Buying DVC resale with a later closing date

[Cony]

Thought I'd get my answers here faster than the agents at 10pm... Currently shopping for DVC resales and I see some listings with messages saying they can't close until a few months in. Does this just prolong the process if I decide to buy the contract? Is there anything I should be wary of with a later closing date? Thank you in advance!

 

[Sandisw]

I just sold one with delayed closing. Went through ROFR in normal timeframe.

The big bonus is you have longer to pay if it’s the right contract.

The only drawback could be that the seller changes their mind and you have to start again.

I have sold 3 with delayed closing now and bought one and in each one they went smoothly.

 

[Cony]

I just sold one with delayed closing. Went through ROFR in normal timeframe.

The big bonus is you have longer to pay if it’s the right contract.

The only drawback could be that the seller changes their mind and you have to start again.

I have sold 3 with delayed closing now and bought one and in each one they went smoothly.

Thank you for your reply! Do you happen to recall how long does it take from closing to getting to use the points? We're thinking of booking a 2021 trip if we do decide to buy but closing isn't until January 2021.

 

[bcuinohio]

We bought a resale recently. We signed papers in early January. The contract stated that the contract could not close until after May 4. We received our final papers in late April. We signed them and overnighted them back after we got a check from the bank. I think the closing agency received them on May 4th and closed the next day. The seller had already returned their paperwork.

It took Disney about a month to send us our e-mail welcoming us to DVC. I checked back a week or so later to see if our points were showing. Our points were there and there were 132 extra points. Apparently the previous owner had 125 banked points from 2019 they didn't get to use. The biggest thing to keep in mind is that if both parties return their paperwork in a timely manner, it should close shortly after that.

 

[sethschroeder]

If you are doing a delayed closing I would want one of a couple things.

An out without penalty or a penalty for the seller if they back out.

On top of that I would also want it to be less than other contracts on the market.

To clarify when I mean a penalty for the seller I mean one where I would get paid not just the broker.

 

[Cony]

We bought a resale recently. We signed papers in early January. The contract stated that the contract could not close until after May 4. We received our final papers in late April. We signed them and overnighted them back after we got a check from the bank. I think the closing agency received them on May 4th and closed the next day. The seller had already returned their paperwork.

It took Disney about a month to send us our e-mail welcoming us to DVC. I checked back a week or so later to see if our points were showing. Our points were there and there were 132 extra points. Apparently the previous owner had 125 banked points from 2019 they didn't get to use. The biggest thing to keep in mind is that if both parties return their paperwork in a timely manner, it should close shortly after that.

Thank you! Good to know they can send the paperwork before the expected closing date!

 

[jlb727]

We're thinking of booking a 2021 trip if we do decide to buy but closing isn't until January 2021.

It depends on when in 2021 you want to go and what resort. Availability might be tricky all next year due to the points backlog after Covid and due to the 50th anniversary. If you’re okay with SSR or you’re booking for much later in the year, then it will be fine! We bought last year and it was about 3 weeks from closing until we could book with our points.

 

[Cony]

It depends on when in 2021 you want to go and what resort. Availability might be tricky all next year due to the points backlog after Covid and due to the 50th anniversary. If you’re okay with SSR or you’re booking for much later in the year, then it will be fine! We bought last year and it was about 3 weeks from closing until we could book with our points.

Thank you! We're planning on buying SSR and booking a big trip in October/November and maybe a small trip in May so hopefully, we'll get the points by February!

 

[sethschroeder]

October/November and maybe a small trip in May so hopefully

I just don't see how this contract could be so unique you would wait until January especially at SSR of all places (its a big resort with tons of contracts). If its cheap then put in some offers on other SSR contracts for the same price point.

When you are talking about October/November that is the expected start of the 50th and you might not find a full week except for 1BRs. Then for May you are talking about trying to book 2-3 months out for a time of the year where every single DVC member who normally had trips during that time has extra points (which means an extra couple nights or an upgrade in accommodations).

Can you share the contract details roughly? Why specifically this contract instead of getting one of the various other offerings likely out there?

 

[Cony]

I just don't see how this contract could be so unique you would wait until January especially at SSR of all places (its a big resort with tons of contracts). If its cheap then put in some offers on other SSR contracts for the same price point.

When you are talking about October/November that is the expected start of the 50th and you might not find a full week except for 1BRs. Then for May you are talking about trying to book 2-3 months out for a time of the year where every single DVC member who normally had trips during that time has extra points (which means an extra couple nights or an upgrade in accommodations).

Can you share the contract details roughly? Why specifically this contract instead of getting one of the various other offerings likely out there?

This contract has the exact number of points and use year that we were looking for with some banked 2019 points and 2020 points still available. It was also at a lower price per point than all I've seen and seller also agreed to pay 2020 dues. The only caveat was closing in January, but we're Canadians and can't travel to the states without having to quarantine this year anyway. We'll have enough points to book a 1 bedroom for both trips at SSR without borrowing if we decide to go in May and October/November but was mainly curious when I can start using my points after closing.

 

[Sandisw]

Thank you for your reply! Do you happen to recall how long does it take from closing to getting to use the points? We're thinking of booking a 2021 trip if we do decide to buy but closing isn't until January 2021.

Right now, things are taking longer than normal..usually about 3 weeks from closing to points...now I think it is more like 5 Weeks.

The contract I sold closed on June 26th...I can still see it in my account so it hasn’t yet been pulled for the new buyer.

 

[sethschroeder]

They should be paying the MFs on 20 as you won't even get the contract until 21. The 19 points you will want to make sure are banked for you as well.

My biggest thing is make sure you have an out or if they pull out you get paid for having passed on the sheer number of contracts we are going to see later this year.