Estoppel Certificate within 15 days by Florida Statute

[jnjhuddle]

ok. so, I wanted to learn more about Estoppel, so was searching around the Internet and found this....
http://www.leg.state.fl.us/STATUTES...=&URL=0700-0799/0720/Sections/0720.30851.html

I'm thinking this applies to purchasing a DVC timeshare but hoping someone with legal/and or real estate knowledge could let us know if this applies? I'm in no hurry for my contract to close, as I don't need the points any time soon, but for those that need to close real soon, could this info be a game changer?

Also, if this is true and DVD is taking longer than 15 days to supply the Estoppel cert, are they being fined?

I kinda get the feeling it's the closing/title companies that are probably actually delaying putting in the request for Estoppel certificate and not the other way around,

 

[mickeyman]

Disney has been giving out estoppels within a few days of passing, it's the title companies holding everything up

 

[supersnoop]

The DVC POS filing says the same thing. DVC has been taking about 30 days. The title companies are turning things around in less than 48 hours.

 

[disneynutz]

The DVC POS filing says the same thing. DVC has been taking about 30 days. The title companies are turning things around in less than 48 hours.

How do you know how long Disney is taking for the estoppel, when they were requested and when they are provided to the broker/closing company?

Bill

 

[RobbW]

How do you know how long Disney is taking for the estoppel, when they were requested and when they are provided to the broker/closing company?

Bill

This I would like to know, as well. For all we know, Disney could be fulfilling estoppel requests within the required 15 days. It's possible it's the time-frame from when a contract clears ROFR until the title company sends the estoppel request to Disney, or from the title company receiving the estoppel certificate until they process closing documents and send them off to the contract parties, that could very well be holding things up. I doubt most title companies are going to be forthcoming and truthful about the timing of this process if THEY are the ones running behind and slowing everything up.

 

[Friendlyadvice2]

ok. so, I wanted to learn more about Estoppel, so was searching around the Internet and found this....
http://www.leg.state.fl.us/STATUTES...=&URL=0700-0799/0720/Sections/0720.30851.html
View attachment 131844
I'm thinking this applies to purchasing a DVC timeshare but hoping someone with legal/and or real estate knowledge could let us know if this applies? I'm in no hurry for my contract to close, as I don't need the points any time soon, but for those that need to close real soon, could this info be a game changer?


Also, if this is true and DVD is taking longer than 15 days to supply the Estoppel cert, are they being fined?

I kinda get the feeling it's the closing/title companies that are probably actually delaying putting in the request for Estoppel certificate and not the other way around,

The section of Florida Statutes you cited (Title XL, Chapter 720) governs Homeowner's Associations and does not apply in the least to DVC. Chapter 721 (Vacation and Timeshare Plans) and more specifically, Section 721.15(7))b), which I cited below, is where you'll find the law governing "estoppel certs" that would apply to DVC. A quick review shows that DVC actually has 30 days to provide the cert. This information is also found in the every Florida DVC Declaration initial filing, usually in Section 8 and titled "Certificate". The Orlando based Declarations can be viewed on the OCC website where other "actual DVC data" is found.

Out of curiosity, if you were able to prove Disney took longer than 30 days to provide the estoppel cert, what exactly would you do with that and what would you expect to gain by it? How would it change the game?

721.15(7)(b) Within 30 days after receiving a written request from a timeshare interest owner, an agent designated in writing by the timeshare interest owner, or a person providing resale transfer services for a consumer timeshare reseller pursuant to s. 721.17(3), a managing entity must provide a certificate, signed by an officer or agent of the managing entity, to the person requesting the certificate, that states the amount of any assessment, transfer fee, or other moneys currently owed to the managing entity, and of any assessment, transfer fee, or other moneys approved by the managing entity that will be due within the next 90 days, with respect to the designated consumer resale timeshare interest, as well as any information contained in the books and records of the timeshare plan regarding the legal description and use plan related to the designated consumer resale timeshare interest.
1. A person who relies upon such certificate shall be protected thereby.
2. A summary proceeding pursuant to s. 51.011 may be brought to compel compliance with this paragraph, and in such an action the prevailing party may recover reasonable attorney fees and court costs.
3. The managing entity may charge a fee not to exceed $150 for the preparation and delivery of the certificate. The amount of the fee must be included on the certificate.

 

[ustasmom]

This I would like to know, as well. For all we know, Disney could be fulfilling estoppel requests within the required 15 days. It's possible it's the time-frame from when a contract clears ROFR until the title company sends the estoppel request to Disney, or from the title company receiving the estoppel certificate until they process closing documents and send them off to the contract parties, that could very well be holding things up. I doubt most title companies are going to be forthcoming and truthful about the timing of this process if THEY are the ones running behind and slowing everything up.

So then maybe listing the title company on the ROFR posting might lead to better accountability?

 

[RobbW]

So then maybe listing the title company on the ROFR posting might lead to better accountability?

Except some title companies are banned from being mentioned on the boards. So, it would be hard to reference them without garnering undue attention from the mods. Also, most buyers go through a broker to purchase DVC resale and kind of get stuck with whatever title company the broker uses. You usually will not know the title company until after you've put in an offer and it has been accepted.

 

[ustasmom]

Except some title companies are banned from being mentioned on the boards. So, it would be hard to reference them without garnering undue attention from the mods. Also, most buyers go through a broker to purchase DVC resale and kind of get stuck with whatever title company the broker uses. You usually will not know the title company until after you've put in an offer and it has been accepted.

Odd that some would be banned as no title company is on the sponsor list unless there is another list. My bet is that they all work with each other. And why wouldn't a broker want to go with the best guy? The earlier it closes, the earlier they get paid.

 

[jnjhuddle]

The section of Florida Statutes you cited (Title XL, Chapter 720) governs Homeowner's Associations and does not apply in the least to DVC. Chapter 721 (Vacation and Timeshare Plans) and more specifically, Section 721.15(7))b), which I cited below, is where you'll find the law governing "estoppel certs" that would apply to DVC. A quick review shows that DVC actually has 30 days to provide the cert. This information is also found in the every Florida DVC Declaration initial filing, usually in Section 8 and titled "Certificate". The Orlando based Declarations can be viewed on the OCC website where other "actual DVC data" is found.

Out of curiosity, if you were able to prove Disney took longer than 30 days to provide the estoppel cert, what exactly would you do with that and what would you expect to gain by it? How would it change the game?

721.15(7)(b) Within 30 days after receiving a written request from a timeshare interest owner, an agent designated in writing by the timeshare interest owner, or a person providing resale transfer services for a consumer timeshare reseller pursuant to s. 721.17(3), a managing entity must provide a certificate, signed by an officer or agent of the managing entity, to the person requesting the certificate, that states the amount of any assessment, transfer fee, or other moneys currently owed to the managing entity, and of any assessment, transfer fee, or other moneys approved by the managing entity that will be due within the next 90 days, with respect to the designated consumer resale timeshare interest, as well as any information contained in the books and records of the timeshare plan regarding the legal description and use plan related to the designated consumer resale timeshare interest.
1. A person who relies upon such certificate shall be protected thereby.
2. A summary proceeding pursuant to s. 51.011 may be brought to compel compliance with this paragraph, and in such an action the prevailing party may recover reasonable attorney fees and court costs.
3. The managing entity may charge a fee not to exceed $150 for the preparation and delivery of the certificate. The amount of the fee must be included on the certificate.

Thanks for the clarification on that. This is why I put it out there as I am not a lawyer or a realtor and don't have any kind of expertise on Florida Real estate law, but figured someone on these boards would have an answer.

As for your question, I personally would do nothing with this, as I stated, I'm in no hurry. However, there are a lot DISers out there that are unhappy with the length of the resale process as noted on the estoppel thread and the closing thread. If the law was on their side, I'm pretty sure if anyone wanted to pursue it, they must have a right to know when estoppel requests were sent/received. Many people are asking for their closing documents and they are getting a very generic answer "waiting on estoppel". If it was 15 days, like I had previously thought, then many of the requests are going beyond that. However, since the info you provided says they have 30 days, I guess we all continue to wait.....

 

[supersnoop]

A quick review shows that DVC actually has 30 days to provide the cert.

Except the DVC POS states 14 or 15 days.

 

[supersnoop]

How do you know how long Disney is taking for the estoppel, when they were requested and when they are provided to the broker/closing company?

I would assume the clock starts ticking at the ROFR waiver, and everyone over the past 6-9 months has been pretty clear that the title companies aren't receiving the estoppel for a month after that. I had one contract close during this time and we waited about 30 days for the estoppel.

 

[disneynutz]

I always thought that the estoppel happened prior to submitting the contract to Disney. Buyers pay for it and the brokers use it to verify the contract, point status and dues status. Those items are used to write the contract. In the past estoppel only took a few days, is this now another Disney resale delay tactic?

Bill

 

[mickeyman]

My title company VWT had our estoppel within a couple days of passing ROFR

 

[supersnoop]

The estoppel is supposed to essentially place a lock on the current contract and provide an exact accounting of any amounts owed and points available, which would all be reflected in the closing documents. The resale market seemed to really pick up in the past few months. Whether Disney is using the estoppel process as one more delay or if they're simply not staffed for the volume, I can't say. But I have found the 14-day requirement in the POS, and it seems clear they are not adhering to that requirement.