DVC Resale Purchase - Contract Question

[pkrieger2287]

Hey everyone - Purchasing our first DVC Points via resale and reviewing our buyer/seller contract and saw this language which in my opinion makes no sense:

e. Commission: On the Closing Date, Buyer shall pay asales commission (“Commission”) to Vacatia Brokerage Services – South East, Inc. (“Broker”) no more than to five percent (5%) of the gross consideration paid by Purchaser for the Vacation Ownership Interest in consideration for services provided by Broker relative to the sale of the Vacation Ownership Interest. Buyer hereby directs Closing Agent to disburse the Commission to Broker on the Closing Date from the funds held in escrow. The seller is paying Vacatia $____ which will be equally split with DVC Magic Resales.

I emailed my rep to see if this was a typo and haven’t heard back yet. Just wanted to see if anyone had any experience. My wife and I have never heard of a Buyer paying commissions?

 

[Ben E N]

It sounds like they are saying that they reserve the right to divert 5% of the money you pay to the seller. Not that you are paying 5% extra to them.
I would be interested to see how others read this, though.

 

[pkrieger2287]

It sounds like they are saying that they reserve the right to divert 5% of the money you pay to the seller. Not that you are paying 5% extra to them.
I would be interested to see how others read this, though.

I would like to hope that’s correct but our first version or the contract did not have any of the correct terms we agreed to so I’m a little hesitant now. My wife was also a realtor previously so we take these things seriously. Lol

 

[Ben E N]

I would like to hope that’s correct but our first version or the contract did not have any of the correct terms we agreed to so I’m a little hesitant now. My wife was also a realtor previously so we take these things seriously. Lol

Yes, getting everything checked out is definitely the right move. Your rep should be happy to help you every step along the way.

 

[pkrieger2287]

Yes, getting everything checked out is definitely the right move. Your rep should be happy to help you every step along the way.

He’s been excellent and very patient with all our questions!

 

[disneylovinfamilyof6]

I’m glad you posted this. I’ve been looking at some Vacatia listings too (are they new?), but I am
always nervous using a company that I haven’t done business with previously or that I haven’t heard much about.

Please keep us posted on the outcome of this commission issue. I hope that it’s not truly a “buyer pays commission” deal.

 

[CarolMN]

Just a guess, but it sounds to me it is just saying that it is OK for the closing company to send the commission amount to the broker before disbursing the proceeds to the seller. I'm not an expert, so again, just a guess.

 

[SherylLC]

I looked at my Vacatia contract and it definitely says SELLER shall pay "up to 5% commission."

 

[pkrieger2287]

I looked at my Vacatia contract and it definitely says SELLER shall pay "up to 5% commission."

Well that makes this even stranger and more interesting... Not making me comfortable about my first DVC Purchase.

 

[disneynutz]

Good catch! My guess is that they cut and pasted the wrong paragraph to your contract. Vacatia is a reselling business partner with Disney, who are you buying from and who was the original listing broker?

Bill

 

[supersnoop]

I looked at my Vacatia contract and it definitely says SELLER shall pay "up to 5% commission."

Commission for DVC is typically 10%, so perhaps they’re just trying to show 5% from each party like a traditional real estate contract where the sellers agent and buyers agent each get half.

 

[aoconnor]

Commission for DVC is typically 10%, so perhaps they’re just trying to show 5% from each party like a traditional real estate contract where the sellers agent and buyers agent each get half.

I think the three biggest brokers charge 8.5% these days.

 

[pkrieger2287]

Thanks for your feedback everyone! After talking to my rep from DVC Magic Resales this morning he was able to verify that this was a typo that Vacatia made in preparing the contract. It was fixed and we have submitted for the seller to sign.

Since this is our first DVC purchase I don't have much experience but based on the back and forth I'm getting the feeling that some of this type of confusion is fairly typical with Vacatia. Again, just my opinion but sort of the vibe I've gotten from my rep.

 

[Matty B13]

I have found some errors on the 4 contracts that I purchased, and had the broker correct them. Not a big deal unless they refuse to correct them before signing.

I think that these contracts are a very small compared to contracts to buy actual houses, so not a lot of them are reviewed thoroughly by the brokers.

 

[SherylLC]

Thanks for your feedback everyone! After talking to my rep from DVC Magic Resales this morning he was able to verify that this was a typo that Vacatia made in preparing the contract. It was fixed and we have submitted for the seller to sign.

Since this is our first DVC purchase I don't have much experience but based on the back and forth I'm getting the feeling that some of this type of confusion is fairly typical with Vacatia. Again, just my opinion but sort of the vibe I've gotten from my rep.

I don't think it was nefarious. Probably an oversight from previous contract that was cut and pasted like Bill said. My Vacatia purchase was very smooth...and they have great asking prices, too!

 

[disneynutz]

Thanks for your feedback everyone! After talking to my rep from DVC Magic Resales this morning he was able to verify that this was a typo that Vacatia made in preparing the contract. It was fixed and we have submitted for the seller to sign.

Since this is our first DVC purchase I don't have much experience but based on the back and forth I'm getting the feeling that some of this type of confusion is fairly typical with Vacatia. Again, just my opinion but sort of the vibe I've gotten from my rep.

So you found a contract through magic resales listed with vacatia and vacatia is who you are really doing business with? And since vacatia is DVD's business partner, there is a good chance that vacatia got the contract from Disney?

Bill

 

[pkrieger2287]

So you found a contract through magic resales listed with vacatia and vacatia is who you are really doing business with? And since vacatia is DVD's business partner, there is a good chance that vacatia got the contract from Disney?

Bill

Yep - That sounds about right!

Soooooo does this mean my ROFR chances are good?

 

[disneynutz]

Yep - That sounds about right!

Soooooo does this mean my ROFR chances are good?

I would hope so.

Bill

 

[mustinjourney]

I have found some errors on the 4 contracts that I purchased, and had the broker correct them. Not a big deal unless they refuse to correct them before signing.

I think that these contracts are a very small compared to contracts to buy actual houses, so not a lot of them are reviewed thoroughly by the brokers.

I still find it very sad that there are typos in these contracts...these brokers don't have to do that much work in selling these things. It's really not that hard to make sure everything is filled in properly.

These contracts are more or less boiler plate that need a few blanks filled in. It shouldn't be that hard.

 

[Matty B13]

Yeah, It is pretty sad since it takes me all of 2 minutes to review a contract and see the errors. And they are suppose to be the professionals.