DVC Industry Resale Contracts

[TinkAgainU]

I cannot be the only one frustrated with how long Sellers are given to return their final documents. It seems, for someone making an offer, that might be another term to review the wording, and NEGOTIATE the timeframes BEFORE signing. Giving a Seller 6 weeks to return a notarized Deed (and I'm reasonably sure it can be done virtually now) is stupid. If I could go back and change mine - they would give the Seller 10 days from ROFR or 7 days from receipt of final documents, whichever happens first. It would also state how long the Broker has to send to ROFR, and how long for Escrow Documents to be provided. This is sufficiently a buyer's market - this would be the time to quit treating Buyers poorly on timeframes. Just my two cents worth.

 

[Sandisw]

I don’t think you would get many sellers to agree to all of that and definitely not have a company agree either, especially since they close it as soon as they can.

I realize it’s frustrating but there may also be laws that govern whether you can force anyone to have to sign prior to the expected closing date,,which is set based on timeline of ROFR.

When I sold, I would not include a closing date less than 60 days out to account for delays.

 

[TinkAgainU]

... whether you can force anyone to have to sign prior to the expected closing date,,which is set based on timeline of ROFR.

When I sold, I would not include a closing date less than 60 days out to account for delays.

But that is my complaint - the Brokerages are building in this insanely long time for everything to be completed start to finish, when the deadlines should be tiered to "for example" x days after ROFR is waived and estoppel received. These are simple, short contracts, and just like we, as a group, have noticed added fees or charges tacked on by Brokerages, we can likely start having some input as to timeframes noted on the contracts.

Terms OR Brokerages which do not fairly and equally represent Buyer's interests should be called out.

 

[CarolMN]

Many here will not send money to close a sale (beyond initial deposit) until seller returns documents.

 

[Sandisw]

But that is my complaint - the Brokerages are building in this insanely long time for everything to be completed start to finish, when the deadlines should be tiered to "for example" x days after ROFR is waived and estoppel received. These are simple, short contracts, and just like we, as a group, have noticed added fees or charges tacked on by Brokerages, we can likely start having some input as to timeframes noted on the contracts.

Terms OR Brokerages which do not fairly and equally represent Buyer's interests should be called out.

I do get that, but as a seller, I wanted time built in to ensure all pieces can be completed, I think ever business has to make their own decisions on what they can and can not do, and buyers will have to decide if that does or does not work and move on from there.

Nothing wrong with wanting things to be different and asking for changes to a contract…but not everyone views things the same…

 

[tom1944]

I sent my paperwork and payment back today.

It should be delivered tomorrow so hopefully it will be completed soon.

 

[sethschroeder]

What happens after that 7 days? Unless you are willing to walk away after all that not sure it would matter for people dragging their feet.

 

[RoseGold]

Buy from a professional, like an estate or a bankruptcy. Both of mine returned within a couple days. Professionals don't want to sit on this.

 

[Cfabar1]

Yeah…. I have purchased a couple resale contracts… the hassle of it has me think my future contracts will be direct now that I can buy with add-on/member pricing. I also hate the amount of hand holding I have to offer the title company.

 

[TinkAgainU]

What happens after that 7 days? Unless you are willing to walk away after all that not sure it would matter for people dragging their feet.

Understood. But in my current contract the Agent made a point of saying the Sellers have six weeks to complete their documents - SIX WEEKS - how the heck is that a motivation to get anything done quickly? And I'm "trapped" in a deal with money on the table (at least a deposit, if not fully paid) all that time. I've worked with Sellers for years, and I assure you if you give Sellers six weeks to do something, you run a risk of Sellers not able (health for example) or willing (family decides to take one more points trip) for it to close. Hopefully, someone will learn from my mistake and ask for the contract to have reasonable timeframes - and expect Brokers to follow up to keep things moving.

 

[Sandisw]

Understood. But in my current contract the Agent made a point of saying the Sellers have six weeks to complete their documents - SIX WEEKS - how the heck is that a motivation to get anything done quickly? And I'm "trapped" in a deal with money on the table (at least a deposit, if not fully paid) all that time. I've worked with Sellers for years, and I assure you if you give Sellers six weeks to do something, you run a risk of Sellers not able (health for example) or willing (family decides to take one more points trip) for it to close. Hopefully, someone will learn from my mistake and ask for the contract to have reasonable timeframes - and expect Brokers to follow up to keep things moving.

It is six weeks from ROFR? Or was the closing date set for 6 weeks when you signed, I only ask because I have dealt with many and the only language was closing date. I don’t remember anything specific for once documents were received.

 

[TinkAgainU]

It is six weeks from ROFR? Or was the closing date set for 6 weeks when you signed, I only ask because I have dealt with many and the only language was closing date. I don’t remember anything specific for once documents were received.

Actually, contract just tacked on 7 weeks from when it was prepared until Closing. It did have a maximum of 3 days for Seller to sign and return the Contract, but there was NOT an XX days for Seller to return Escrow documents after receipt - in our case, since ROFR went quickly, Seller had 6 weeks to return Escrow documents (close).

It would be easy to add a timeframe for return of Escrow Documents to the initial contract, so that someone can follow up to keep things moving, and with the fluxuating ROFR turnaround, seems an intelligent clause to add.

The Agent/Broker could call the Seller after Escrow Documents go out to remind them they need to get to a Notary and return documents THIS WEEK - and frankly, reduces the number of follow ups probably needed between Agent/Seller and Agent/Impatient Buyer

 

[Sandisw]

Actually, contract just tacked on 7 weeks from when it was prepared until Closing. It did have a maximum of 3 days for Seller to sign and return the Contract, but there was NOT an XX days for Seller to return Escrow documents after receipt - in our case, since ROFR went quickly, Seller had 6 weeks to return Escrow documents (close).

It would be easy to add a timeframe for return of Escrow Documents to the initial contract, so that someone can follow up to keep things moving, and with the fluxuating ROFR turnaround, seems an intelligent clause to add.

The Agent/Broker could call the Seller after Escrow Documents go out to remind them they need to get to a Notary and return documents THIS WEEK - and frankly, reduces the number of follow ups probably needed between Agent/Seller and Agent/Impatient Buyer

Thanka for clarifying. That makes sense because you have to set a closing days at least 30 days out from when the contract is signed based on ROFR since DVD has to be given at least 30 days.

Adding another 3 weeks is not unreasonable….having sold and bought many, brokers do reach out to those who take a while…needed to do that last year with my buyer…

As I shared, I always asked for my closing date to be 60 days to allow for a long ROFR and time to get things back because i knew a buyer could walk if we didn’t meet the deadline.

Most sellers don’t delay…yes, there are some…but things happen So a few weeks in the scheme of things isn’t that big of a deal. When ROFR was taking a full 30 days that extra time really wasn’t that long. And, of course, knowing how long that piece will be is the big unknown.

 

[TinkAgainU]

Thanka for clarifying. That makes sense because you have to set a closing days at least 30 days out from when the contract is signed based on ROFR since DVD has to be given at least 30 days.

Just out of curiosity, if you know... If a contract is sent for ROFR and DVD responds in 3 days (hypothetically) with a waiver and estoppel, could escrow close immediately (assuming the docs and deed etc were all completed right away), or does the 30 days "in ROFR" still need to run out before it can formally Close?

 

[Sandisw]

Just out of curiosity, if you know... If a contract is sent for ROFR and DVD responds in 3 days (hypothetically) with a waiver and estoppel, could escrow close immediately (assuming the docs and deed etc were all completed right away), or does the 30 days "in ROFR" still need to run out before it can formally Close?

Yes, they can close the contract early once the waiver is received, estoppel issued and all monies and contracts in,

Years ago, estoppel usually came a few weeks later, but DVD changed things and seem to always send at the same time as ROFR.