DVC Purchase - Pending Reservation not Disclosed

[SmallWorldGal]

I am fuming and am trying to get some input while I wait for a response from my agent.

My BW contract passed ROFR on 3/18. I received my paperwork on 3/24 and mailed it back to them with payment in full on 3/31 (they received on 4/2). They have yet to receive the returned documentation from the sellers. I have reached out once a week since 4/13 asking for an update. On 4/20, they said that the sellers had a notary appt the weekend prior so we should be receiving documents shortly. On 4/28, I reached out to the title company and got no response, so today I sent a followup. My agent stepped in and said he would reach out since I wasn't getting any answers. He responds with "Seller’s broker advised that seller should be getting closing docs notarized today. Once complete, transfer will take place once seller’s August reservation is completed." I am livid. There was never any mention of a delayed closing. I put in my offer the end of January, so even if they had to reschedule because of shutdown, I should have been made aware of a reservation. I have an email to the agent where I specifically asked if there were any pending reservations to which he said there were not.

I paid in full as of the first of April, but now I'm told closing will be at some point in August at the earliest? Not to mention the price point I offered and accepted in January are sure to be lower now. I would have never agreed to purchase with a delayed closing. My agent said that he was unaware of any pending reservation as well and confirmed that there was no mention of it in the contract paperwork.

Any idea of what my options are at this point due to their lack of disclosure? I want to prepare myself of what to expect when I here back from my seller/title company.

 

[ChipNdale8887]

I am fuming and am trying to get some input while I wait for a response from my agent.

My BW contract passed ROFR on 3/18. I received my paperwork on 3/24 and mailed it back to them with payment in full on 3/31 (they received on 4/2). They have yet to receive the returned documentation from the sellers. I have reached out once a week since 4/13 asking for an update. On 4/20, they said that the sellers had a notary appt the weekend prior so we should be receiving documents shortly. On 4/28, I reached out to the title company and got no response, so today I sent a followup. My agent stepped in and said he would reach out since I wasn't getting any answers. He responds with "Seller’s broker advised that seller should be getting closing docs notarized today. Once complete, transfer will take place once seller’s August reservation is completed." I am livid. There was never any mention of a delayed closing. I put in my offer the end of January, so even if they had to reschedule because of shutdown, I should have been made aware of a reservation. I have an email to the agent where I specifically asked if there were any pending reservations to which he said there were not.

I paid in full as of the first of April, but now I'm told closing will be at some point in August at the earliest? Not to mention the price point I offered and accepted in January are sure to be lower now. I would have never agreed to purchase with a delayed closing. My agent said that he was unaware of any pending reservation as well and confirmed that there was no mention of it in the contract paperwork.

Any idea of what my options are at this point due to their lack of disclosure? I want to prepare myself of what to expect when I here back from my seller/title company.

Wow this is messed up. Aren't you usually not required to pay in full until closing? If closing was in august you shouldn't have been required to pay in full until then. What is the title company and website you are buying from?

 

[ljlaurajane]

Sorry no advice but wanted to say that is awful for you and you have every right to be fuming. Does the contract or paperwork state a contracted closing date at all? What broker did you use?

 

[ChipNdale8887]

Wow this is messed up. Aren't you usually not required to pay in full until closing? If closing was in august you shouldn't have been required to pay in full until then. What is the title company and website you are buying from?

Something Makes me know what DVC seller this might be...

 

[EM Lawrence]

Dang! That is not good! Not only have prices likely dropped since January, I think they are likely to be even lower in August!

 

[SmallWorldGal]

Sorry no advice but wanted to say that is awful for you and you have every right to be fuming. Does the contract or paperwork state a contracted closing date at all? What broker did you use?

The buyer's closing statement is dated as 3/31/20. Would that be considered the "contracted closing date"? I would have never paid in full in April if I had known closing would be in August. I was thinking it would be immediately in receipt of paperwork which was targeting that day.

 

[SmallWorldGal]

Dang! That is not good! Not only have prices likely dropped since January, I think they are likely to be even lower in August!

My thoughts EXACTLY!!

 

[ChipNdale8887]

The buyer's closing statement is dated as 3/31/20. Would that be considered the "contracted closing date"? I would have never paid in full in April if I had known closing would be in August. I was thinking it would be immediately in receipt of paperwork which was targeting that day.

Is the listing still listed on the dvc resale website? It likely still is. Was this Fidelity DVC Resales?

 

[Deeleebaker]

Look for the term “time is of the essence” in the contract. I sold real estate in Nj and if a closing got delayed, that was the clause that could get contract cancelled. If you “paid in full” but haven’t gone to closing, that might (real estate law is state specific) be considered a deposit And refundable.

 

[Sandisw]

Your closing date should be listed in your original paperwork that you signed,

I just sold one with a delayed closing and it was listed in that Document. It was even bolded and said, closing can not occur until June 26 but no later July 5th.

If your original document does not say anything about a delayed closing, then you should be able to end the deal,

In addition, check the point total. This should all have been verified by the selling agent,,,mine had to verify it..

I would be livid as well.

 

[Noodlez]

I wish I was able to offer some advice. Unfortunately, all I can say is that it’s no surprise you’re fuming! I haven’t heard of this happening before, but I hope you can find some way to get this reversed or be compensated. Good luck.

 

[SmallWorldGal]

My agent emailed me back and again stated that he was unaware of any reservation, and there was no mention of it in any of the contracts that I signed.
He then goes on the say if I cancel, it will be at buyer's default (are you freaking kidding me?) because the buyer usage is listed as after the date of the reservation. (There were no current UY points).
He says that the sellers weren't aware that they were going to lose points so they made a reservation after contract was submitted and information was pulled from DVC.
He also says that the sellers don't want to jeopardize the sale, so they are willing to cancel the reservation, and I can buy the points (not even sure how many).

My thing is... Wouldn't paying more for the extra points completely change the contract and require re submission to ROFR and such? There is no way they are delaying the closing until August and holding my money for the entire contract until then. And I don't really fell comfortable giving them additional money to buy additional points either.

I looked back at original contract, and I don't see a mention of specific closing date. Although it did specifically state that if documents weren't received within 14 business days, the seller would be in default. It always specifically said the "Time is of the essence" wording as well. And considering the reservation was made after the paperwork, of course there is no mention of it.

It just really bothers me that I returned documents on time and paid in full, and these people have the nerve to say that I am the one that would be in default if I cancelled.

 

[Sandisw]

If they cancel the reservation and the point status changes, the contract needs an amendment and has to go back through the ROFR process as it changes the terms,

I am surprised the paperwork sent to Disney did not include a closing date because they are to be given at least 30 days before closing to decide, With no date, they could take their time,

Also, I don’t see how they can say that it’s buyers default, and that a closing until August meets the time is of the essence clause.

I am so sorry for this but your agent and buyers agent messed this up because the points should not have been used when discovered, and you should have been given the new information as soon as it was so you could decide to back out then or adjust your offer,

 

[CraigInPA]

The seller jeopardised the closing of the agreement by making that reservation after the agreement was signed. I'd tell the broker that you will agree to close now, and will agree to re-book the vacation (if possible) for them once the contract is transferred with the points intact. Alternately, tell them that the closing date is approaching and you will not extend closing past that date, which, under the contract, is not a "buyer breach".

 

[sethschroeder]

I would get out of the agreement and get a new contract.

Unacceptable and at this point I can pretty much guarantee you likely will get a better price by August unless this is a sub 50 point contract than who knows.

 

[sethschroeder]

Also I would check to see what if anything it says about not closing by that closing date it should say what would happen.

I would also ask for clarification what happens if their reservation gets moved to November or January or next March. Try to get them to see the craziness of this.

 

[macman123]

I have purchased a contract. It says there that 'must close by xxxxx'. Therefore they have to close by that date. If it gets put back I think you could unwind the contract for breach.

 

[SmallWorldGal]

I even went back and asked my agent to make sure I wasn't just missing a specific closing date and it too says there doesn't seem to be one referenced. He says that if I cancel, it is up to the title company to decide whether the fault is in the buyer or the seller. With that date not being specifically noted and my actual points usage still occurring after the reservation, I am alittle worried that they will say its my fault. But the title company had forward dated the closing paperwork showing a 3/31/20 date (I received them on 3/24 with that date showing which is why I paid the balance in full immediately.)
Section 8 in the original contract states buyer and seller documents should be returned in 14 days (which they weren't) and Section 10 states seller default for delay of closing so I feel like I should be covered, but with the agent saying title company will decide fault and a closing date not showing, I am still worried about them trying to charge me for fees due to late cancellation.

 

[badeacon]

Every resale contract I have had ,has had either a closing date in contract or to be closed in certain number of days from effective date of contract( usually when both parties have signed.)
Also could agent be telling you that you might be in default because they would lose commission?
If the documents you received from closing company had a closing date on them, then they should honor that date.
I also feel it would be helpful to others to know name of company which would have a contract with no closing date.

 

[Sandisw]

I even went back and asked my agent to make sure I wasn't just missing a specific closing date and it too says there doesn't seem to be one referenced. He says that if I cancel, it is up to the title company to decide whether the fault is in the buyer or the seller. With that date not being specifically noted and my actual points usage still occurring after the reservation, I am alittle worried that they will say its my fault. But the title company had forward dated the closing paperwork showing a 3/31/20 date (I received them on 3/24 with that date showing which is why I paid the balance in full immediately.)
Section 8 in the original contract states buyer and seller documents should be returned in 14 days (which they weren't) and Section 10 states seller default for delay of closing so I feel like I should be covered, but with the agent saying title company will decide fault and a closing date not showing, I am still worried about them trying to charge me for fees due to late cancellation.

Here is the thing that I would ask the agents or the title company. Did Disney waive ROFR without those points included?

If they did, then an amendment should be done that accurately reflects that and Disney should have the right to review it again. The contract that was sent to Disney has to be an accurate reflection of the account.

Again, if there is no closing date, but it says returned in 14 days, the sellers do appear in default.

Just for info: Here is how my contract was done to show delayed closing.