Is this normal?

[Song of the South]

Okay, we did our first resale through a different company and it was lightening fast and trouble free. We just got our second resale contract from Fidelity and there is an addendum for an "additional 60 days" for the title company to close. So, the contract specifies that everything will be closed within 60 days (that seems reasonable to me) but the addedum then adds the potential for another 60 due to the title company. That seems unreasonable to me and I'm inclined to pass if it is required. In my mind that means we don't have to close until June!

Thoughts?

SotS

 

[JimMIA]

That strikes me as odd. The only significant delay should be waiting for ROFR, which takes less than 30 days. IF buyer and seller do their parts, you should be closed within a couple of weeks after ROFR approval. The initial 60 days should be ample time to close.

I'd check with some of the other brokers who can handle sales listed with Fidelity and see if their terms are better. (I don't think The Timeshare Store co-brokers, but other brokers do.) You may be able to get the same contract with better terms.

 

[GrnMtnMan]

My recent contract had a very vague clause that said the closing date could be extended by the title company. When closing date was drawing near, and they sellers had not yet delivered their documents, I contacted the title company to see under what circumstances it would extend the closing beyond agreed upon closing deadline. I never got a legal-ese answer.

Maybe they're throwing the 60 day thing in there instead of the vague clause that was in my contract.

My thought is that that timeline is unacceptable. A few days if they have an unexpected burst of closings, sure, but if the title company has a 60 day backlog of closings, then they need work late, or on weekends, or hire more workers.

I was not a fan of the title company I used. My complaints are here.

Remember, if they have this 60-day window and they have your purchase funds then for quite a long time you could have neither your money nor your new points.

 

[KAT4DISNEY]

From my experience they all have something in there like that in order to cover unforseen circumstances. We've used fidelity once and the contract closed very quickly. I don't believe they want to extend anymore than you do but if something were to happen then you could be extended.

 

[Song of the South]

I went ahead and emailed Sharon that we were happy with the contract but would not sign the additional 60 days. Since the contract already has language about delays this seems excessive to us. We will see what comes. I guess back to the shopping.

SotS

 

[Song of the South]

She said we don't have to sign the addedum but that if day 61 comes the seller could back out without any recourse by us. I guess my understanding was that we, as the buyer, pretty much have no recourse should the buyer back out, at any point, other than getting our deposit back. Am I wrong?

Thanks!
SotS

 

[zeferjen]

There is someone over on another message board that had a seller attempt to back out. After threatening to sue them in small claims, the sale looks like it is now proceeding.

 

[GrnMtnMan]

She said we don't have to sign the addedum but that if day 61 comes the seller could back out without any recourse by us. I guess my understanding was that we, as the buyer, pretty much have no recourse should the buyer back out, at any point, other than getting our deposit back. Am I wrong?

Thanks!
SotS

Depends on your contract.

You probably have a clause in it that says what happens if you as the buyer fail to live up to the terms of the contract. My contract included language at the end of that clause that said that if either party breached, the breaching party would be responsible for paying the sales broker the expected commission.

But bottom line is that you as the buyer would have no recourse....you'd just get all of your money back.

 

[Song of the South]

We went ahead and signed the contract. Hopefully, everything goes smoothely! We did not sign the additional 60 day addendum. If the buyer pulls out, we'll find a different contract. Better to do that then have our money tied up needlessly.

Here's to a smooth ride from here!

SotS

 

[wdwnomad]

I had that rider too and did not sign it. After have two previous contracts fall part the sellers end I was in no mood to play games again. I told the broker that if the sale wasn't closed by the date in the contract then we could discuss extending the date if the situation warranted it. I wasn't giving anyone a free ride.

I also thought what was the point of having a contract with one date and an addendum with another date.

 

[rock_doctor]

I wonder is this clause is more to cover sellers in other countries??? I would do what the OP did but be sure to get all paperwork back asap. Then at least you are acting in good faith. You can only hope the seller will do the same. If i remember correctly a while back Fidelity had an issue with a seller in England or some place like that and they almost refused to get the paperwork notarized due to some weird thing where it had to be notarized by a US notary. I remember we suggested they go to a US bank there or the US consulate... I suspect this clause is to cover that type of issue. Do you know if your seller is here in the US or another part of the world??

 

[GrnMtnMan]

I wonder is this clause is more to cover sellers in other countries??? I would do what the OP did but be sure to get all paperwork back asap. Then at least you are acting in good faith. You can only hope the seller will do the same. If i remember correctly a while back Fidelity had an issue with a seller in England or some place like that and they almost refused to get the paperwork notarized due to some weird thing where it had to be notarized by a US notary. I remember we suggested they go to a US bank there or the US consulate... I suspect this clause is to cover that type of issue. Do you know if your seller is here in the US or another part of the world??

These title companies and sales brokers really need to work on personalizing their service a bit. It very could be that the extra time is needed for an international seller. But why not inform the buyer of that? Why not customize the documents to the situation?

 

[Song of the South]

I agree that some customization would be smart! For instance, if the seller has to pay off financing and might need longer to get the $$$ together or has to jump through insane international hoops. WDWNomad, yes! Why not just put an extended date into the contract? Why the need for extra paperwork?

We actually got a call this morning to find out if we were going through with the purchase. That was surprising since we had faxed the documents and the cc authorization form days ago. She made a comment that now she would just have to get the sellers documents. They do have until tomorrow but that comment gave me pause. Oh, drama! Thanks for keeping things interesting!

SotS