ReSale Offer, a slow close, and banking

[Dean]

One point that Tom might comment on is this. What happens if the accounting is not correct or if the points are not banked or even some are used after any due diligence but before closing and transfer. With traditional timeshares I've seen the contract include a week that the seller then banked with an exchange company thus no week available.

My info is that in theory the buyer would be out of luck as long as the actual ownership is correct. I'm sure most brokers would make every effort to make it correct but a difference of 200-300 point or more could certainly tax the broker's ability and willingness to step up to the plate, and that's a very realistic scenario. Most closing companies don't even check points accounting so you might not now until you had close and were in the system.

 

[T.E. Yeary]

Mistakes will and do happen. However, our system of checks and balances has worked very well for us and our customers over the last 12 years.

Dean, how do you suggest we handle it? We're always open for new and better ways to do things in this ever changing world we live in.

Tom

 

[YoMickey]

I thought that points (banked, current year, borrowed) were all checked in estoppel? By the way who does the estopel? Is that TTS, title company, or Disney's?

Thanks,
YO

 

[T.E. Yeary]

An estoppel deals with the financials, not with the points. The accounting dept. at Disney tells the closing company just how much is owed on any mortgage, dues, etc. because the closing company has to pay those things off before the buyer takes posession. In the past 12 years, Disney has on occasion called us to say that the contract does not match what is actually in the account as far as points go. Our experience has been that 99% of the time all is as it should be. Sometimes Disney doesn't catch the mistake and a problem arises, but this rarely happens because of our system of checks and balances. We have always made good on any mistakes that The Timeshare Store has personally made (and even some that we didn't make).

One of the ways we have been able to eliminate errors is through specialization. By concentrating on a given area, in this case, the resale of DVC, we have done so many of them that we are more knowledgeable about what to expect and where the problem areas might be. Kind of like when you have a heart problem, you would want to be seen by a cardiologist instead of a general practitioner. Not that I'd fancy myself as anyone as prestigious as a cardiologist, but the sheer volume that we do of the DVC Resales makes us a specialist in that area.

Bottom line, do we make mistakes, yes, will we continue to make mistakes, yes, will we continue to correct any mistakes we make, YES!!!!

There is NO company out there, Disney included, that doesn't drop the ball every now and then. It's the ability to accept responsibility for the mistake and make the necessary corrections that separates the men from the boys!

Tom

 

[Dean]

Mistakes will and do happen. However, our system of checks and balances has worked very well for us and our customers over the last 12 years.

Dean, how do you suggest we handle it? We're always open for new and better ways to do things in this ever changing world we live in.

Tom

Tom, I don't have suggestions for how you or similar companies should handle it. I was merely raising the question and at the same time, offering a warning to those that might be in the situation. I doubt there's any way to guarantee this won't happen. I know of a number of situations related to what I posted and the info I've received in the past suggests that the closing company doesn't check actual points or week availability and there's no great way to protect against some of these issues. And it seems the risk for DVC could actually be greater for a larger contract than say a traditional timeshare. I thought you might have some insight since this is what you do or some stories, warnings or suggestions to share. And I was hoping you would correct me and say it wasn't an issue for some reason I was unaware of but since you didn't, I assume it's a valid concern.

 

[T.E. Yeary]

Dean, again you bring a very valid issue to the forefront.

1. For those little tiny companies that don't have the resources available to them to step up to the plate, it is an issue.

2. For those bigger companies that focus on greed as opposed to customer service, it is an issue. This is when a companies track record must be questioned.

Fortunately for us and our customers, neither of these is an issue!!!

To avoid problems in the Resale Marketplace a customer should do a little homework. The following information will help avoid a plethora of issues.

WARNING SIGNS IN THE DISNEY VACATION CLUB RESALE MARKETPLACE!

Handling the Disney Vacation Club Resales requires a great deal of knowledge and expertise as they are unlike any other on the market. It is imperative that you use a broker who specializes in this area to achieve the outcome you desire and avoid some of the unpleasant pitfalls by inexperienced brokers.

Warning signs for BUYERS:

1. A small amount of listings in their inventory (Indicates NO track record)

2. Talking with agent leaves you unsure they know the product. Ask questions about banking, borrowing, points in holding, etc.

3. Unreturned or late response to your inquiry (Where will they be when you need help with the ROFR, Closing Process & getting into the DVC system? A knowledge of the right people to contact in case of a situation is imperative.)

4. Mistakes on postings on their website. Example: OKW, 2 bedroom Wk 6 (DVCs are in points, not weeks and certain size units.)

5. The company tells you that you can purchase BWV for $65 a point and clearing the ROFR will be no problem. (They will get their commission when Disney exercises their “Right Of First Refusal” so they really don't care if you are a new owner or not. In fact, they prefer it, because it's less work for them and they don't have any worries about the closing process or anything else.)

6. Do they have an office? (Many don't, ask for directions, or look up their address, if it's a residential area or a P.O. Box????)

Warning signs for SELLERS:

1. The company asks for an upfront listing, advertising, appraisal, website development, or auction fee. (There is no end to the names they come up with to describe an upfront fee. This is one of the biggest ripoffs out there. These people will take your money and in most cases you will never hear from them again.)

2. The company insists that you sign an "exclusive" listing agreement with a term of several months or even a year (usually 6 months or more), which of course means you are stuck for the duration of the agreement, even if you find your own buyer. If another company or you find a buyer for your package, you also owe the “exclusive” broker a commission.
.
3. The company charges you a cancellation fee if you withdraw your listing before the end of the listing term. (Example: Things happen, if you were selling for financial reasons and suddenly came into some money, you would still be forced to sell or pay the cancellation fee which can sometimes be hundreds of dollars.)

4. They tell you they can get you $150 per point. (That's an exaggeration, but it happens. They will start hitting you up to reduce your price as soon as the listing contract has been signed. They will say the market has changed. Just remember, if it sounds too good to be true, you know the rest.)

5. Is their office easily accessible to the public? You should be able to walk in during regular business hours and be assured they can and will handle your business transaction. Does the broker work out of their home? Do you really think a purchaser is going to drive to their subdivision, knock on their door, and sit down at their kitchen table to write up a contract? How many DVC buyers have actually done this? The internet has enabled many people to disguise the true circumstances of their situation. They have a pretty website, so the public thinks the are dealing with a really big operation.

6. Do they have a person answering the phone or is it primarily an answering machine. People are continually frustrated in this day and age just dealing with the obstacles of trying to speak to a real person. This does NOT put them in the buying mood. Most often they will keep calling around until they reach someone who can discuss their situation.

Franchises:
The latest trend in the Resale business is for brokers to align themselves with a national franchise in order to legitimize their operation, thereby creating a false sense of security to the general public. Examples: ERA, Century 21, GMAC, RE/MAX, etc. Some Resale brokers go from one franchise to another after the number of complaints build up, they simply purchase a new franchise and it's business as usual. Most legitimate and ethical businesses should be able to use and operate under the same name for many, many years. In fact, if their reputation was one they could take pride in, they would insist upon it!

The above statements are certainly not meant to be construed to include "every" agency that is backed by a franchise. There are definitely some reputable Resale offices with ties to franchises. My warning is, it's NOT always the case. Protect yourself, look for the same warning signs with these companies as you would with any other Resale company!

 

[Dean]

Thanks Tom, any stories to tell (DVC or otherwise).

 

[Nanajo1]

3/24 called closing company to make sure they recieved everything since I didn't hear from them. At first they said now but as they looked around they the package was sitting on a pile of unopen mail. They stated they were still waiting for selllers docs yet.

Good thing YOU called them. I wonder how long the mail would have sat there. This just points out how viligiant you have to be with resales. I have bought 5 resales and the waiting for the final word can be unbearable.
I'm happy for you that it all worked out.

 

[zillow]

I agree with Nanajo1 and can tell you my experience from a seller's point of view. I'm in the process of selling and was waiting (fairly patiently) for my closing documents. Finally I had a phone message saying that my documents were sent 2 days previously by email - yet I hadn't received them. Turns out they had one letter of my emial address typed incorrectly. When I called to say that I had not received the documents they mentioned that the emails kept coming back to them. Well...if they kept coming back to them why did they wait 2 days to call? My point (and I do have one ). Is that it may not be the 'seller' sitting on those documents. I wasn't all that impressed with the closing service. I was able to get them notarized and turned around within 1 1/2 days from receiving them.

Good luck using your points.

 

[Nedlo2]

I always follow up with a phone call or email to verify that the documents, etc. were received. In fact, I sent documents to the closing company on Wednesday for my DVC purchase (waiting ROFR ). I followed it up with an email to verify if they received them and got a 'yes we did' reply back. Waiting is the hardest part of the whole deal and I don't want to wait any longer than I have too.

3/24 called closing company to make sure they recieved everything since I didn't hear from them. At first they said now but as they looked around they the package was sitting on a pile of unopen mail. They stated they were still waiting for selllers docs yet.

Good thing YOU called them. I wonder how long the mail would have sat there. This just points out how viligiant you have to be with resales. I have bought 5 resales and the waiting for the final word can be unbearable.
I'm happy for you that it all worked out.