Resale Purchase Agreement and tips

[WDWRook]

For those who have purchased resale, do you have a purchase agreement you have been happy with? Any tips or traps to watch out for that should be address in the agreement, like a price adjustment if they use any points between offer and closing? How do you verify that the seller actually owns the points and that the annual fees are paid upto date?

 

[Stargazer65]

Any tips or traps to watch out for that should be address in the agreement, like a price adjustment if they use any points between offer and closing?

Yes, look for that. Our contract ended up being wrong on points allocation after the points were loaded when we bought our last resale. We only received half of the allotment of current use year points (and a chunk of banked points not expected) when the ad and the contract specified the full allotment of current UY points. It was not anyone being dishonest, they just had multiple contracts and were confused as to what points were what. Anyway, the contract had a statement that specified reimbursement amount per point if all the points were not there. We got compensated by the owner and the broker for the shortfall.

 

[FSUSammy]

I believe the estoppel verifies points, but I'm not 100% sure. Our contract specifically states how many points are banked and when they have to be used by as a special clause. The one thing I wish was added after we signed was a shorter window to have the seller sign the contract. Ours gave them 10 days and I feel like that's just too longer of a window.

 

[Rush]

Disney no longer willingly gives the brokers info regarding points or status of the dues when they list a contact, so it’s somewhat now based on good faith from the sellers until the title company gets involved in the closing document. Most agreements have a penalty to the seller for roughly $15 per point if the point status is different than stated in the agreement, or if the seller uses points after the agreement is made, so make sure that’s in any agreement you sign.

Also, you can look up the deed on the OC website as soon as you see the seller’s name on the agreement, to check ownership, UY and point number, as well as if it has a mortgage lean on it. I did this on a recent offer and found not only did they advertise it as the wrong UY, it was a 10 point less contract than they had it listed at, icing on the cake was it didn’t have full 2021 points as advertised. Of course we retracted that offer and made one on another.

Do your research, ensure it has these protections for inaccuracies in the agreement and you should be fine. Good luck!

 

[WDWRook]

Thanks. Great tips.

 

[Sandisw]

I believe the estoppel verifies points, but I'm not 100% sure. Our contract specifically states how many points are banked and when they have to be used by as a special clause. The one thing I wish was added after we signed was a shorter window to have the seller sign the contract. Ours gave them 10 days and I feel like that's just too longer of a window.

It does not It verifies the financial elements of it.

 

[FSUSammy]

It does not It verifies the financial elements of it.

WOMP WOMP lol the one thing I have learned from reading this forum for sure was that before I sign closing docs I'm going to ask to see a screenshot of what the points look like. If I get that or not is another story lol but can't hurt to at least ask.