DVC Paperwork snafu?

[erinna]

As a first-time poster and a potential DVC member, I'm very impressed with the information and helpfulness of y'all -- and I'm hoping to be the recipient of that knowledge and hospitality!

My husband and I planned to join, but when we received our paperwork today, we were surprised to see the dollar amounts on the purchase agreement and the HUD statement were not the same! Basically, the purchase agreement included the incentive money as a credit from the seller (Disney). But HUD statement said we were in fact responsible for the payment of the incentive money. IOW the HUD statement in the Purchase agreement claimed we owed different amounts!

When we called Disney Quality Assurance, we were just told "that's how Disney does it." But the two of us, we've bought several houses in the past, and we'd NEVER sign an inaccurate HUD agreement.

So I'm wondering if anyone else has had the experience of being presented with a HUD statement and a Purchase agreement with different amounts, and what explanation you were offered. And if anyone has any suggestions on how to get these documents to agree, I'd love to hear them!

Many thanks, Erinna

 

[Crystal_27]

It is, indeed, just the way that DVC prepares its HUD statements. My guess is they do it that way because, in theory, DVC could cut you a check for the incentive and not have it applied to the purchase cost, so, technically, that money is owing to them.

I'm not trying to sound rude, but DVC is likely not going to do anything else for you at this point, and its now up to you to decide whether or not this issue is worth losing your contract over. Rest assured, though, DVC is not going to come back to you after closing and expect payment of the incentive money. Either way, good luck!

 

[erinna]

Thanks, Crystal -- it's likely we won't sign a contract that isn't accurate, and you've certainly saved us time trying to get the thing changed!

 

[Sandisw]

I do think that if your purchase agreement is correct, then you will be fine. As long as the paperwork states that you are purchasing for a certain amount, you can't be charged more than that.

You should also have received a Receipt for Deposit which might list the developer credit on it. Again, if it is there, it is stating that the developer is to pay that amount.

Technically, you are responsible for the amount of the developer credit and that is why it is there as your responsibility. However, Disney is paying that amount for you, and that is why it shows it on the purchase agreement.

I know it seems a little odd but all you are really signing is something that it saying you understand that you bought for a certain price. And, that price is the full cost of the contract. If you look at settlement charges, it should show 0. As long as that is the case, then you are all set.

Good luck!

 

[disneynutz]

Disney does everything for a reason and the discrepancy only occurs with direct buys. I am guessing that it's some type of tax or financial loophole that they are taking advantage of.

Bill

 

[bumbershoot]

Thanks, Crystal -- it's likely we won't sign a contract that isn't accurate, and you've certainly saved us time trying to get the thing changed!

And I doubt that Disney's lawyers would let them have a legal document that's not accurate either. So I would probably think that it doesn't appear to be accurate to you, but it IS legally accurate to them and to HUD, sign it, and become a happy owner.

 

[bookwormde]

I would suggest calling HUD and finding out if it is correct.

bookwormde

 

[cel_disney]

We had the same questions when we first reviewed our paperwork, but after some research it appeared to be legal and the totals were infact correct for what they wanted us to pay so we went forward with it.

Its different than what we are used to wrt buying homes, but this is a different animal than that!!

 

[Doctor P]

Just to reiterate, I think you can be sure that not only is the paperwork legally correct, it also an accurate depiction of the transaction. Contrary to the statements in the original post, it is NOT unusual in real estate transactions to have the HUD disclosure differ in some ways from the other paperwork.

 

[delmar411]

There should have been a sheet in your paperwork where you sign over the incentive money to DVC to be used as payments towards your points.
Was that sheet not there?

The contract & HUD do not have to be identical because they aren't the same thing at all. You could take the incentive money as cash (or GC ) if you had the money in full to pay for the points. Sort of like getting cash back at closing on a house. Which is why there is supposed to be a paper in there that has you signing back the incentive money to DVC.

 

[Jason@dvcstore]

I am guessing that it's some type of tax or financial loophole that they are taking advantage of.

Bill


[/COLOR]

That is my guess as well.

I hope that doesn't stop you from becoming a member.

Jason

 

[erinna]

Thanks, y'all for all the help!

FWIW, I had a much more satisfactory response when I met f2f with a DVC rep -- the person I spoke to on the phone would only say "That's the way it is," which is neither a procedural nor a legal answer, so we were a bit concerned. But the in-person rep was much more forthcoming so we've sent the papers to our lawyer. Hopefully, it will all work out!

Again, many thanks -- Erinna.