Resale snag - help!!!

[mickeyluvr]

My DH and I are in the process of purchasing a 100 point add on at HH. We made the offer with the understanding that 100 HH points would be available to us for 2002 (June use yr). The closing service has come back now and reported that there are only 3 points available for 2002; the seller wanted to transfer 97 points from another contract (I think WLV) and Disney said they couldn't do that. What do we do now? I hate to withdraw the offer but at the same time want to be compensated for the 97 2002 points. I was thinking of asking the seller to pay the closing and recording fees in leiu of the points (around $400), is this reasonable? Or should we insist he transfer us 97 points from that WLV contract as a separate transaction, which I'm pretty sure is possible since we did that for some friends of ours. Or should we just walk away, which would really frost me since 2 other chances to purchase HH points have come and gone since we started all of this? Appreciate any advice!

 

[Doctor P]

Personally, I think this is a material issue. I would try to either get the points transferred after the closing, or I would try to lower the sale price by about $600 or so (assuming that all of the 2002 calendar year dues have been paid--if not, I would try to lower it by $600 plus the amount of dues that still need to be paid on those points).

 

[HookdonWDW]

I would look at a couple of things. First, what was the contingency for paying the dues for the 2002 points? If you are being charged the dues, I would definitely want the use of the points. If you really want the points in 2002, maybe you could have the seller book a reservation for you using their WLV points (make sure you get the deal in writing). Otherwise, I think that asking the seller to pay closing costs is a very fair and reasonable request.

 

[Gary K. D.]

The points are worth on an average of $10.00 per point on the rental boards. If your contract and understanding was that you would have an additional 97 points for your use, which you now do not have, the contract is worth $970.00 less. To insist that the seller pay the closing costs is very generous of you. I would ask for a $970.00 reduction in the sales price.

Unless the original contract calls for the buyer to reimburse the seller for the maintainence and taxes on the 2002 points, it should be assumed that the seller is paying or has paid those monies to Disney and the buyer is under no obligation to the seller for those fees. If the seller refused to move toward the $970.00...find another seller. With the economy the way it presently is, there will be sweeter deals around the corner.

 

[DVCajun]

As long as the 97 points from another contract aren't in borrowed status, they can transfer them to another member. I agree that you'd be cheating yourself if you only had them pay closing costs. Your original agreement should be honored.

 

[Dean]

The trouble is that you will not be able to transfer the points into the HH contract while it's in limbo. I also wonder if the seller was trying to transfer banked points. You could ask the seller to reserve for you in your name much like a rental. You could also take the chance that they would/could transfer the appropriate number of points to you after the sale was completed. I personally would agree with the price reduction. I'm assuming all 2003 points are there, you need to make sure if you haven't. I'd pay no fees for 2003 and ask for a lower price by $970 or so. There are many ways to adjust this and it partly depends on how good the deal was initially. Remember that the fees you pay this January will in part be for those 2002 points you are not getting. You can make this work if you and the seller truly want it to.

 

[SleepyatDVC]

mickeyluvr,

Since this seems to be an add-on, why not have the 97 points transferred into your existing DVC account separately and in advance of closing.

I would have this stipulation added into the sales contract. I would also consider what would happen if the sale still falls through after the points transfer. Perhaps have the closing company deduct $4-7 per point from your deposit to pay to the would-be seller. The rest of the deposit would, of course, be refunded to you. The seller & buyer should agree on the price per point. Personally, I would consider a lower price per point fair to the seller even though the "rental price is higher" because the buyer isn't looking to "rent" points but buy them and will now be "stuck" with "rental" points he wasn't looking for.

I would have all this in writing and added to the sales contract.

If it were me, I would prefer to have the points rather than have the seller cover closing costs.

 

[Desperado]

Since this seems to be an add-on, why not have the 97 points transferred into your existing DVC account separately and in advance of closing.

Sounds like a great idea. I'd go for the transferred points over money myself.