Backing out of a DVC Resale

[Sandisw]

What about getting to ROFR but not having signed the final contract, yet? Do we still lose our deposit if we back out? I’ve been back and forth on it and don’t know what to do because both of us got laid off.

ByFlorida law, you have 10 days to cancel once you sign the documents. So, if you are past that point, you are on the hook for the deposit and possibly more if you back out

 

[Dracula]

What about getting to ROFR but not having signed the final contract, yet? Do we still lose our deposit if we back out? I’ve been back and forth on it and don’t know what to do because both of us got laid off.

If you already signed the contract and paid the deposit, I am afraid you are out of luck - the final contract has no bearing. Most contracts have specific clauses for buyer default - that is, failing to execute the final contract. With that being said, perhaps you can reach out to your broker and try to negotiate a way out.

 

[Punkrockbebop]

If you already signed the contract and paid the deposit, I am afraid you are out of luck - the final contract has no bearing. Most contracts have specific clauses for buyer default - that is, failing to execute the final contract. With that being said, perhaps you can reach out to your broker and try to negotiate a way out.

Thanks. It’s so hard to know what to do, because we have no knowledge of what the future holds.

 

[Sandisw]

Thanks. It’s so hard to know what to do, because we have no knowledge of what the future holds.

Well, I will just add that for the seller, the sooner you back out, the faster they can get it back on the market,

Thats not to say you should do anything quickly if you aren’t sure, but just something to add to your thought process.

 

[Punkrockbebop]

Well, I will just add that for the seller, the sooner you back out, the faster they can get it back on the market,

Thats not to say you should do anything quickly if you aren’t sure, but just something to add to your thought process.

Thank you Sandi. I appreciate your support. I’m going to start looking into this tomorrow.

 

[Networth]

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[Deploraboo]

Saw a 25 point contract go up In last 2 weeks. Really. 25 points?

 

[Dracula]

Saw a 25 point contract go up In last 2 weeks. Really. 25 points?

These used to be popular because one could get the DVC member benefits for just a token investment.

 

[Deploraboo]

That a distress signal you think? Seems to me yes?

 

[Matty B13]

Saw a 25 point contract go up In last 2 weeks. Really. 25 points?

A lot of owners also, liked to add on small contracts that they could pay with cash back before DVC started charging higher closing costs. I forget when DVC started charging a lot more for closings, but I believe that it has only been the last couple of years, maybe 2017?????

 

[ELMC]

Saw a 25 point contract go up In last 2 weeks. Really. 25 points?

That a distress signal you think? Seems to me yes?

I think that the logical conclusion that can be drawn from this listing is that someone who owns a 25 point contract no longer wishes to own it. I'm not sure how much more information we can glean from it.

 

[bobbiwoz]

We bought for cash when we had the money, and we have probably 10 25-50 point contracts in our membership! We used to get a DVC tote bag and no closing costs with most of those purchases!

 

[ziravan]

I DO think there’s gonna be a 10-20% minimum loss in value, similar or worse than 2008.

If I were buying, I’d hold off 3-6 months. I don’t know that I’d bail out of a contract for that reason alone, but I understand it for those with newfound economic concerns.

Many owners are going to have those concerns too. The market is going to flood with contracts soon.

If I were selling, I’d either reconsider completely, or push to sell now before prices/buying sentiment contract even more. I’d drop the price 10% right now and hope that’s enough to find a buyer who can follow through to closing.

My guess is that, by the time you can get to a closing table now, things are going to get much worse economically and more buyers are going to reconsider their positions.

Many more buyers.

 

[Wacat]

We backed out a year ago. It was a tough decision because I felt obligated to the seller and I had signed the contract. But like others have said, it didn’t make sense. I realized I had to separate your emotions from the numbers. Do not feel bad about it at all.

As far as the 25 point contract, that is how we started with DVC, smaller point contracts that we could pay off. You can split the purchase up into three payments over 90 days onto a credit card. That made it possible for us to pay cash with no finance charges (even more so if you use the Disney Visa card). Now we also can sell off contracts if we ever need to decrease our number of points.

 

[we"reofftoneverland]

I can't say that the same thought hasn't crossed my mind. Amazing how quickly circumstances can change. I was so excited to here that I passed ROFR on 3/6, but by 3/10 world circumstances were making an impact. I don't think I will pursue backing out, as I got a really good price, and I have to hold out hope for the future beyond COVID-19.
I'm still wondering, however, why it's taking so long to hear from the title company. Fidelity told me ROFR was waived on 3/6, but I have not herad anything from 1st American yet ??

Everything I have read about first American is that they are awful to deal with

 

[Perelandra]

You can always back up, but it gonna cost you. Depending on your contract, % deposit, and how much you paid originally, you may stand to lose less if go thru the closing and turnaround and resale yourself, with paying the sales commission (might be less than your deposit). Unlikely, but possible. Also possible that resale prices tank during this time period, so it's still a risk.

Only you can decide whether you can weather a personal financial downturn, what the best decision is. If it was me, I would go thru with it, since I signed the contract, it's just the right thing to do, plus I am sure if I lost my job, I can live thru it. But the right thing to do isn't always the best thing to do financially, but listen to your own heart, and decide what is best for you and your family, after you find out exactly what financial lost you will take that is spelt out in your contract if you decide to back out.

Good Luck,
Great3

I had the pain of having to decide to finish out an amazing deal that I had made on a loaded contract or back out after my pay was slashed around 78% since the pandemic occurred. I agree that contracts are important, but the contract signed has a provision for default. The seller should have never signed the contract, if they wouldn't accept the default provision. So, while my heart is broken by this, and I hope the seller can turn it very soon to someone else, and my deposit was a help to them, do not feel ashamed if you find yourself with a significant pay cut in this once in lifetime pandemic, and can no longer afford this. The contract allows for default.

 

[Perelandra]

I DO think there’s gonna be a 10-20% minimum loss in value, similar or worse than 2008.

If I were buying, I’d hold off 3-6 months. I don’t know that I’d bail out of a contract for that reason alone, but I understand it for those with newfound economic concerns.

Many owners are going to have those concerns too. The market is going to flood with contracts soon.

If I were selling, I’d either reconsider completely, or push to sell now before prices/buying sentiment contract even more. I’d drop the price 10% right now and hope that’s enough to find a buyer who can follow through to closing.

My guess is that, by the time you can get to a closing table now, things are going to get much worse economically and more buyers are going to reconsider their positions.

Many more buyers.

Finally, someone who seems to be in touch with reality.

 

[Great3]

I had the pain of having to decide to finish out an amazing deal that I had made on a loaded contract or back out after my pay was slashed around 78% since the pandemic occurred. I agree that contracts are important, but the contract signed has a provision for default. The seller should have never signed the contract, if they wouldn't accept the default provision. So, while my heart is broken by this, and I hope the seller can turn it very soon to someone else, and my deposit was a help to them, do not feel ashamed if you find yourself with a significant pay cut in this once in lifetime pandemic, and can no longer afford this. The contract allows for default.

I agree, if you can no longer afford it, cancelling is the right thing to do for your family. I am definitely not advocating to hold on at any cost, that's not right advice either. I am just saying if you can for sure handle the financials, cancelling in hopes of getting a better deal down the line is not right. If I was a seller, I would never pursue further any buyer if they cancel.

I am glad you bring up this point, please consider your affordability.

Great3

 

[ziravan]

I agree, if you can no longer afford it, cancelling is the right thing to do for your family. I am definitely not advocating to hold on at any cost, that's not right advice either. I am just saying if you can for sure handle the financials, cancelling in hopes of getting a better deal down the line is not right. If I was a seller, I would never pursue further any buyer if they cancel.

I am glad you bring up this point, please consider your affordability.

Great3

I agree with this in theory. A contract is a contract, it’s giving your word on a deal. If life happens that’s one thing. Backing out just to get a better deal is another, and wrong.

That said, any deal struck today is gonna take 2 months to close, and if we are still in this mess then, as seems likely, the market might seriously contract between now and closing. If you agree to sell AKV for $115 now and that buyer is seeing $90 contracts on the market in 2 months, ethical or not, you’re going to see some buyers bail and start over.

I’m not saying that’s right. I’m saying a prudent seller needs to consider that as a potential reality. This isn’t a typical downturn. We’re in uncharted territory.

 

[TheGecko]

I agree with this in theory. A contract is a contract, it’s giving your word on a deal. If life happens that’s one thing. Backing out just to get a better deal is another, and wrong.

That said, any deal struck today is gonna take 2 months to close, and if we are still in this mess then, as seems likely, the market might seriously contract between now and closing. If you agree to sell AKV for $115 now and that buyer is seeing $90 contracts on the market in 2 months, ethical or not, you’re going to see some buyers bail and start over.

I’m not saying that’s right. I’m saying a prudent seller needs to consider that as a potential reality. This isn’t a typical downturn. We’re in uncharted territory.

If the buyer utilizes the out provision within the contract, there is nothing wrong with that option since it is part of the deal. The buyer will most likely lose their deposit, and maybe have other penalties. The seller will have to find another new buyer, and they may have to lower their price the next go round to match the current market.