Backing out of a DVC Resale

[Mistuhchia]

With everything going on, it has made me seriously reconsider my DVC resale and thinking that I might need the cash on hand in case of job loss, unexpected situations, etc.

Can you back out of the contract once it passes ROFR? Assuming I would lose my $1500 deposit

 

[Sandisw]

Contact your broker. You would love your deposit for sure, but could face other consequences too,

 

[CraigInPA]

I can't imagine you aren't the first person in this situation, and your broker may be able to provide you some guidance on this issue. But, no matter what they say, your signed agreement of sale governs the transaction. You need to read your agreement of sale. I imagine that you'll lose the deposit, but may be subject to other civil actions and/or penalties.

 

[Deb & Bill]

I had two buyers back out of a small contract that I had offered for sale after ROFR. They lost their deposit (I got half of both).

 

[CmdrThor]

You may owe the seller's agent the commission in addition to losing your deposit. We just received our ROFR waiver a few minutes ago, still plan on moving forward.

 

[Deb & Bill]

You may owe the seller's agent the commission in addition to losing your deposit. We just received our ROFR waiver a few minutes ago, still plan on moving forward.

The selling company also gets half of the deposit. So they aren't left out there hanging without any compensation.

 

[CmdrThor]

The selling company also gets half of the deposit. So they aren't left out there hanging without any compensation.

Here's what our contract says. Sounds like "treble the deposit" means the buyer could owe up to two times the deposit in addition to losing the deposit itself in order to cover the full commission and transaction fees.

Upon Buyer default, Seller may terminate this contract and Buyer shall forfeit the deposit. Escrow agent shall deduct all expenses including escrow fees and title exam fees, and pay the remainder of deposit to Seller, which shall be Seller's sole and exclusive remedy. Buyer also agrees upon Buyer default to pay Broker liquidated damages of treble the deposit, except that the Broker’s portion shall not exceed the full commission and/or transaction fee.

 

[collections]

I just called Fidelity and asked that same question. I just received my papers from the title company yesterday.
I was told I that I would lose my deposit plus their commission and the $195 fee.

The broker also told me I was not the first person to call with that question.

 

[Sandisw]

I just called Fidelity and asked that same question. I just received my papers from the title company yesterday.
I was told I that I would lose my deposit plus their commission and the $195 fee.

The broker also told me I was not the first person to call with that question.

I think you are correct, I agreed to a contract sale last week, and buyer was supposed to send in payers yesterday..they were traveling.

Still waiting and so far, haven’t given any updates to broker. So, I do wonder if they are rethinking the decision to jump in right now, which, I do understand if that is what they need to do

 

[fixerupper]

I'm in ROFR and it has crossed my mind, more because I am going to be buying a lot of points I won't be able to use because of the closure and everyone moving existing points filling things up, which will get worse as things progress. It was iffy before, but I don't have a chance now. I don't plan to back out but I guess I won't be as sad if we lose it. But I think we are paying a very fair price and that is unlikely. I am also having a more existential moment of Disney is very minor in the scope of a pandemic. If the timeline had fallen differently, I would have held off on my offer, but I won't back out because of it.

 

[E2ME2]

With everything going on, it has made me seriously reconsider my DVC resale and thinking that I might need the cash on hand in case of job loss, unexpected situations, etc.

Can you back out of the contract once it passes ROFR? Assuming I would lose my $1500 deposit

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 ??

 

[CmdrThor]

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 ??

I’ve heard First American is very slow. We chose to go with Jeffrey Sweet instead for closing.

 

[Great3]

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

 

[Sandisw]

With everything going on, it has made me seriously reconsider my DVC resale and thinking that I might need the cash on hand in case of job loss, unexpected situations, etc.

Can you back out of the contract once it passes ROFR? Assuming I would lose my $1500 deposit

I am going to add that if you really are worried about the financial strain, and you can absorb the loss of deposit and whatever fees you are charged, I say do it,

Given what is currently happening, this is not just a change of mind. While I am sure the seller will be upset and disappointed, you should not take on a financial commitment that could cause you more harm down the road,

 

[Mistuhchia]

Thanks for the feedback. I can definitely weather the costs, but similar to fixerupper, I'm just more bummed that I wouldn't be able to use the points now.

Plus with the forfeiture of the deposit + commissions, I'd have to at least save $2k on a subsequent purchase, which may or may not even be feasible

 

[Cyberc1978]

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 ??

1st american is very very slow - I have only used them once and hopefully I wont use them again. On one of my contracts I got seller to pay closing with the term that they didn't use 1st American.

 

[DebbieB]

1st american is very very slow - I have only used them once and hopefully I wont use them again. On one of my contracts I got seller to pay closing with the term that they didn't use 1st American.

First American in Las Vegas? They were quick on my VGC resale in January. They filed the deed and closed everything the same day they got my final check.

 

[Cyberc1978]

First American in Las Vegas? They were quick on my VGC resale in January. They filed the deed and closed everything the same day they got my final check.

Their webpage is firstam.com

 

[rqd]

I didn't see any mention of a force majeure clause. Is that because it's not used in these contracts or because that option has passed?

 

[Cyberc1978]

I didn't see any mention of a force majeure clause. Is that because it's not used in these contracts or because that option has passed?

I dont think there is any force majeure clause in the contract to buy DVC. Either you go through with the deal or you dont. If you default after the 10 days you are on the hook for the deposit.