60 days with an additional 60 is reasonable. 90 should not have needed an extension. I'd ask to cancel if things aren't fixed within say 5 business days.

 

[magicaldisney]

I'm a little confused. In your first post, you said you've been waiting for a month. Now, you say it's almost 90 days. I'm guessing that the original 90 days you're talking about is from the date of your offer (or the acceptance thereof). If the 90 days runs from when you cleared ROFR, I'm afraid you may only be one month in, and will have to wait two more months.

In one week we will be at 90 days from the accepted offer and we have now passed a 30 day mark that they have had our documents and MONEY. Does that make sense? If I am reading everything right, I have to wait 90 days from the date we passed ROFR?

 

[magicaldisney]

This is exactly what I'm worried about.

 

[Dean]

In one week we will be at 90 days from the accepted offer and we have now passed a 30 day mark that they have had our documents and MONEY. Does that make sense? If I am reading everything right, I have to wait 90 days from the date we passed ROFR?

It may be 90 days from when you signed the contract.

 

[DizBub]

Am I the only one who finds all this utterly ridiculous? It doesn't take half this time to purchase "real" property, like a real house worth 50 Xs more than these timeshares.

Being a resale buyer currently in ROFR and waiting, reading these threads does not make me feel all warm and fuzzy. Or confident. Buying direct and adding on direct was so fast and easy............if it weren't so expensive (in comparison to resale)

What's with these title companies anyway? I'll bet Disney owns them and this is their way of punishing resale buyers. No, that's what ROFR is for.

Sorry for venting. I would love to be supportive but kinda feel like we are twisting in the wind ourselves and it's really just been about 3 weeks for us so far. At least when you buy real property there is a definate timetable/schedule and they can't/won't/don't do that for this type of situation.

OP, hope all goes well for you and things go quicker than expected.

 

[JimMIA]

It may be 90 days from when you signed the contract.

Yes, that's the confusing part. Are the deadlines you're talking about contained in the formal offer paperwork you signed, or are they in a sales contract you completed in preparation for closing (i.e. after ROFR approval) ? Or is there just one contract?

In contracts I've executed, I believe the close-by date was part of the original offer and acceptance. In that context, 90 days is a bit long, but not crazy, because it anticipates a 30 day delay in ROFR rreview. 90 days AFTER ROFR, IMHO, is unreasonable. Normally deals close within a couple of weeks after ROFR approval. But if you signed that, you're bound by it.

Obviously, the starting date of that 90 day period is key.

 

[magicaldisney]

Yes, that's the confusing part. Are the deadlines you're talking about contained in the formal offer paperwork you signed, or are they in a sales contract you completed in preparation for closing (i.e. after ROFR approval) ? Or is there just one contract?

In contracts I've executed, I believe the close-by date was part of the original offer and acceptance. In that context, 90 days is a bit long, but not crazy, because it anticipates a 30 day delay in ROFR rreview. 90 days AFTER ROFR, IMHO, is unreasonable. Normally deals close within a couple of weeks after ROFR approval. But if you signed that, you're bound by it.

Obviously, the starting date of that 90 day period is key.

As per contract....Closing is within 90 days within the effective date. Then the date of 12/13/11 is mentioned which is the date it went to ROFR. (Then we have the separate addendum for an additional 60 days) So, basically

I've learned a lot through all of this that's for sure!! My red flag should have been when it took us roughly a months time from getting our offer accepted to getting that offer to ROFR because the sellers weren't getting the initial paperwork in.

We'll see what happens after he's been sold to send the paperwork in again.

For others that might be reading this......Dean/Jim, a question for you....when putting the offer in do we as buyers have the right to say we want it closed within a certain time period? Or does the title company decide that and that's that.? Do we have to sign an addendum for an extension? Is the time frame put in the addendum negotiable or simply decided on by the title company? AND if we have the option to chose the time frames, does the title company have to agree to that or can they say nope, sorry it's our time frame or none?

 

[Dean]

For others that might be reading this......Dean/Jim, a question for you....when putting the offer in do we as buyers have the right to say we want it closed within a certain time period? Or does the title company decide that and that's that.? Do we have to sign an addendum for an extension? Is the time frame put in the addendum negotiable or simply decided on by the title company? AND if we have the option to chose the time frames, does the title company have to agree to that or can they say nope, sorry it's our time frame or none?

Yes, you can include your choice of closing as part of the contract and you do not have to sign an extension. You can even specify closing company if you want. From what I'm told, a broker must present any offer but they'll try to steer you in such a way to avoid pitfalls (generally) and to maximize the chance of completing the deal. You can go the other way too, specific a later closing which sellers sometimes do so they can complete a given trip. My general impression is that your situation is an outlier. I think 90 days (+/- 30 day ext) OR 60 days plus a 60 day extension would be more reasonable terms. I think the date you signed will be the effective date.

Regardless, if you want to back out at this point for whatever reason, tell the broker that and why. I would wait until you pass the 90 day mark though but you're about there. It sounds like the seller is holding things up for some reason, maybe they're taking a trip using points from the contract. If this doses complete, better compare points to what you expect. Are they overseas? as that creates some issues.

 

[magicaldisney]

Great info for the future Dean....thanks. Yes, they are oversees so we did expect minor delays in mail time, but this seems to be more than that. Not being able to provide a tracking number is more than mail time delays. Apparently, there are more transaction fees incurred oversees and the broker wonders if that is the problem???

We are locked in to the 90 days. We'll just have to see what they say about the 60 extension and what circumstances they include to make that extension come into play.