Resale Contract Closed, but not getting contracted loaded until after 7/8/2022 over 60 days from closing? Advise wanted

[Kjdisney]

How can a title company send documents to Disney saying ownership of the deed is pending? They closed the contract, recorded the transfer and handed out funds. You are shown as legal owner, with nothing signed by you stating you agreed to this delay. I would ask MA what is pending according to the title company and include a copy of the deed showing you as owner. I just find it baffling that Disney would be complicit in what appears to be extremely unethical behavior. I just can’t see what legal basis there could be to allow this reservation.

I understand that there is a delay of a few weeks to transfer the membership, but this is purposely denying membership for 60 days to the buyer, so the seller can enjoy a trip with the proceeds of the sale of the contract they now no longer own. That’s crazy!

 

[RamblinWreck]

There’s no question that they seriously messed this up.

I’m surprised MA is covering for them.

It’s just not okay that it’s been closed, but the seller still retains access to the account.

 

[starry_solo]

I don't know that I would believe what some person at Member Administration says.
The deed was recorded.
That, in the eyes of the law, is when the change of ownership occurred.

 

[MamaBelle4]

What would be stopping the previous owner from renting out the 2024 points, getting the cash, the reservations being cancelled when ownership switches on Disney's end? I don't imagine that would come back to the OP but IDK. I agree this whole thing is fishy and I'm sorry OP is dealing with it.

 

[Robbie Cottam]

What would be stopping the previous owner from renting out the 2024 points, getting the cash, the reservations being cancelled when ownership switches on Disney's end? I don't imagine that would come back to the OP but IDK. I agree this whole thing is fishy and I'm sorry OP is dealing with it.

That rental contract would be between the previous owner and the renter…. So the renter could get burnt…

However, hopefully the used year would not line up so that something could be booked with the 24 points yet.

 

[JGINPL]

That rental contract would be between the previous owner and the renter…. So the renter could get burnt…

However, hopefully the used year would not line up so that something could be booked with the 24 points yet.

Unfortunately use year would line up to allow borrowing of funds to book a reservation in Feb of next year or March. That is what I brought up to the broker. I’m supposed to be receiving an email from the broker tomorrow. So I will see what he says in there again.

 

[Robbie Cottam]

Unfortunately use year would line up to allow borrowing of funds to book a reservation in Feb of next year or March. That is what I brought up to the broker. I’m supposed to be receiving an email from the broker tomorrow. So I will see what he says in there again.

Well, that’s ugly…. The good news you would be ok because the hypothetical “renter” would not know who you are…..

The bad news is the again hypothetical “renters” would get burnt….

Just a bad deal all around….

I’m really sorry some licensed broker did this. Mistake or not, this broker needs a license review .

 

[RoseGold]

I just find it baffling that Disney would be complicit in what appears to be extremely unethical behavior. I just can’t see what legal basis there could be to allow this reservation.

It would be great for the broker/title company if the trip went on and you got your points later. But why would Disney allow that????

Who cares what the broker said. What does DISNEY say???

 

[JGINPL]

It would be great for the broker/title company if the trip went on and you got your points later. But why would Disney allow that????

Who cares what the broker said. What does DISNEY say???

Disney is the ones also that told me they have all the paperwork but there is a reservation on the system. The transfer of ownership is pending on their system. It will remain pending until after the reservation is completed.

 

[Sandisw]

It would be great for the broker/title company if the trip went on and you got your points later. But why would Disney allow that????

Who cares what the broker said. What does DISNEY say???

I think that the OP could push the issue with Disney if they wanted. MA has said they view it as pending and will allow the reservation to stand, which goes against all terms that have always been in place.

I give the OP credit. I would not be so nice and would tell MA that as legal owner of the contract, with an official transfer of title, it needs to be transferred ASAP.

Now, because they weren’t expecting the points, I’d tell MA to find a way to transfer the reservation to them as well so the previous owner still had it, but that access to the contract should not be delayed.

 

[RoseGold]

Disney is the ones also that told me they have all the paperwork but there is a reservation on the system. The transfer of ownership is pending on their system. It will remain pending until after the reservation is completed.

Wow. I’d dig up bill’s email. I’d email him and MA that you don’t consent to this, never have agreed to this, and you consider it stealing because your deed is publicly registered by the state a month ago. You want to see the documentation so you can follow up.

Someone from Disney will follow up with you. They do handle actual issues. Maybe there is a bylaw somewhere? Maybe they were given bad documents? It’s possible they just lied to Disney?

And yea. OP sounds like a much nicer person than I would be. This would honestly have me looking into regulatory boards.

If you need to live in the house another month, then put it in the contract, or delay the close. Incredible.

 

[EatMoreVeg]

Talked with the Broker, they are stating it can take Disney up to 90 days per the contract to transfer ownership. (I told them I've bought 6 and they transfer after 30 days and the Title Company even says up to 4 weeks) I voiced my concerns to them stating that I am worried that the transfer could be delayed even more if the customer borrows points after and makes a new reservation. They stated that their clause in there that if points are missing they have successfully recovered 25 per point if any are missing. I voiced more concerns about I wish this was disclosed on the contract so I knew the transfer wouldn't be made until after 7/7/2022. They stated they have talked to Disney and will expedite the transfer on 7/8/2022. They also stated in Disney's eyes the contract is still the customers until the reservation is completed. That I in no way would be made liable as the reservation is in the person's email. I said that I wish it would have been spelled out more that the transfer would take place after a reservation, that would have been clearer and I may have changed how I bid on this contract. It was a good conversation and I asked the end if I could get the Admin Fee waived on a purchase if I do another one in the future. ha ha

I would be asking for the admin fee on THIS purchase to be refunded. Why are you paying them $200 for incorrect information??

 

[Robbie Cottam]

The more I hear about this the more I feel the broker was not forthcoming.
Assuming ever thing the OP has said is correct, and I have no reason the believe it is not someone lied. This did not fall through the cracks, it sounds like the facts were misrepresented.

 

[BruinEd03]

Unfortunately use year would line up to allow borrowing of funds to book a reservation in Feb of next year or March. That is what I brought up to the broker. I’m supposed to be receiving an email from the broker tomorrow. So I will see what he says in there again.

If you are OK with the other reservation standing, there are some potentially creative solutions for you, if you want to book before July 8, and the broker is willing to cooperate. The broker can secure a reservation for you before July 8 with points that you would have used or borrowed. Perhaps they can throw in a sweetener and maybe book a room with 10 to 20% more points that what you would have used. In return, you would agree to transfer those points to the broker after closing. The broker can then rent out those points to recover their cost.

However, I would also ask that the broker sign a separate agreement stating that they would be responsible for any damages caused by the seller or any issues that arose from the contract before it transfer to your name on July 8.

 

[RamblinWreck]

If you are OK with the other reservation standing, there are some potentially creative solutions for you, if you want to book before July 8, and the broker is willing to cooperate. The broker can secure a reservation for you before July 8 with points that you would have used or borrowed. Perhaps they can throw in a sweetener and maybe book a room with 10 to 20% more points that what you would have used. In return, you would agree to transfer those points to the broker after closing. The broker can then rent out those points to recover their cost.

However, I would also ask that the broker sign a separate agreement stating that they would be responsible for any damages caused by the seller or any issues that arose from the contract before it transfer to your name on July 8.

On the one hand I agree with what you and others like sandisw are saying.

As a generally good person, the details around the points aren’t wrong so it makes sense to let the reservation stand.

But this contract closed a while ago. The funds were distributed. The risk to the buyer is substantially increased in this situation, a situation that was not disclosed and was not handled appropriately at all.

The broker should be on the hook for this failure. Not the buyer or the seller. But I wouldn’t want to torch this sellers trip either.

This is messy.

 

[disneyland_is_magic]

I want to know (because I am nosy) when the reservation was made. If it was made during the sale process or even more insanely after, that's one thing. If the seller has had this booked since their 11 month window, seemingly something they weren't try to hide and the broker monumentally blew it, that is another.

Still, the seller had to be somewhat deceptive (or in the mood for a game of roulette) to sign closing documents with a trip pending. It be like selling your car and then just using your spare keys to keep driving it.

Is it possible the seller has multiple membership/contract numbers and they think the points have been transferred "away" from this contract and genuinely have no idea you are facing these issues?

 

[JGINPL]

I want to know (because I am nosy) when the reservation was made. If it was made during the sale process or even more insanely after, that's one thing. If the seller has had this booked since their 11 month window, seemingly something they weren't try to hide and the broker monumentally blew it, that is another.

Still, the seller had to be somewhat deceptive (or in the mood for a game of roulette) to sign closing documents with a trip pending. It be like selling your car and then just using your spare keys to keep driving it.

Is it possible the seller has multiple membership/contract numbers and they think the points have been transferred "away" from this contract and genuinely have no idea you are facing these issues?

I believe this was on the books for awhile. The sales contract stated that there were no points until 2024, which I was aware of. I don't know if it was a new agent dealing with DVC or what, because I voiced my concerns that normally you would see this as a delayed closing until after the reservation. I had brought up the membership question again and if they could just transfer the points out, but didn't get a very good response.

 

[Matty B13]

Broker should be refunding you their commission on this one, they failed at their job completely.

 

[sndral]

I don’t understand how someone can use all of their 2023 points for a trip between now & July - 50% of the 2023 points, yes, but all of them?
If I were in the market to buy resale points I’d seriously consider adding a clause to the contract or an addendum along the lines of ‘seller represents that there are no pending reservations that would delay transfer of ownership by DVC to buyer and agrees they will take no actions to delay Disney’s transfer of ownership to buyer, including but not limited to booking any trips using points from contract XYZ henceforth.’
I actually have a vague recollection about a similar thing happening a couple of years ago & thinking at the time that Disney‘s delaying transfer was unlawful.
When I bought my current house 3 years ago I allowed the sellers to stay in it for a week after closing to enable them to close on the house they were buying & move, however, there was a specific clause allowing this & $1,000 was held in escrow & only released to them after they had moved out. This business of DVC not immediately transferring membership is ripe for issues to arise - they really need to transfer immediately or at least block former owners from access to points that are no longer legally theirs until they complete the transfer process. After all when someone buys direct DVC puts the new points in the system almost immediately.

 

[KayKayJS]

I am not a DVC expert (don't even own yet) - but I don't understand how something can be legally yours, and funds distributed, and you not have access to it. Especially if there was no language to confirm this in the contract.