"Notice of Commencement"....

[DisBuckMan]

I'm no real estate professional, so I'm asking in hopes that some of you are.

So, I passed ROFR yesterday. When doing so, of course they send you the notice from Disney that you passed, which includes you specific percentage of the specific unit that you're buying.

So, being curious and bored at work last night, I went and played around on the OC Comptroller's website, just to get a little background on the property and/or seller. The seller has bought/sold several DVC's in the last few months, which is all fine and dandy. In reality, it's an investment, whether viewed as long-term or short-term.

On the seller's records at the OCC's office since 9/2/15, there are 6 "Notices" and 2 "Deeds" recorded. The "Notices" are simply the ROFR's from Disney, and of course the 2 "Deeds" are exactly that....deeds recorded.

That said, the "Notice" on the property I"m buying is listed as "Notice of Commencement", which I know generally means that there is a lien on the property. When you view the document, it's simply the ROFR just like the other ones which are simply labeled "Notice". Is this something to be concerned about?

Also, the date of the "Notice of Commencement" on the property that I'm buying is 9/10/15, and there's no deed recorded yet...is this also something to be concerned about...at least from the standpoint of delaying my purchase?

 

[wdrl]

OCC posts records to its website on a real time basis, but it takes anywhere from one to five workdays before it proofs all records. Until the records are proofed, a search for a record will (usually) show "Workflow Status: This document is being processed. The information displayed is subject to change."

The Document Search screen will show the date through which records are proofed. The date will appear in the upper left hand margin of the Search screen. As of Saturday, October 31, 2015, OCC documents are proofed through October 28, 2015.

Occasionally, the OCC website will have some documents mislabeled. A document that should be labeled as a "Notice" is erroneously labeled as a "Notice of Commencement" or as an "Affidavit." Most mislabeled documents are corrected at the time OCC proofs the documents.

In OCC parlance, a "Notice of Commencement" does NOT mean there is a lien on the property. True Notices of Commencement mean that the property owner (Disney, in this case) is making a repair, refurbishment, or renovation on the property. DVC deeds that have liens will have with a "Lien", a "Lis Pendens" (legalese for intent to sue), and/or a "Judgment."

On DVC resale transactions, the "Notice" (which is the Notice of Waiver of Right of First Refusal) is filed and recorded the same time as the "Deed" (which is a warranty deed transferring ownership from the seller to the buyer. Both of these documents will normally be recorded shortly have the closing on the resale transaction.

If you just passed ROFR yesterday, then I would not expect to see your "Notice" and "Deed" recorded with OCC for a few weeks.

 

[DisBuckMan]

In digging further....

The previous owner of the property (the owner prior to the seller I'm purchasing from) was placed "in rem" foreclosure as of the 8th of June this year, as evidenced by a "Lis Pendens" on this specific property filed with the OCC's office on 6/16/15.

Then, he shows as the "grantor", or seller, on the property to the seller I'm buying from on that ROFR paperwork dated 9/10/15.

Is that even possible, for the property to have been foreclosed on in June, and he's selling it 3 months later in September?

 

[mtm65]

Just curious, did you purchase from a realtor or private? Are you using a closing company?

 

[DisBuckMan]

Just curious, did you purchase from a realtor or private? Are you using a closing company?

I'm purchasing through a realtor and I am using their closing company.

Maybe it's just nerves, but this doesn't look exactly right to me.

 

[mickeyman]

I would ask your closing company about it

 

[supersnoop]

I'd guess that Disney began foreclosure proceedings and the member either paid up or declared bankruptcy, putting everything on hold for a few months. Could this be a court-ordered bankruptcy sale?

 

[DisBuckMan]

It's possible, snoop. After poring over documents from the OC Comptroller's office and following the paper trail, as well as getting some much appreciated help via pm from a fellow Dis'er (won't disclose who, but if he wants to take a bow in this thread, that'd be great), I think we've kind of pieced it together mostly. In short, I think it should be ok. The property was not long ago involved in a foreclosure, and was recently purchased by the individual that I'm purchasing from. There is a warranty deed for the sale on the OCC website...it was hidden inside a multiple property sale contract on the website. So, I think it will be ok, but on some very good advice, I'm calling my broker on Monday to have them contact the court to verify that there are no liens arising from the bankruptcy on the property...since court records do not reflect the count against the property being dismissed.

 

[disneynutz]

Some people buy foreclosures and resell them as a business. Good chance that this is what the OP bought.

Bill

 

[DisBuckMan]

Some people buy foreclosures and resell them as a business. Good chance that this is what the OP bought.

Bill

I agree Bill, and that's what I alluded to in my original post. However, upon further digging, according to the warranty deed posted on this property, the seller I'm buying from bought 3 different properties from the same seller (mine included) at SSR at the same time a month and a half ago for about $105/pt...which is of course way out of whack for both what SSR sells for, and of course way, way more than what I'm paying for it.