Contract in "verification"? What?

[disneylovinfamilyof6]

We just closed on our first DVC contract on Wednesday (purchased resale), and we are also in the process of trying to buy a 2nd contract.

The 2nd contract's process has been completely different from the first. It's a different company than the one we used for the first (am I allowed to say the name here?). We signed this contract on 3/31 and the seller signed it on 4/1. It has supposedly been in some process called "verification" ever since. The broker and his company claim "it's in verification" whenever we inquire on the status. The title company is also claiming the same "it's in verification". It has not even been submitted for ROFR (I've asked, and they were clear on this). They claim that the "verification" is them waiting for Disney to provide estoppel, but this is completely opposite from how things were done on our first contract. I thought you had to pass ROFR before estoppel, or at least that is the order of how things happened on the first contract.

Has anyone dealt with this "verification" process before even going to ROFR? The title company says this process can take up to 30 days.

 

[CarolMN]

If you want to mention a business, you can - but post a link to it. If the link appears with any portion of it ********** out, then the business is in the DIS site's filter and should not be discussed here. See this this STICKY thread for more info on that.

IIRC, some brokers ask for an estoppel as a first step before sending the contract to ROFR. Not surprised that it is taking a while if that is the case. Disney has been notoriously slow responding to things like this. After ROFR, the company will probably go through estoppel again just before they close.

The next time you call, ask about the steps in their process - you might tell them about your first process and ask why their's is different.

Hope things break through for you soon. I know it's hard to wait!

 

[Coamfo]

I have bought two resales (technically second one is in ROFR) with two different companies, and never heard of this. With both, after they were signed they went straight to ROFR. I know there is one company who has told me they have a new title company that is closing WITHOUT the estoppel at all. I don't know enough about the process to comment other than to say that sounds scary. If you are with that company, maybe they "verify" the points are there prior to ROFR and then close without the estoppel?

 

[SleighBelle]

Your situation sounds similar to mine. The seller and I signed contracts on 12/21 and then after a long "verification" stage, I was in ROFR on 4/7. (That's 108 painful days.)
When I tried to get timing estimates from them in January and February, they never gave me a straight answer. It was infuriating. It still is.

Also, the company I am dealing with did the estoppel step prior to ROFR. Hopefully that helps!

 

[disneylovinfamilyof6]

If you want to mention a business, you can - but post a link to it. If the link appears with any portion of it ********** out, then the business is in the DIS site's filter and should not be discussed here. See this this STICKY thread for more info on that.

IIRC, some brokers ask for an estoppel as a first step before sending the contract to ROFR. Not surprised that it is taking a while if that is the case. Disney has been notoriously slow responding to things like this. After ROFR, the company will probably go through estoppel again just before they close.

The next time you call, ask about the steps in their process - you might tell them about your first process and ask why their's is different.

Hope things break through for you soon. I know it's hard to wait!

Thanks. I did explain to them the process that we went through with the first contract and how this one differed. They just said "this is how we do things". It's good to hear that this does happen sometimes. I guess I was getting nervous that they are shady. They've now got a large chunk of my money in holding which always makes me leary.

 

[disneylovinfamilyof6]

Your situation sounds similar to mine. The seller and I signed contracts on 12/21 and then after a long "verification" stage, I was in ROFR on 4/7. (That's 108 painful days.)
When I tried to get timing estimates from them in January and February, they never gave me a straight answer. It was infuriating. It still is.

Also, the company I am dealing with did the estoppel step prior to ROFR. Hopefully that helps!

Omg! 108 days?!?!? I would be really upset. We have points I'm going to need to bank before August. The title company claims this "verification" process is usually 30ish days.

Thank you for sharing that had a similar experience with the front end estoppel and "verification". Do you mind if I pm you to ask a question?

 

[SleighBelle]

No, I don't mind. Feel free to PM me. Happy to share what I have been through so hopefully others can avoid my mistake!

 

[disneylovinfamilyof6]

I have bought two resales (technically second one is in ROFR) with two different companies, and never heard of this. With both, after they were signed they went straight to ROFR. I know there is one company who has told me they have a new title company that is closing WITHOUT the estoppel at all. I don't know enough about the process to comment other than to say that sounds scary. If you are with that company, maybe they "verify" the points are there prior to ROFR and then close without the estoppel?

See the first company we used for our first contract was fast and amazing. The day after both parties signed the contract and we made our deposit they submitted it ROFR. To put it in perspective: 1st contract we signed contract and sent money 3/3, submitted to ROFR 3/4, passed 3/29, signed closing docs 4/13 and fed ex'ed back same day for overnight delivery, wired balance 4/14 (this week).


This 2nd contract we signed and sent a large deposit (it's a large contract) 3/31, it was signed by seller 4/1, and here we still sit in "verification" 4/15. I guess I'm mostly worried that they are crooks and have stolen our money.

 

[disneynutz]

IMO it makes sense to verify the status of the selling account before even writing up the contract. The broker and buyer need to know if there is a loan, how many points, UY, point status, and dues status.

Bill

 

[disneylovinfamilyof6]

IMO it makes sense to verify the status of the selling account before even writing up the contract. The broker and buyer need to know if there is a loan, how many points, UY, point status, and dues status.

Bill

I totally agree - this is what happened with our first contract, and supposedly our agent on the 2nd contract "verified" the points and account status for this 2nd contract prior to drawing it up. That's why this mystery "verification" process makes zero sense.

 

[SuperRob]

IMO it makes sense to verify the status of the selling account before even writing up the contract. The broker and buyer need to know if there is a loan, how many points, UY, point status, and dues status.

Bill

One could argue that if Disney is going to exercise ROFR on a contract, you'd want to know that before you do anything else. If they do, any issues with the contract are their's to deal with. As a buyer, I'd hate to go through Estoppel, work through whatever issues there may be on the contract, only to have Disney buy it out from under me anyway.

 

[disneynutz]

One could argue that if Disney is going to exercise ROFR on a contract, you'd want to know that before you do anything else. If they do, any issues with the contract are their's to deal with. As a buyer, I'd hate to go through Estoppel, work through whatever issues there may be on the contract, only to have Disney buy it out from under me anyway.

I know that I remember on our resale contracts years ago that they verified, wrote the contract, submitted to Disney, if passed ROFR then estoppel and closing.

I know that some of the owners didn't have any idea about the status of their contract/points and one was completely off on the available points. We rescinded our verbal offer before we signed the contract to purchase on that one.

Bill

 

[disneylovinfamilyof6]

One could argue that if Disney is going to exercise ROFR on a contract, you'd want to know that before you do anything else. If they do, any issues with the contract are their's to deal with. As a buyer, I'd hate to go through Estoppel, work through whatever issues there may be on the contract, only to have Disney buy it out from under me anyway.

This exactly! With the price PP this contract has a very good chance of being taken in ROFR, IMO. Why make people wait it out more than twice as long and then possibly have it yanked back by Disney?

 

[disneylovinfamilyof6]

I know that I remember on our resale contracts years ago that they verified, wrote the contract, submitted to Disney, if passed ROFR then estoppel and closing.

I know that some of the owners didn't have any idea about the status of their contract/points and one was completely off on the available points. We rescinded our verbal offer before we signed the contract to purchase on that one.

Bill

This is the process my first contract followed. This one has just been completely different.

 

[vn2y]

I had this experience exactly. We got a great price from this broker and we were in "verification" for 5 months. They would give me little to no information. It finally was sent to Disney and Disney took the contract. What a waste of time and totally tied up our money. We could have made an offer on another contract in that time and likely gotten to closing before Disney changed the rules on member perks. I am never dealing with that company again. They were terrible. PM me if you want to chat. I am curious if it's the same company.