extended closing date

[minnime]

I have noticed that some contracts have closing dates way out in the future. How does this work? Do you run the chance of losing the contract by doing this?

 

[Smile&Nod]

I don't believe you run the risk of losing the contract - I believe it means that that particular contract has a vacation planned against the points and until that vacation completes it can't actually be "sold" - the down side is you don't get the contract until that time and you can't make a reservation until you own it.

 

[permavac]

I have noticed that some contracts have closing dates way out in the future. How does this work? Do you run the chance of losing the contract by doing this?

As Smile&Nod mentioned, the future closing date is because the seller has a reservation booked on their points that they have not taken yet. As a seller, you are not able to keep your reservation after you close on your sale - it would be canceled by DVC so they close after their vacation is taken. Not 100% sure (maybe someone else can chime in) but I do think the contract can be submitted to DVC for ROFR in the meantime so that once the vacation is completed, closing can proceed...

I don't think you necessarily run any risk in losing the contract but I personally would stay away from one of these unless it was the perfect contract for me. I am a worrywart and I hate waiting so it would be torture waiting even longer than one already has to during the resale process. But that's me - I'm sure these transactions can go as smoothly as regular resale purchases...

Terri

 

[Tunseeker1]

DVD has until the closing date to excersize ROFR. If you sign today and close in 5 months that might change their answer.

 

[Missyrose]

DVD has until the closing date to excersize ROFR. If you sign today and close in 5 months that might change their answer.

But once they waive ROFR, they've waived it. They can't legally go back and change their mind just because the contract hasn't closed.

 

[ELMC]

DVD has until the closing date to excersize ROFR. If you sign today and close in 5 months that might change their answer.

Again I have to ask, where are you getting this information from?

 

[Jason@dvcstore]

I have noticed that some contracts have closing dates way out in the future. How does this work? Do you run the chance of losing the contract by doing this?

As others have said this means a seller has a pending reservation and the contract can't close until they check out. Everything else is the same. For example, Disney still has 30 days on deciding on ROFR so you will still know in 30 days if Disney is buying the contract back or not even if you are not closing for 8 months.

Hope that helps.

Jason Erpelding
Lic. Real Estate Broker Associate
From The Timeshare Store, Inc.®

 

[Sandisw]

We've sold two contracts with extended closing dates for the exact reasons mentioned--we had trips booked. We were going to wait to list but it was recommended by the broker to go ahead and do it as there are buyers that sometimes want that situation as it means they don't have to actually buy until later.

Both contracts sold within a few days, they went to Disney a few days later and ROFR was pretty quick. The day we checked out of the resort for the trips, the contracts closed.

 

[Tunseeker1]

Again I have to ask, where are you getting this information from?

From the DVD paperwork. If you read the papers you got when you bought it is in the condo documents
From bay lake tower paperwork

13.1 ALIEN ABILITY OF UNITS OR OWNERSHIP INTERESTS.

". . . However, if an Owner or Cotenant desires to sell, transfer, assign, or hypothecate that Owner's Unit or Ownership Interest, DVD has the right of first refusal to purchase the Unit or Ownership Interest in the Unit under the same terms and conditions as are offered to or by a bona fide third party, including financing. Accordingly, Owners or Cotenants desiring to sell their Unit or Ownership Interest must notify DVD in writing no less than thirty (30) days in advance of the proposed closing date of their intent to sell and must include a copy of the proposed transaction reduced to writing in all respects. On receipt of such written notice, DVD may determine prior to the proposed closing date whether to exercise its right of first refusal set forth in this Article 13. If DVD elects to exercise its right of first refusal, DVD must notify the owner or Cotenant in writing of such election, and the purchase by DVD must be closed on or before the proposed closing date. If DVD fails to notify the Owner or Cotenant of its election to exercise its right of first refusal prior to the proposed closing date, then the Owner or Cotenant may proceed to close on the transaction with such bona fide third party. . . ."

 

[Tunseeker1]

But once they waive ROFR, they've waived it. They can't legally go back and change their mind just because the contract hasn't closed.

I never said they would change their mind. They can take up to the day of closing according to the covenents of the condo. They can delay deciding until then if they want, and that make make a difference in their answer.

 

[disneynutz]

I never said they would change their mind. They can take up to the day of closing according to the covenents of the condo. They can delay deciding until then if they want, and that make make a difference in their answer.

I usually see them take at least 30 days to decide on their ROFR, (IMO they want to worry the buyer), but I have yet to hear that they take more than 40 days even with an extended closing.

Bill

 

[ELMC]

As others have said this means a seller has a pending reservation and the contract can't close until they check out. Everything else is the same. For example, Disney still has 30 days on deciding on ROFR so you will still know in 30 days if Disney is buying the contract back or not even if you are not closing for 8 months.

Hope that helps.

Jason Erpelding
Lic. Real Estate Broker Associate
From The Timeshare Store, Inc.®

From the DVD paperwork. If you read the papers you got when you bought it is in the condo documents
From bay lake tower paperwork

I think I know who I'll believe here.

 

[Tunseeker1]

I think I know who I'll believe here.

I would talk to my lawyer and believe them.

 

[wdrl]

FYI - Aulani is different than other DVC resorts regarding how it handles pending reservations when a deed is being sold. If the buyer and seller agree, DVC will let the parties close on the resale transaction AND let the seller retain the reservation.