Resale closing questions!

[work2play]

I just received documents on a resale that I am attempting to purchase (my first one!!). I am new to DVC and I know that many of you have purchased on the resale market, and will have an opinion/advice on these two items! Not looking for a legal opinion, just what you did!

Item #1: There is an option for either a "full closing", which includes a title search and title insurance (this options is $75 more) or a "deed only closing". I am not financing this transaction, so is paying the extra $75 something I should be doing??

Item #2: There is an addendum to the contract to allow the title company to extend the closing date by an additional 60 days (there are 60 days already in the base contract!), it states: "should the title company need more time to produce a clean and clear title to the buyer". Yikes, who would agree to be locked up for 4 months!!

Are these common?

Thanks for your help!!

 

[Sandisw]

I am not sure who you are going through, but I didn't have any of those types of options in my documents.

When I put in my offer, I used TSS, I was told that night how much the closing was and that was the only fee that I had.

I would have to pull out my contracts to see which type of closing I had. I know that I had a title company involved in the process as that is who I sent my deposit check to as well as who handled the closing for me.

Maybe others can share more specifics as to their situations. Hope this helps a bit.

 

[work2play]

This contract is with GMAC. I had been waiting for one to be listed on TSS, but they did not have the use year and points that I wanted. GMAC had the exact contract I was looking for. I was able to get the seller to pay half of the closing costs, so that makes it the same for me as going with TSS. After reading all of the great posts here, I knew what to expect relative to fees through GMAC. Their fees are $400 for the "deed only" option, $475 for the "full closing" plus the ever popular $195 administrative fee. Having never purchased a time share, I just don't know if it is common/necessary to go through a "full closing".

 

[swhall]

I purchased thru Jackie at GMAC, she reviewed for me what each option included. I honestly cannot remember the differences between the two, but after the explanation she provided to me for both...I chose the "full". I would check with your representative from GMAC they should be able to provide you with the difference and then you can decide which one is right for your situation.

 

[Buckeye Fan]

This contract is with GMAC. I had been waiting for one to be listed on TSS, but they did not have the use year and points that I wanted. GMAC had the exact contract I was looking for. I was able to get the seller to pay half of the closing costs, so that makes it the same for me as going with TSS. After reading all of the great posts here, I knew what to expect relative to fees through GMAC. Their fees are $400 for the "deed only" option, $475 for the "full closing" plus the ever popular $195 administrative fee. Having never purchased a time share, I just don't know if it is common/necessary to go through a "full closing".

I have an offer in on my 4th DVC contract through GMAC. I have worked with both Jackie and Rachel.

I have always been advised to choose the full closing, and while I didn't recall the extra verbiage in there about the 60 extra days, I went back and it is in there. My guess is that if the buyer and/or seller takes an extended period of time to send in their paperwork and Disney takes their full 30 days for ROFR, it could extend beyond 60 days. I think the 60-day clause protects the buyer and seller from having the process drag out forever as you suggested.

FWIW, I've never had a problem, and contracts closed within 60 days of making the offer.

Best of luck!

 

[work2play]

You guys are fantastic! Thank you for the info. I am working with Rachel at GMAC, she has been very responsive so far. I am hoping for a quick closing and the extra 60 days spooked me. She did send me an email explaining that it is very dependent on Disney and that most have been closing in less than 8 weeks...

 

[Buckeye Fan]

You guys are fantastic! Thank you for the info. I am working with Rachel at GMAC, she has been very responsive so far. I am hoping for a quick closing and the extra 60 days spooked me. She did send me an email explaining that it is very dependent on Disney and that most have been closing in less than 8 weeks...

Absolutely! Glad I could help!

In case Rachel didn't explain the process to you, it's pretty simple.
* Make offer
* Once accepted, sign contracts (buyer/seller)
* GMAC sends to Dis for ROFR
* Once ROFR is waived, GMAC waits for estoppels (basically a document that waives all future rights of the previous owner - very loosly interpreted by a non-attorney, I might add! )
* When estoppels are received, GMAC sends off to the title company for closing.
* Closing docs are prepared and sent. Buyer signs and returns with final funds, and seller signs and returns.
* Deed is recorded with the county, and info is sent to Dis.
* At this point, it takes Dis about 7 - 10 days to get you in their system.

Beginning to end, about 60 days +/-. So much of this is dependent upon the buyers/sellers turning in their paperwork in a timely manner, and the time it takes Dis to waive ROFR and send estoppels.