How does a delayed closing work as a buyer?

[Jlo85]

I'm interested in a delayed closing contract towards the end of this year, but I was wondering how this works?

1. I'm assuming only my deposit would be due now, and then the remainder would be due when we close?
2. Does ROFR happen now, or at closing?
3. I'm assuming I'm kind of locking in my price now, and whether prices rise or drop wouldn't really impact me?
4. Do these delayed closing contracts tend to hold or fall through? Just worried that it's more time for things to fall apart.

 

[Matty B13]

Unless the delayed closing happens in the next month or two (April or May) don't bother with the contract, another one will come up that probably is just as good. Also, since prices seem to be dropping, you might lock in at a higher price than the price at closing.

Also, the seller could walk away at any moment before closing (even with a signed contract) and leave you with nothing. Yes you will get your deposit back, but you will have lost all that time.

 

[Sandisw]

I have bought and sold a few. The ROFR process happens now and your deposit is it, you will then pay like normal…at closing time. Documents usually come about two weeks prior to the close date.

The plus is that if you see something you want and need the extra time to save up the funds. You lock in and are set. The minus is that if prices drop, you may be paying more than a potential contract later on.

We have not had more reports of issues of delayed closing than others…lately, we have seen some delayed closings not having been disclosed and owners fighting that.

 

[Jlo85]

I have bought and sold a few. The ROFR process happens now and your deposit is it, you will then pay like normal…at closing time. Documents usually come about two weeks prior to the close date.

The plus is that if you see something you want and need the extra time to save up the funds. You lock in and are set. The minus is that if prices drop, you may be paying more than a potential contract later on.

We have not had more reports of issues of delayed closing than others…lately, we have seen some delayed closings not having been disclosed and owners fighting that.

Thank you! This was my thought - take advantage of the sleeping ROFR monster and still have lead time to save up money.

 

[AnnaKristoff2013]

Thank you! This was my thought - take advantage of the sleeping ROFR monster and still have lead time to save up money.

I suspect the ROFR monster isn’t waking up anytime soon.

 

[Cfabar1]

Hulu is an expensive meal to devour…. I think the monster is busy….

 

[DonMacGregor]

For me, a delayed closing didn't work. I had a super great deal on a semi-loaded 200 point contract at SSR back in early May of 2021. Closing had to be after 10/21, due to an existing reservation. Right around the end of June, I lost patience, cancelled the deal, and bought 150 points direct from Disney (most of which I banked into 2022). Yes, I lost my $1,200 deposit, but by the time 10/21 rolled around, I already had two trips to WDW booked, and had snuck in on a 2-day stay in a studio at VGC (dumb luck and I'm local).

 

[Carouselofplanning]

Unless the delayed closing happens in the next month or two (April or May) don't bother with the contract, another one will come up that probably is just as good. Also, since prices seem to be dropping, you might lock in at a higher price than the price at closing.

Also, the seller could walk away at any moment before closing (even with a signed contract) and leave you with nothing. Yes you will get your deposit back, but you will have lost all that time.

I know I’m waking a very old post, but came across this while researching delayed closings, ROFR etc.

If the seller walks and the price of contracts goes UP during the delay those are called breach of contract damages. Sellers should not be mislead that walking away is always consequence free.

 

[DonMacGregor]

I know I’m waking a very old post, but came across this while researching delayed closings, ROFR etc.

If the seller walks and the price of contracts goes UP during the delay those are called breach of contract damages. Sellers should not be mislead that walking away is always consequence free.

What usually happens is that the buyer sees a better deal in the interim (either due to prices in general going down, or a Goldilocks contract popping up for sale) and is stuck with either sticking with the less-appealing original contract or losing their deposit. It's almost always the buyer that loses, purely because they have that deposit hanging over their head.

I'm not sure how the seller would be injured though. If they walk away, they lose nothing. I've walked away, and the only consequence was an earful of grief from the broker because it takes a lot of work on their part to get a listing up and ready for sale. If prices go up during the delayed close (which virtually never happens, except in the rare case of a resort selling out and direct pricing going up through the roof), then they simply cancel the sale and re-list the contract at the higher price per-point.

*** Sorry, hit reply before I was finished with the post.

 

[Sandisw]

I know I’m waking a very old post, but came across this while researching delayed closings, ROFR etc.

If the seller walks and the price of contracts goes UP during the delay those are called breach of contract damages. Sellers should not be mislead that walking away is always consequence free.

The seller would still owe commission to the broker.

And while a buyer could attempt to go after a seller who changes their mind, my guess is the cost to do so would be more than any buyer would want to pay for a timeshare.

Most often, though, the prices don’t fluctuate enough during a delayed close,,,if done 4…two as seller and two as buyer,,.for there to be any real damage.

Even brokers may not go after a seller for commission if the back out.

 

[RichVIII]

I certainly applaud saving up to buy your contract. I think the market is finicky, ROFR monster is pretty sleep and locking in a price with prices sagging at the moment to me isn’t worth it. Inventory is certainly down which may hold things up a big but unless this is the Goldilocks contract you have been waiting for, I would wait. All that to be said, my wife has approved another purchase, and that could always so change, so I am buying now. Ha ha ha

 

[Carouselofplanning]

I certainly applaud saving up to buy your contract. I think the market is finicky, ROFR monster is pretty sleep and locking in a price with prices sagging at the moment to me isn’t worth it. Inventory is certainly down which may hold things up a big but unless this is the Goldilocks contract you have been waiting for, I would wait. All that to be said, my wife has approved another purchase, and that could always so change, so I am buying now. Ha ha ha

Amen to that! She gave the green light: Get into contract ASAP!!