Just Canceled My Resale Contract

[njanimalkingdom]

About a month ago we agreed to purchase a resale contract @ a very fair price. After we passed ROFR, we recieved the closing docs along with where to wire the funds to. I wired the funds on a Tuesday afternoon. On Wednesday morning I get an email from the agent saying they were just informed by Disney that the seller has an existing reservation that ends July 18. When I found this out I was quite annoyed. I found it quite interesting that less than 24 hours after I wire the money I find out the seller can't close for another month. The listing and contract never said that we had to wait until July 18th to close. The agent blamed Disney saying they should have picked this up earlier. I don't see how it is Disney's fault, shouldn't the seller disclosed this to the agent when listing. I told the agent that we had a problem with the way this was handled and told her we would go ahead and wait if the Seller gave us a discount. After a few emails and phone calls to the agent I finally get a response that the sellers are nice people and are very upset with what happened but no discount. Again the agent blamed Disney. After asking the agent a few times can I get all of my money back, she reponded yes. The money was wired back to us tonight.
Does anyone else feel the same way or would you have waited?

 

[corky441]

Where were those points that the seller had used for their upcoming trip?
I think you were wise to pull out of the deal. There is another contract out there waiting for you

 

[florep1]

I don't blame you. FULL DISCLOSURE is what I would have expected. Glad you got your money back though.

 

[njanimalkingdom]

The points that the seller was using were not included in the sale.

 

[ACDSNY]

I would have pulled out too because I wouldn't have faith in those I was dealing with. I'm sure you'll find another contract that's right for you.

 

[DebbieB]

That was pretty underhanded by the seller. Glad you stuck to your guns, they should have offered a discount. The agent should have picked it up, they should have offered you something back, now they have to put it back up for sale.

 

[CarolMN]

IMO, the sellers should have disclosed that closing could not take place until after their last stay was completed.

But assuming I was happy with the over all deal and nothing impacting that had changed, I would have pulled out only if I needed to close prior to then or had changed my mind about buying points. Closing in July would certainly be faster than starting all over. No sense cutting off my nose to spite my face, LOL.

Kind of wondering if the sellers had to pay commission since it technically was their fault that the deal fell through. Maybe one of TSS reps will post their policy in such cases just to satisfy my curiosity.

 

[disneynutz]

If the price, resort, and number of points were what I was looking for, I would have kept the deal.

Bill

 

[DenLo]

IMO, the sellers should have disclosed that closing could not take place until after their last stay was completed.

I would have thought so. And Disney is right that the closing cannot take place until after the reservation. What I'm amazed at is that the resale agent(s), seller's agent and buyers agent, didn't tell the buyer up front about this delayed closing. Or yet, why didn't the resale agent know about it?

 

[tomandrobin]

Well, considering that you still had to go through ROFR you would be 5-6 weeks out from closing anyway. Also, if the points for the reservation were not included in the sale price, I see nothing wrong other then failure to give full disclosure.

 

[KAT4DISNEY]

Well, considering that you still had to go through ROFR you would be 5-6 weeks out from closing anyway. Also, if the points for the reservation were not included in the sale price, I see nothing wrong other then failure to give full disclosure.

According to the OP's first post they had already passed ROFR and sent their final funds before they learned they could not close.

It was not full disclosure by the seller for certain OP and I can understand the decision to back out. If the contract otherwise worked for me I probably would have stuck with it. I would not have been happy to learn of such a significant restriction though.

Having the agent blame Disney does not seem inappropriate. At least Disney did catch it for the sellers sake. The seller could just as likely have had the closing happen and the reservation cancelled from what I've heard. That sounds more appropriate since they didn't have the restriction on closing as part of the agreement.

 

[PoohNFriends]

I didn't buy resale, but I have bought twice thru Disney and a house; as I recall isn't the closing date usually on the initial paperwork that you get to sign? I realize it may change as the date gets closer but, if initial resale paperwork as an estimated closing date I'm wondering if the closing date was for after July 18 or if it had an earlier date? Either way, if you aren't in a hurry to buy to be able to make a reservation, then I say you did the right thing. Hope it teaches the sellers a lesson to provide full disclosure about everything that may affect the transaction.

 

[JimMIA]

I would have cancelled the transaction, and I'd also be changing brokers.

The owner was not forthright in their disclosures, and they certainly knew they had a pending reservation and could not transfer their ownership until that was completed.

The broker (whoever they are) was negligent in not knowing the details of a contract they were selling. I'd be worried what ELSE they don't know...what other representations they've made will not turn out to be true.

It's a buyers market and there are plenty of contracts and brokers out there. I'd be moving on from both.

 

[Dean]

A month to close is not unreasonable but it should have been disclosed. This is likely on the sellers. I wouldn't expect DVC to worry about it until the got a contact for the estoppel letter which is likely what happened in this case.

 

[nunzia]

I had an existing reservation with some points I was selling, and the broker caught it. BUT...I had forgotten that I had had used the points I was selling to upgrade a studio stay to a 1 br, so this could have happened to us. As soon as the agent mentioned it, I remembered that I used my OKW points to do the upgrade at VGC. There was no way the contract could have closed before I finished my reservation, but I still felt bad for not remembering I had a reservation pending on the points. We took our trip mid May and the deal closed about 3 weeks later. Now, I understand this was a mistake on both the seller's and the agent's part, but it sounds like all it did was keep you from using the points for about a month (did you say you were supposed to close now and now you can't until July 18?) So, all you're really out is interest on that money for a month and the ability to use the points for a month, which I can see would be a bother but not a disaster. If I really wanted that particular contract (good price, right use year, etc) I would have still gone ahead with the deal.

 

[LouisianaDisneyFan]

The broker (whoever they are) was negligent in not knowing the details of a contract they were selling. I'd be worried what ELSE they don't know...what other representations they've made will not turn out to be true.

This is also worrisome to me. It was my understanding that the broker was supposed to verify the details of the contract with Disney before listing a property. With our very first resale, we were informed of a property "coming available" that met our criteria. The agent told us that it would be a few days before we could submit an offer as the property would not be officially listed until verification came back from Disney regarding the details of the contract. Was this step skipped by the agent in your transaction?

 

[LaurenT]

If the points that family were using were not part of the contract, and you were not in a hurry to make a reservation - I don't see what the big deal is...
The original owners probably figured they'd take one last vacation with points they were not including and never imagined the deal would happen so quickly that their reservation would be a problem.
I don't think it was underhanded...if it was a very fair price as you say, and you were in no particular hurry, I would have just waited.....

 

[Maistre Gracey]

I always thought the contract would close and reservations would be cancelled without warning..??

MG

 

[JimMIA]

I always thought the contract would close and reservations would be cancelled without warning..??

MG

It would ordinarily, provided the seller sent their closing paperwork back. However, if they were withholding the paperwork until they complete their reservation, the transaction could not close.

 

[eliza61]

Basically I one of those people who find it very hard to be comfortable when I don't trust the party I'm dealing with. Piece of mind is pretty important to me especially when dealing with large sums of money.
So, yes I would have pulled out. I can't totally let the agents off the hook either, some one should have let you know that closing would have to be defered.