Resale with delayed closing- what to ask?

[DianaMB333]

Hi
I am looking to buy a contract that can’t close until Nov..

Can the seller back out? Should I ask for some sort of penalty in that case?

any additional thing to consider?

thanks

 

[RoseGold]

I did a delayed closing contract over Covid, not like I needed the points right that minute. I put down only $1000 and required very quick close after the trip.

I wouldn't even consider this if it isn't a screaming deal. I mean November is a long time away. As a buyer, you don't have much on the line for money, but this can waste a lot of time, and maybe that matters in your Disney planning.

The seller can back out, and might even have to if they are underwater or in bankruptcy or a million other reasons. They'll still owe commission, but you just get your deposit back.

 

[DianaMB333]

I did a delayed closing contract over Covid, not like I needed the points right that minute. I put down only $1000 and required very quick close after the trip.

I wouldn't even consider this if it isn't a screaming deal. I mean November is a long time away. As a buyer, you don't have much on the line for money, but this can waste a lot of time, and maybe that matters in your Disney planning.

The seller can back out, and might even have to if they are underwater or in bankruptcy or a million other reasons. They'll still owe commission, but you just get your deposit back.

Thanks.. It could be a good price if it gets done; but I could also end up wasting time and risking a higher price later on the year… so I was thinking in a clause that secures that opportunity cost somehow..

 

[Rick195275]

Thanks.. It could be a good price if it gets done; but I could also end up wasting time and risking a higher price later on the year… so I was thinking in a clause that secures that opportunity cost somehow..

I’m not really sure there is a clause that can protect you as the buyer though. The seller can back out at point up until closing realistically, delayed closing or not. But I agree with the PP unless it was an unreal deal I would probably pass, that’s a long time to be waiting IMO

 

[we"reofftoneverland]

I don’t understand why people put dvc up for sale if they cannot actually sell it for 6 months or whatever. I personally stay away from those sellers because they do not seem stable/rational/serious to me.

 

[RoseGold]

I don’t understand why people put dvc up for sale if they cannot actually sell it for 6 months or whatever. I personally stay away from those sellers because they do not seem stable/rational/serious to me.

You can't close with a trip on the books, and DVC requires you to book so far in advance, I can see why it happens. Mine was a passed seller, and they decided to take the last trip or had rented it out or whatever. It was three months delay, as opposed to five. It closed within a couple days of the trip.

 

[RoseGold]

Also, maybe worth noting that Disney waived ROFR pretty early in the process, but I have read that they can contractually intervene until closing. I'm not sure whether they would do actually do that after waiving ROFR, but maybe something to talk about with the broker.

 

[Nabas]

Between now and November is a long time. If you've been trying to buy resale for many months and this is the first contract to your liking, then I can see waiting for it.

However, if you've only been looking a few weeks, there's a decent chance something as good or better will come up in the next couple of months.

 

[Matty B13]

I think any delay over 3-4 months is way to long to wait for a contract unless you have a hard to get UY. In 3 months you can close on most contracts and have your points.

 

[CarolMN]

Hi
I am looking to buy a contract that can’t close until Nov..

Can the seller back out? Should I ask for some sort of penalty in that case?

any additional thing to consider?

thanks

FWIW, I don't think a "penalty" clause will be of much use unless the seller would be willing to somehow escrow the amount of the penalty. If he/she backs out, how would you collect? Probably cost more to do so than the contract is worth.

Only you can decide if the deal is worth the gamble. The seller risks you backing out - if market values go down, would you? (Rhetorical question, just something to think about).

Good luck with your decision.

 

[sndral]

FWIW, I don't think a "penalty" clause will be of much use unless the seller would be willing to somehow escrow the amount of the penalty. If he/she backs out, how would you collect? Probably cost more to do so than the contract is worth.

Only you can decide if the deal is worth the gamble. The seller risks you backing out - if market values go down, would you? (Rhetorical question, just something to think about).

Good luck with your decision.

Good point. Unless the seller is underwater on the contract they never pay any money, putting a clause in the contract for damages to buyer should seller breach wouldn’t be worth much - enforcing & collecting on the breach from someone in another state or even country would probably cost more than the liquidated damages clause called for.

 

[Sandisw]

I don’t understand why people put dvc up for sale if they cannot actually sell it for 6 months or whatever. I personally stay away from those sellers because they do not seem stable/rational/serious to me.

I have sold a few this way because we wanted to still take our trips and according to the brokers, there are buyers out there who like the delayed closing (I have also bought 2) because it allows them to purchase it now but not have to worry about funds until a few months later than normal.

When I was the buyer, it was perfect as I had some additional funds coming in November when the closing was going to happen, it was the perfect contract and price, and I was able to buy and use those funds instead of taking them from other places.

To the OP, with any resale, the seller can back out, delayed closing or not so no matter what, you always need to keep that in the back of your mind.

 

[DianaMB333]

Thank you all for your comments!
Seller didn’t accept the offer that make it for me a good deal to wait.. so, will keep looking