Missed closing date

[hblackb]

My closing date (1/8/15) listed in my contract is approaching fast. I'm being told it is being held up by Disney. They are unable to verify the sellers available points to the Title company due to Disney system issues the last two weeks.

So my question is, if we do not close by the date set in the contract can I walk away from the deal? I am rethinking my resort selection, wouldn't mind restarting the process on a different resort.

 

[Msmithmd]

Yes.

But be aware that rather dramatic classic resort price increases are reported to be enacted by Disney for direct purchase in the next few days.

Those may or may not then be reflected in the resale price market-but if suddenly the resale market shoots up $15-20 across the board, you might regret walking away from a deal that's almost complete. Worth considering before you pull the trigger.

 

[drusba]

Whether you can now back out of the contract due to a delay caused by Disney and get back any money you have already paid in depends on the particular terms of the contract you entered into and the particular facts relating to the delay, and such legal advice should not and cannot be given on these boards, particularly based on the minimal information you have thus far provided. In this kind of situtation you actually face two issues, one legal and one practicable. The legal issue is whether you can terminate the contract and get back any money you have paid in. The practicable issue is whether the other side, including the broker, is going to agree with your position on termination because if they don't, you may be facing having to spend money hiring a lawyer to get back any money you have already paid in.

 

[FindingMerida]

My closing date (1/8/15) listed in my contract is approaching fast. I'm being told it is being held up by Disney. They are unable to verify the sellers available points to the Title company due to Disney system issues the last two weeks.

So my question is, if we do not close by the date set in the contract can I walk away from the deal? I am rethinking my resort selection, wouldn't mind restarting the process on a different resort.

Ah, this would explain our delay too. It's 4 weeks today since we passed ROFR and still no closing documents

Might be worth a chat with your resale agent to see where you stand. I too think resale prices might go up a little with Disney's new prices for sold out resorts. They seem to have ROFR a few surprising contracts recently too so we're just going to have to wait it out

 

[Minniesgal]

I'm not so sure you can just back out now since your issue closing isn't with either the seller or the broker. If the delay was due to seller not returning paperwork etc it would be more clear cut but to back out due to a delay cause by disney I'm not entirely sure you'd get your deposit back.

Before you do anything you need to read your contract carefully, speak to your broker and maybe even a lawyer.

 

[rlduvall]

I am not an attorney, do not play an attorney on television, nor have I stayed in a Holiday Inn BUT, I'm not convinced you could "legally" rescind this contract in light of the fact it isn't the seller's fault.

I also don't think it's "morally" proper either. The seller, through no fault of their own, will be forced to go back to the drawing board and wait for another buyer. It's quite likely that there would have been other potential buyers who might have been interested during all this time.

 

[hblackb]

I am not an attorney, do not play an attorney on television, nor have I stayed in a Holiday Inn BUT, I'm not convinced you could "legally" rescind this contract in light of the fact it isn't the seller's fault.

I also don't think it's "morally" proper either. The seller, through no fault of their own, will be forced to go back to the drawing board and wait for another buyer. It's quite likely that there would have been other potential buyers who might have been interested during all this time.

My thoughts exactly, the seller is the only reason I will probably not try and back out. My frustration stems from the Broker and Title company. Their lack of communication or urgency (except having me sign the contract and send my money) has frustrated me during the whole process. The only reason I found out about the Disney delay, was that I called them. I called the broker, she told me to contact the Title company (No help at all). So I did, and after a day they came back and told me the contract sat for over two weeks, I would have hoped they would have sent an email explaining the situation earlier, without me hounding them. They are the reason I was thinking about walking away. But like you mentioned it may not be worth the fight.

Thank you for the replies.

 

[Msmithmd]

Curious, if you don't mind saying- which broker and title company are you using?

 

[hblackb]

Curious, if you don't mind saying- which broker and title company are you using?

I would rather not say, but I can tell you it is not a broker that is a sponsor of the DisBoards.

 

[bellablue2]

contracts generally have a clause about this that covers such issues. generally, one cannot walk away because of disney delays.

and then there's karma....

 

[newfangled]

Hopefully it works out soon. We passed ROFR on 12/2 and just received our closing docs today. We'll just make it on time for our 1/12 closing deadline.

 

[hblackb]

Hopefully it works out soon. We passed ROFR on 12/2 and just received our closing docs today. We'll just make it on time for our 1/12 closing deadline.

Thank you and Good Luck! We passed ROFR on 11/20, received our closing docs on 12/5.

 

[FindingMerida]

And after my mini rant yesterday, we received our closing documents last night

Hope you hear something very soon OP

 

[rfc0001]

Closings for timeshares are very loosey goosey -- why the good resellers give approximate timeframes for how long it takes to receive closing docs, for title company to close, for documents to be transferred to Disney, etc. Here is what DVCResales quotes:

Timeline for the purchase and sale:

1. Contracts emailed to buyer and seller
2. Contracts returned by buyer and seller, each will receive a copy
3. Contracts sent to Disney for ROFR (30 days)
4. Sale approved by Disney, closing docs prepared (10-14 days)
5. Closing documents emailed to buyer and seller
6. Sale closed, sent to Disney for transfer (10-14 days)
7. Seller's proceeds disbursed after transfer
8. Disney will mail membership # to new owners (7-10 days)

Having just gone through this, there was no closing "date". We just got the document and had to notarize them and return them, along with funds to close. The sooner they get everything the sooner they can close, but it's not like a house where everything has to be done on a specific date.

 

[beadel]

We have had the exact same problem and we were told the very same thing. Our escrow agent said they have resorted to having the sellers somehow verify the points from there dvc member site. Apparently, it went to Disney on Tuesday of this week. We purchased the property on the first of November. Waiting has been difficult as we want to reserve for a July 20 family vacation.

 

[hblackb]

We have had the exact same problem and we were told the very same thing. Our escrow agent said they have resorted to having the sellers somehow verify the points from there dvc member site. Apparently, it went to Disney on Tuesday of this week. We purchased the property on the first of November. Waiting has been difficult as we want to reserve for a July 20 family vacation.

I am hoping you get the reservation you were hoping for. Since, I am in the same boat I feel for you. I was hoping to book a 4 day stay in late Aug. at my home resort before going on a Cruise. I thought it would be fun to take two trips with one airfare. My in-laws are coming with us also, so I would have liked to get a 2 bedroom, not sure that will happen now.

My closing date has come and gone with no close. Very unhappy with the my Broker and Closing agent. I will be sure to write up a review of them and timeline once I close. Just waiting for the close to happen first, don't want to find myself being pushed back anymore.

Good Luck!!!!!

 

[jessicasmileycat]

My husband and I are trying to buy our first contract and find ourselves in a similar situation of having missed the estimated closing date and the "final close by" date. This was not due to Disney but by the seller's notarized documents getting rejected by the title company for not being clear enough. Add in Thanksgiving, Christmas and New Years and we had to sign an addendum stating we were still interested in the contract. Our sales agent said that Disney ROFR waiver actually expired on that final date and they can technically take the contract! Has anyone heard of this before?

 

[jessicasmileycat]

My closing date (1/8/15) listed in my contract is approaching fast. I'm being told it is being held up by Disney. They are unable to verify the sellers available points to the Title company due to Disney system issues the last two weeks.

So my question is, if we do not close by the date set in the contract can I walk away from the deal? I am rethinking my resort selection, wouldn't mind restarting the process on a different resort.

Closings for timeshares are very loosey goosey -- why the good resellers give approximate timeframes for how long it takes to receive closing docs, for title company to close, for documents to be transferred to Disney, etc. Here is what DVCResales quotes:

Timeline for the purchase and sale:

1. Contracts emailed to buyer and seller
2. Contracts returned by buyer and seller, each will receive a copy
3. Contracts sent to Disney for ROFR (30 days)
4. Sale approved by Disney, closing docs prepared (10-14 days)
5. Closing documents emailed to buyer and seller
6. Sale closed, sent to Disney for transfer (10-14 days)
7. Seller's proceeds disbursed after transfer
8. Disney will mail membership # to new owners (7-10 days)

Having just gone through this, there was no closing "date". We just got the document and had to notarize them and return them, along with funds to close. The sooner they get everything the sooner they can close, but it's not like a house where everything has to be done on a specific date.

Here is a timeline of our sales.

(10/17) Contracts sent and returned for agreement of sales
(10/21) In escrow
(11/6) ROFR waived by Disney
(11/25) Closing documents and final monies sent by buyer
(12/1) Buyers documents recieved by title company, closing started
(12/17) Sellers documents recieved by title company
(12/19) Estimated closing date by original contract- seller's documents get rejected by title company for not being clear- seller has to redo and renotarize documents*
(1/3) Disney's waiver of ROFR expired

(1/3) Addendum sent stating buyer still interested in contract**

* Buyer now in position of backing out of contract due to seller delays
** average resale contracts up $5 since beginning process with same number of points/ seller paying MF, 2014 points banked

Still waiting

 

[bellapecas]

If your Broker is Shawn Ray at Fidelity, I'm not surprised at the lack of communication. So sorry for the delays.

 

[newfangled]

Missed our closing date too...

The observation that ROFR has been quicker, but Estoppel taking longer held true for us.

Offer Made/Accepted 11/17
ROFR Waived 12/2
I received docs for my signature for closing - 1/6

So that 10 to 14 days turned into over a month (granted holidays were involved too).

Closing should have been by 1/12, but we understand the seller is having things notarized Monday and will mail them after. So 1/12 will not happen.

Good thing these are dates aren't concrete. I'll be happy to get it done though. We have a cash reservation at Wilderness Lodge (two rooms) for April 26-30 I had been hoping to change to our first DVC stay (2 studios or a 2 BR). The likelihood of getting a DVC room we will be happy with is getting slimmer by the day. We just happen to be taking first timers (friends from out the country) so may keep the cash reservation to make sure we can give them the experience we hoped to.

I may wait list once the points are loaded....no idea what availability looks like since this is our first purchase.