Contract Says "Cannot Close Until"

[Disney Fanatic]

We are looking at buying resale and the contract says it cannot close until a specific date.

Can anyone explain what this means.

Will this go through the ROFR process so we know if we can buy it and then just have to wait to close or does the entire process have to only begin at the date specified?

Thanks very much

 

[Beca]

The resale agent will go ahead and submit for ROFR. Then, if you pass...the closing company will just "sit" on the contract until the closing date, then they will process.

If you don't pass ROFR, you can go looking for another contract.



Beca

 

[poohj80]

We are looking at buying resale and the contract says it cannot close until a specific date.

Can anyone explain what this means.

My guess is the sellers have a trip booked and want one more DVC trip out of their points before selling.

 

[DebbieB]

My guess is the sellers have a trip booked and want one more DVC trip out of their points before selling.

I agree. Any existing open reservations are cancelled at closing.

 

[JimC]

Usually a "cannot close until" means there is a reservation made on the contract that must be used.

 

[Disney Fanatic]

So if the contract cannot close until September, and the listing says you will get current years points and all points in 2006, what would this mean?

 

[Doctor P]

If I am not mistaken, DVC cancels all reservations on a contract as soon as it is submitted/passes ROFR from what has been posted on other threads. Perhaps I am mistaken, but I recall a discussion of this a while ago.

 

[poohj80]

So if the contract cannot close until September, and the listing says you will get current years points and all points in 2006, what would this mean?

Perhaps they banked points from last year for one last trip.

 

[RobDoc]

If I am not mistaken, DVC cancels all reservations on a contract as soon as it is submitted/passes ROFR from what has been posted on other threads. Perhaps I am mistaken, but I recall a discussion of this a while ago.

I believe that's the case- DVC must certify the status of the contract (number of points, financial status) prior to closing and will cancel any existing reservations before closing in order for the title company to do it's job.

In the case of this listing, I'd ask the broker for the particulars regarding the specific date. It could mean that the planned trip is 30 days (the period DVC has for ROFR) prior to the closing date and they will be protected if the offer is not submitted until their trip has been completed.

 

[tamu91]

Perhaps they banked points from last year for one last trip.

This is what it sounds like if the listing says you'll be getting all of 2005 points. The current owner must have a reservation in place in September so they can't not close until then. I guess if you're getting current UY points, that's not too bad a deal unless you need those points sooner

 

[pat@dvcstore]

The resale agent will go ahead and submit for ROFR. Then, if you pass...the closing company will just "sit" on the contract until the closing date, then they will process.

If you don't pass ROFR, you can go looking for another contract.



Beca

The Timeshare Store uses Timeshare Closing Services.

Once a contract has passed ROFR, DVC notifies the title company who then requests a title search. In the meantime, they prepare all documentation such as new deed, title insurance, etc. As soon as everything is supplied to them - including the estopple information from DVC which sometimes takes awhile depending on how backed up DVC's admin office is - then paperwork is sent out immediately. The title company does not wait until the "estimated" closing date unless there is a pending reservation for the seller. In that case, the ressie must be complete before the contract can close.

Our contract, for example, reads "The contract will close on or before xx/xx/xxxx".

Jamie (one of our associates) had one of her contracts close is 4 weeks!!! It passed ROFR quickly and TCS received all the required docs.

Everyone wants to close quickly. The title company included. They don't sit on paperwork just to wait for an estimated date.

Hope this clears up any misconception.

Pat
The Timeshare Store, Inc.

 

[pat@dvcstore]

Let me back up a little.

If the advertising says "Cannot close until xx/xx/xxxx" then Beca is correct. Everything will be done prior to the closing date and then the title company will wait until the Seller has taken their vacation.

My reply was to the title that was worded "Contract says cannot close" and my explanation was to say that if the contract says "Can close on or before xx/xx/xxx" then the title company will do everything to close ahead of schedule.

I think I misunderstood the question. Sorry.

Pat