For Sale Now - Seller Can't Close For Six Months?

[Breyean]

There are at least a couple of resales posted on TSS where as part of the listed terms the seller won't close until November/December. One of these is for the resort and the # of points I'm looking for, so I called TSS and spoke with my guy there.

Turns out the sellers are using the contract for a vacation later in the year and will only close after that's completed. Makes sense, I guess, but why post it for sale now rather than closer to or after they return? The contract has all points coming when the next UY comes around, so they must have only used up to the last year's points.

In talking with TSS, I wondered why I, as a buyer, would want to lock myself into a contract for 6 months or so to buy a property that won't be available until then. Granted the asking price is OK, and who knows if I might be able to get it for a slightly lower offer.

But assuming the seller agreed to my offer, my deposit w/b sitting in escrow and I'd be committed to that purchase. The seller, from what I gathered, could say, decide after their vacation that they changed their minds and not go through with the deal. Since they have no money involved and no contract will have been signed, while I'd get my deposit back they would risk nothing,

So, tell me to just forget about this contract. Or tell me there's some way I would be SURE the seller actually goes though with the sale in 6 months after I've waited that long, possibly watching other attractive resales pass by me as I'm waiting for my deal to go though.

 

[JimMIA]

Those are questions you should ask your broker -- and you've got a VERY good one.

However, the seller will have some risk. Under Florida law, both parties have a right of recision without penalty for ten days after signing the purchase agreement. If the seller does, in fact, change their mind, they would owe the broker their full commission on the sale. If a buyer backs out after the recision period, they lose their deposit which is split between the broker and seller. So there's a little risk on both sides.

To me, the bigger risk to you would be that a cheaper, better, fits-you-like-a-glove contract might come along during the six weeks and you'd already be committed to this one.

The other thing that would worry me is the simple passage of time. A LOT can happen to either or both parties in six months. The possibility of something completely unexpected happening to someone during that six months is a significant risk for both parties, IMHO.

 

[JimMIA]

There is another option if you really like that contract. Remember that everything is negotiable in a resale.

You can make an offer for $XX per point, with all the other details, contingent upon them canceling the reservation and returning those points to the account. Depending on the UY, you may also want to specify that they then bank those points so you don't go past the deadline waiting for closing.

They may not want to cancel their reservation, and they may decline -- that's their prerogative. But they might do it if they're looking at an acceptable offer from a real buyer, as opposed to just brainstorming it in their own heads. Money talks, and when they have an actual offer in front of them, it may be in their best interests to accept.

 

[XGrumpy1]

I would say wait. In 6 months, prices could drop. That contract will probably still be for sale. There are a lot of contracts for sale and probably another one will come along

The whole ROFR process is hard enough without adding another complication. Do you really want to be in limbo for that long? How crazy will that make you?

I don't think it is worth it.

 

[Deb & Bill]

There is another option if you really like that contract. Remember that everything is negotiable in a resale.

You can make an offer for $XX per point, with all the other details, contingent upon them canceling the reservation and returning those points to the account. Depending on the UY, you may also want to specify that they then bank those points so you don't go past the deadline waiting for closing.

They may not want to cancel their reservation, and they may decline -- that's their prerogative. But they might do it if they're looking at an acceptable offer from a real buyer, as opposed to just brainstorming it in their own heads. Money talks, and when they have an actual offer in front of them, it may be in their best interests to accept.

Jim makes a very good point. The cash in their hands very soon vs after the first of the year, may be a good selling point. If they decline your offer, forget that one and look for another.

 

[DisDad07]

I say wait also. You have many Brokers out there that can help find a contract to fit your needs. Don't be afraid to just speak up and tell them what you are lookinf for, What Resort you want, how many points, what UY you are looking for, and what you would like to offer. Make it simple for you the BUYER.

 

[Sandisw]

We actually sold a contract with a delayed closing a few years ago. I was going to wait to list but the broker suggested putting it up anyway as there are sometimes people who don't mind waiting. They find what they want but don't need it right away and the delayed closing actually helps as some need the extra time to have the financing all set.

 

[JimMIA]

We actually sold a contract with a delayed closing a few years ago. I was going to wait to list but the broker suggested putting it up anyway as there are sometimes people who don't mind waiting. They find what they want but don't need it right away and the delayed closing actually helps as some need the extra time to have the financing all set.

We went just the opposite direction in the 3/20 runup.

I had a split trip planned -- two nights at OKW followed by three nights at Wyndham Bonnet Creek. We had our contract listed, with a "can't close until..." notation, however our close date really would not have affected anything because ROFR and the closing process would have taken longer.

But when I thought it through, I figured adding those 54 points back in and removing the "can't close until..." thing would make the contract more attractive. So I booked the two nights at WBC, canceled OKW, and within two days we sold the contract for a fair price.

I think you're right -- there are prospective buyers who don't mind waiting. But there are a lot more people who just want a nice, simple, straightforward deal.

 

[OrangeCountyCommuter]

I wouldn't bother to buy with that deal now and wouldn't bother to list mine unless I was willing to take a much lower price.

 

[Breyean]

Thanks for all the info.

Looks like someone else bought it today, so on to the next one!

 

[nukker7]

We actually sold a contract with a delayed closing a few years ago. I was going to wait to list but the broker suggested putting it up anyway as there are sometimes people who don't mind waiting. They find what they want but don't need it right away and the delayed closing actually helps as some need the extra time to have the financing all set.

This is exactly what we did. We signed in May and did not close until the following february. I had a dollar amount that I had to save up for and did it in those 9 months. Therefore I did not finance and that is satisfaction to me.

Sounds crazy and I do realize how things can go either way and change in a short period of time but, it did work out for me.

 

[Sandisw]

Just to expand on things for anyone else still thinking about these types of contracts, we signed the papers and it was sent to ROFR right away.

It passed about 3 weeks later and then it was 3 months until closing. So, everything is done ahead of time. The day after we checked out, we got word that the contract had officially closed.

 

[ACDSNY]

Just to expand on things for anyone else still thinking about these types of contracts, we signed the papers and it was sent to ROFR right away.

It passed about 3 weeks later and then it was 3 months until closing. So, everything is done ahead of time. The day after we checked out, we got word that the contract had officially closed.

We listed a contract for sale with a can't close until xx-xx-xx clause also, but it wasn't very far in the future so by the time ROFR was completed I think it was about a month later we closed.