Delayed closing on resale contract?

[WDWRook]

How does a delayed closing work? Is the contract sent through ROFR first, and then if passed all documents and signed and sent to the title agent to be held in excrow until the closing day, at which point it is recorded? Or is it something else? I see a number of stripped contracts with delayed closings (still at inflated prices).

 

[MICKIMINI]

Exact same process including going through ROFR and then everything comes to a standstill until closing date (usually the day after the vacation ends). The closing company will have everything prepared (or should) and it is then up to them to send to all parties for signature and seller for notarization. If it is docusign-type electronic documents, the notarization (wet signature) is the hold up, but in theory can be done that day and then overnighted to the closing company. You are at the mercy of the closing company and seller, but usually everyone just wants it done at that point! Good luck!

 

[Sandisw]

I have bought and sold this way a few times. Same process for ROFR each time. About 2 weeks before the delayed closing date, we got the documents to sign and return. The day the reservation ended, every contract was closed and sent to county for recording!

 

[WDWRook]

Thanks

 

[Stargazer65]

I assume delayed closing refers to resales listings where it says "can close after blah, blah, blah" (usually a date several or many months away). So the delayed closing is for waiting until after the seller completes a booked vacation using the contract?

 

[DaveNan]

I assume delayed closing refers to resales listings where it says "can close after blah, blah, blah" (usually a date several or many months away). So the delayed closing is for waiting until after the seller completes a booked vacation using the contract?

That is correct. All booked vacations get cancelled if the contract passes hands, so the delayed closing is there to allow all booked vacations to occur. I think DVC quite often delays processing the ROFR many times if the closing is delayed. The rule if they need at least 30 days, but have up to closing. So when closing is delayed 3-4 months, DVC can take their time on processing ROFR.

 

[CarolMN]

That is correct. All booked vacations get cancelled if the contract passes hands, so the delayed closing is there to allow all booked vacations to occur. I think DVC quite often delays processing the ROFR many times if the closing is delayed. The rule if they need at least 30 days, but have up to closing. So when closing is delayed 3-4 months, DVC can take their time on processing ROFR.

And it's extra time (risk) for one of the parties to back out.

 

[Sandisw]

That is correct. All booked vacations get cancelled if the contract passes hands, so the delayed closing is there to allow all booked vacations to occur. I think DVC quite often delays processing the ROFR many times if the closing is delayed. The rule if they need at least 30 days, but have up to closing. So when closing is delayed 3-4 months, DVC can take their time on processing ROFR.

While they could, I have bought and sold 4 times with delayed closings and all came back in the same timeline as the rest of them.

So far, they have not delayed the ROFR process due to the closing being months away.

 

[RoseGold]

I did a delayed closing and ROFR was waived pretty quickly. My understanding is that Disney can still take the contract until closing date, but I haven't seen that actually happen after ROFR is waived.