Resale Process - Step by Step

[Cruiser1969]

Hi

I've never posted on the DVC boards as I have spent most of my time in the DISigns area. I am playing with the idea of DVC but realize I will have to buy resale as I only want about 100 points to start.

My question: Could someone please list out the steps involved with resale, right from the beginning? If I see a sale I'm interested in, do I just e-mail the company listing it? What happens next? Could you be as specific as possible. I really like knowing what to expect of the process before starting anything. Any estimated timelines would be great, too!

Thank you for your patience with me . . . I've been reading and learning soooo much!

Maria

 

[Dman67]

Hi Cruiser...I'll take a stab at this since I just wrapped up my first resale contract with The Timeshare Store (TTS). Keep in mind that TTS is not the only DVC Resaler out there but they are the one I used so I have experience with them (a good experience at that too).

1. Review the list of current resale contracts on the DVC Resale Listings link above. Find the one you want.

2. Fill out the form at the bottom of the DVC Resale Listings page and submit it.

3. Sit back and wait for a TTS rep to contact you. - This usually takes a day maybe two.

4. Make an offer on the contract you want, keep in mind that the price listed on the DVC Retail Listings website is not what you have to offer but that is the seller's asking price. Also, if you want to negotiate with the seller on the closing costs and maintenance dues you can at this time. (Personal Note: I negotiated to have the seller split the closing costs with me and prorate the maintenance dues for 2007 for 6 months).

5. Wait for TTS to contact you regarding whether or not the seller accepted your offer. If they did then TTS will have a contract for you to sign (they'll email it to you) and they will ask for 10% down. - It depends on the seller in determining how long this step takes. if they are motivated to sell then it may be only a day or two. if they aren't motivated it may take longer.

6. Once you sign the contract and send the deposit your contract goes to Disney for "Right of First Refusal" or ROFR. - This step can take up to 30 days but most have found that it takes about 7 - 10 business days, maybe a little bit longer.

7. TTS will contact you to let you know Disney's decision on ROFR. If you passed they will send your contract to The Timeshare Closing Services, Inc. (TCS) for processing of the Deed Transfer and process the closing doc. - This step can take as much as 28 days but more likely about two weeks at the most.

8. Once you recieve the closing doc, sign them and return them with a Cashier's Check or Money Order for the remaining balance. TCS will be sending similiar paperwork to the seller.

9. Once TCS recieves your paperwork and the seller's paperwork and ensures it is all correct and that your check cleared you are officially closed. - This step depends entirely on how quickly you and the seller get the paperwork back to TCS. Once TCS has the paperwork it takes them a day or two to close the deal.

10. Once you are officially closed TCS will send the Deed Transfer and closing documents to Orange County & Disney for proper filing. Disney now has to add you to the DVC System. - This step takes anywhere from 3 - 10 days.

11. Once you're in the DVC system and your points are posted you can officially make a reservation. Total time from start to finsh could be anywhere from 4 weeks to 12 weeks. It is very fluid and depends on many factors.

 

[CheshireCat]

This is some fantastic advice.....thanks for going through it step by step. Many of us need that....LOL.

 

[Cruiser1969]

WOW!! This is exactly what I was looking for, and you did an amazing job explaining all the details to such a newbie!! I do appreciate the time it took you to lay this out for me!

 

[Cruiser1969]

5. Wait for TTS to contact you regarding whether or not the seller accepted your offer. If they did then TTS will have a contract for you to sign (they'll email it to you) and they will ask for 10% down. - It depends on the seller in determining how long this step takes. if they are motivated to sell then it may be only a day or two. if they aren't motivated it may take longer.

I have a question about this step, specifically the 10% deposit . . .

Since deals can fall apart at the ROFR step, is the deposit cashed immediately or held onto until the deal goes through?

This is a small concern for me as I am Canadian and assume I have to go through a few extra (bank) steps to "cut" a US cheque. If it takes a couple tries before finding a deal that passes ROFR, I want to know how complicated the passing of money will be at the deposit step.

Thanks for your patience

 

[Donald is #1]

Cruiser1969 thanks for posting the question and Dman67 thanks for the great response. This is awesome information for those of us thinking about resale.

 

[Dman67]

I have a question about this step, specifically the 10% deposit . . .

Since deals can fall apart at the ROFR step, is the deposit cashed immediately or held onto until the deal goes through?

This is a small concern for me as I am Canadian and assume I have to go through a few extra (bank) steps to "cut" a US cheque. If it takes a couple tries before finding a deal that passes ROFR, I want to know how complicated the passing of money will be at the deposit step.

Thanks for your patience

The deposit is held in Escrow. If the deal falls through due to ROFR or whatever TCS will refund your down payment. Then you just find a new contract and start all over.

 

[Cruiser1969]

The deposit is held in Escrow. If the deal falls through due to ROFR or whatever TCS will refund your down payment. Then you just find a new contract and start all over.

Thanks, Dman! I suspected so, but had to make sure

I've saved your wonderful information with my DVC research files. You've helped a great deal!

 

[Buckeye Fan]

My experience was almost exactly the same with GMAC International (worked with Jackie). The only difference is I called her, told her what I was looking for and we discussed what was available. I made the offer through her and she worked with the sellers, as I purchased 2 separate contracts. Something else to keep in mind, I negotiated for both sellers to pay closing costs and one seller to pay GMAC's $195 fee. I wanted the other contract because it was loaded, so I was willing to pick up the $195 fee. I know maintenance fees are also negotiable when you're looking at price. However, look at the ROFR thread, as it will show you what has been passing ROFR (price per point).

On another note, I only had to put down $100 per contract. The remaining balance was due when I signed my closing docs and I was able to apply it to my credit card over the phone.

It truly was a very simple process, but took a good bit of time. If you're looking to make reservations for an upcoming trip soon, be aware that you may have to have a "Plan B" in case your contracts don't close quickly. This is all dependent upon you and the sellers getting the contracts signed and in and Disney moving you through ROFR quickly.

 

[mla973]

To add to what BuckeyeFan posted...

I just finished a resale process with GMAC as well. We only placed $100 down. Our first contract purchase was taken back by Disney through ROFR. We were given a choice of a refund or they would hold it if we found another contract. We immediately found a better one, so we did not have to pay again, since the $100 was already in escrow. (They let us pay by credit card, by the way.)

We were in the DVC system exactly one week after mailing the check in. We have reservations already, but are still waiting to receive the welcome packet and other information.

 

[JCLNJ]

http://www.reid4florida.com/disney_hot_buys.htm

The link above is for Reid Realty. We used them for both of our resales purchases and they were excellant. The process was quick and we got an immediate response back every time we had a question.

Good Luck!

 

[tgropp]

]If you see a resale listing that you like, phone ASAP. The really good listings(around 100 points or less) go very fast, especially if all the points are available. I am still waiting for Disney's ROFR on the listing that I was succesful on getting, but I called three different times on three different listings that were posted on the same day that I called and they were all gone by the time I phoned on the same day. You can also get on a mailing list where the agents will e-mail you all the new listings as they are available. Good Luck!!

 

[flechette]

Tag for later review~ looks like some great info!