Closing date after a planned reservation that is months away?? Risks?

[fearthisinc]

I tried searching different keywords but didnt come across a page that had what I was looking for.. Maybe I just missed it completely.. Anyway.. I was just curious.. I was looking at a contract that fits what we are looking for but the available close date is after a planned reservation that the current owner has... So the available close date is not until December 2018.. My question is for those who know or who went through this process.. If I submit an offer and it is accepted, what will I have to guarantee that the sale goes through come December 2018.. I mean that is a long time, about 7 months that the current owner could change their mind.. I feel as though you are not guaranteed anything until after the closing... Do all the other steps go through and you wait on the actual deed transfer? Or does the whole process start after the available closing date (ROFR, etc)?

 

[Bing Showei]

what will I have to guarantee that the sale goes through come December 2018.

Absolutely nothing. With an average resale closing date of only three months away, there are no guarantees. Sellers (and buyers, to be fair) have backed out. The big difference is if a buyer backs out, they forfeit the deposit to the seller’s benefit. If a seller backs out, oh well. Brokers won’t go after them and it would be cost prohibitive for you to explore breach-of-contract options.

I would suggest looking for another contract. Too much risk with such an extended closing.

ETA: process can’t proceed past estoppel as the points ultimately can’t be confirmed via estoppel until use has been completed. Your deposit will be held for 8 months, essentially.

 

[kboo]

With something that far out, and a deposit held for 8 months, I would use that as a reason to get a lower price.

 

[Matty B13]

I would keep looking, another contract is bound to come up with all the points and UY you are looking for. The seller has no skin in the game, so they can walk away at anytime, even during the closing process.

 

[fearthisinc]

Thanks.. Thats what I figured.. I am looking at these contracts and see some that have 2019 closing dates.. I don't even see the point in listing it..

 

[Jerry5788]

With something that far out, and a deposit held for 8 months, I would use that as a reason to get a lower price.

A lower price gives seller more of an incentive to back out especially if prices increase

 

[icc2515]

Keep looking, something will pop up. I put an offer in on a Poly with a ressy about a month out. Not really a big deal as it was only a month. Seller went on the vacation and decided that they had so much fun that they did not want to sell after all. Zero penalty to them.

 

[Bing Showei]

Thanks.. Thats what I figured.. I am looking at these contracts and see some that have 2019 closing dates.. I don't even see the point in listing it..

Because the seller has nothing to lose.

Suppose they list it, find a buyer and in 6 months, the market shoots up, they can bail.

Now imagine the market tanks like we’ve never seen before and DVC prices dive with it. Buyer is on the hook to either honor the agreed upon price, or risk losing their deposit.

With zero consequence to sellers for reneging, listing today is a win/win.

 

[Jerry5788]

Because the seller has nothing to lose.

Suppose they list it, find a buyer and in 6 months, the market shoots up, they can bail.

Now imagine the market tanks like we’ve never seen before and DVC prices dive with it. Buyer is on the hook to either honor the agreed upon price, or risk losing their deposit.

With zero consequence to sellers for reneging, listing today is a win/win.

Wow never thought about it that way as a hedge. Can only wish the brokers talk and ban those people from selling again

 

[miTnosnhoJ]

Let’s say you were an existing owner. You already had your points for your next 1 or two vacations but you could say the need for larger accommodations in 2-3 years. In this case I MIGHT consider buying a contract with a close date that was out in the future for several months.
But if I were buying for the first time, I would be looking for points that I can begin to use sooner rather than later.

Having said that, if it was the perfect contract, I might follow this contract on the broker’s site, with the expectation that it will not sell quickly. When it gets much closer to the close date, I would make a low-ball offer. They might take it since it has been on the market for so long.

 

[gharter]

Another vote to keep looking. In the time frame you are looking, I would expect that another similar contract would become available. Unless you really want that contract, I would be reluctant to put down a deposit that could be lost if you change your mind or find a better contract while wiating.