Resale Closing Documents Question

[Steph01002]

Hi!
We got our closing docs today and I have a concern in the document. I was just wondering if any others had a contract the stated "All scheduled vacations remain with the seller". We have a delayed closing, so I assumed that the sellers have a vacation planned sometime before our closing date in October. That's fine and expected, but that statement makes it sound like they could have a vacation scheduled after our closing date since it is in our closing documents. I just wanted to see if this is in other contracts. Our title agency is an attorney and not the "big names" I see on here all the time.
I do have an email into them, but I wanted to see what other resale buyers have experienced.
Thanks!

 

[disneynutz]

Can you contact your broker and ask them for specifics?

Bill

 

[cvjw]

Once the contract closes, Disney cancels any outstanding reservations with the contract.

 

[Matty B13]

Once the contract closes, Disney cancels any outstanding reservations with the contract.

Not necessarily, someone on the "Closing" thread is currently having an issue with a former owner booking a cruise the day of the closing.

 

[cvjw]

Not necessarily, someone on the "Closing" thread is currently having an issue with a former owner booking a cruise the day of the closing.[/QUOTE

Wow, you learn something new everyday! Had no idea this was even a possibility!

 

[Steph01002]

That closing thread post which mentioned the seller booked a cruise on their closing day is what threw up the red flag for me when I read "All scheduled vacations remain with the seller". I'm waiting for the closing company/attorney to email me back and will call them this afternoon if they don't respond sooner. I figure the attorney's office drafted the documents, so I would ask them first. I should probably see what the broker says as well. I just want to make sure there are no surprises and we're without money waiting for our membership. I did not know if this was "normal" wording in a contract which would really just cover a trip that could be already scheduled in between receiving the closing docs and our actual closing date. We don't have points coming until February 2018 in our contract, so if they used 2017 points for a trip in the first half of October, that's cool. I just want to make sure they can't do the sneaky cruise thing mentioned on the closing thread due to the wording.

 

[Matty B13]

Might want to add a date to the addendum about the "Vacation Dates" and maybe add that full payment won't be made to seller until points are loaded into your membership account and held by the closing company.

I'm sure the closing company and broker won't like it, but might want to insist on it.

 

[Spartan86]

FWIW, we purchased a stripped contract, signing appx a year prior to the start of our first use year. I have no idea when or how the owners used the points - they put 4 contracts up for sale at once totaling about 625 points, same use year and all were stripped. Anyway, at a glance we did not have language like yours in our contract. But I wouldn't be surprised your language is "standard" for your closing agent. I surely agree with you wanting some answers about it.

 

[CraigInPA]

I would amend the wording to say "All scheduled vacations before the closing date remain with the seller. Seller agrees to conclude all vacations before the closing date."

 

[Steph01002]

Matty B13 - Thanks for the idea to include a date to the vacation dates.
I did get an email back saying they verify the contracted points with Disney and that there are no existing reservations scheduled after the closing date, but I still feel like the wording in the closing documents would give a seller a loophole for any "non-contracted points" they might have to schedule a vacation before membership is transferred.
I really want to sign the paperwork and attach that check, but my gut is saying to figure out how the contract could be interpreted to cover ourselves first. I'm sure our seller's are great people (aren't all DVC members!), but there's always that small percentage like mentioned on the closing thread.

 

[cvjw]

I am currently selling a contract and this is in the official contract:

10. SPECIAL CLAUSES (BANKED POINTS, CURRENT POINTS, ETC.) THERE ARE 200 POINTS COMING MARCH 2019 AND FORWARD. IF THERE ARE LESS POINTS THAN WHAT IS STATED IN THIS CLAUSE AT TIME OF TRANSFER, THERE WILL BE AN $18 PER POINT COMPENSATION FROM SELLER TO BUYER OR BUYER MAY CANCEL THE CONTRACT.

Maybe you need something like this to cover yourself in case the buyer tries to use the points on the last day

And I will just have to add that it is a sad day when the seller of the points uses all the points on the day before closing to book a cruise. Unless DVC accidentally used the wrong points, there is just no excuse for this.

 

[Matty B13]

I am currently selling a contract and this is in the official contract:

10. SPECIAL CLAUSES (BANKED POINTS, CURRENT POINTS, ETC.) THERE ARE 200 POINTS COMING MARCH 2019 AND FORWARD. IF THERE ARE LESS POINTS THAN WHAT IS STATED IN THIS CLAUSE AT TIME OF TRANSFER, THERE WILL BE AN $18 PER POINT COMPENSATION FROM SELLER TO BUYER OR BUYER MAY CANCEL THE CONTRACT.

Maybe you need something like this to cover yourself in case the buyer tries to use the points on the last day

And I will just have to add that it is a sad day when the seller of the points uses all the points on the day before closing to book a cruise. Unless DVC accidentally used the wrong points, there is just no excuse for this.

Some brokers use this in their contracts but most don't have this language. I think DVC Resale Market is the only broker that I have used that had this in their contracts. I wish more brokers had it in theirs.

Sellers who use points after closing should have their Mickey Ears surgically removed.......

 

[Steph01002]

I talked to our broker and feel better about the transaction. The broker said that they will not close if the points aren't all there. Only one time in their history have they had a problem and it was because the seller had multiple contracts and the wrong contract points were pulled for their trip. And it was fixed immediately. I guess we'll sign and hope for the best. Our broker is going to send us the seller's point confirmation to ease my nerves. I'm sure it is an extremely rare occurrence of having an issue, but I like to have all my bases covered.

 

[Matty B13]

Unfortunately, unless the Title Company holds the buyers money in escrow (which I don't think they can do) until after DVC transfers ownership, buyers have to put a lot of faith in the seller not to use the points. I believe in the past year this has only happened twice.