ROFR Discussion Thread

[Sandisw]

Please use this thread to post comments, analysis or opinions about contracts that have been posted in the RoFR thread.

If you are a new or potential buyer and have questions, feel free to post them here if you don’t want to begin a new thread.

This is also a great place for those who are just learning to get a wealth of knowledge about all the ins and outs that go into a purchase.

Please do not tag anyone who submitted something in the ROFR thread unless they requested input.

Thank you!

 

[IsDVCForMe?]

Disboards is getting complex

 

[Sandisw]

Not at all It’s just means that threads can stay on topic which makes it easier for those who see a title and think it’s about one thing and it’s not.

So, those looking for the ROFR data can find it easily and those who want to discuss things can do that easily.

It’s a lot of work to maintain the threads, especially the RoFR one as all of us here are volunteers so we try to help each other as best we can.

 

[Girlstar30]

Well I will start with a question, once you pass rofr and turn in your closing docs, is the seller still able to back out? I have done my part to close and im thinking of attempting to modify into a one bedroom for an upcoming trip which will need more points to complete in a couple of weeks, but if theres still a chance they can pull out its probably best to wait

 

[VGCgroupie]

Well I will start with a question, once you pass rofr and turn in your closing docs, is the seller still able to back out? I have done my part to close and im thinking of attempting to modify into a one bedroom for an upcoming trip which will need more points to complete in a couple of weeks, but if theres still a chance they can pull out its probably best to wait

Yes they can still back out. The only one that really gets hurt by backing out is the buyer. I would wait until you have your points to modify anything so you dont get yourself into a pickle. Remember it's always a possibility your points load and they are not what was sold to you. So there is that also in regards to it being better to wait.

 

[Girlstar30]

Yes they can still back out. The only one that really gets hurt by backing out is the buyer. I would wait until you have your points to modify anything so you dont get yourself into a pickle. Remember it's always a possibility your points load and they are not what was sold to you. So there is that also in regards to it being better to wait.

Thank you needed someone to tell me that and I thought they were somehow obligated after rofr, they dont even lose money if they pull out??

 

[airjay75]

Thank you needed someone to tell me that and I thought they were somehow obligated after rofr, they dont even lose money if they pull out??

Like all real estate transactions, unless there was a penalty written into the contraction, I think the only thing a buyer can do is sue the seller for specific performance. But, in most real estate transactions, buyer's just give up and move on because that is more trouble than its worth. Even more so with something like DVC where you can go find other similar contracts with relative ease, albeit not always with the same deal you scored the first time.

 

[Girlstar30]

Like all real estate transactions, unless there was a penalty written into the contraction, I think the only thing a buyer can do is sue the seller for specific performance. But, in most real estate transactions, buyer's just give up and move on because that is more trouble than its worth. Even more so with something like DVC where you can go find other similar contracts with relative ease, albeit not always with the same deal you scored the first time.

Wow what happened to the 10 days to pull out does that not apply to sellers? Yeah I wouldnt bother suing too much hassle

 

[airjay75]

Wow what happened to the 10 days to pull out does that not apply to sellers? Yeah I wouldnt bother suing too much hassle

Yeah, I think a seller can pull out up until the transaction has closed. Even when you're buying actual real property (yes, I know pre-trust DVC is deeded real propriety, but I mean actual houses and land), sellers can simply say, they changed their mind, they don't want to sell, and other than suing to try and force the seller to close, I don't think there is much a buyer can do unfortunately.

I suspect that is pretty unusual with DVC resale transactions, especially if someone isn't selling a direct or grandfathered contract.

 

[IsDVCForMe?]

Hmm, this is a good discussion because I had thought about it as well when we were closing. So a seller has a moral obligation and a buyer has a financial obligation to make sure the sale is final?

 

[Brian Noble]

The seller probably owes the commission to the broker. Whether or not that is enforceable, I don’t know.

 

[Sandisw]

Thank you needed someone to tell me that and I thought they were somehow obligated after rofr, they dont even lose money if they pull out??

They owe the broker the commission if they cancel the sale.

 

[IsDVCForMe?]

Crappy for the buyer.

 

[Sandisw]

Hmm, this is a good discussion because I had thought about it as well when we were closing. So a seller has a moral obligation and a buyer has a financial obligation to make sure the sale is final?

Sometimes things happen at the last minute that can derail it.

There have been reports of situations where sellers were upside down, thought they’d have the funds to close and ended up having an emergency.

But, over the 17 years I have been here there have been very few reports of it happening. However, both buyer and seller can choose not to follow through

Buyer loses deposit and seller owes the broker their commission and IIRC, other fees.

 

[IsDVCForMe?]

Sometimes things happen at the last minute that can derail it.

There have been reports of situations where sellers were upside down, thought they’d have the funds to close and ended up having an emergency.

But, over the 17 years I have been here there have been very few reports of it happening. However, both buyer and seller can choose not to follow through

Buyer loses deposit and seller owes the broker their commission and IIRC, other fees.

So if buyer backs out, seller gets deposit? If seller backs out, broker gets commission?But buyer never gets anything?

 

[airjay75]

I mean, it's not a lot different than when you buy/sell actual real estate. Don't think real estate agents would get commission if it doesn't close, but the buyer puts there earnest money deposit up and has money on the hook if they walk away, while the seller doesn't really have anything they lose if they cancel.

 

[Brian Noble]

...and this is fine. It goes well so often that it is not worth worrying about.

There is a broader philosophical quesiton under all of this: are most people generally reasonable? Our prevailing cultural context has spent a lot of time trying to convince us that they are not. My direct experience---and that of pretty much everyone I know---is that they are.

Do Bad Things still sometimes happen? Yes. We cannot prevent all Bad Things. But, most of them are not all that big of a deal. For example, in this case, what does one lose? A little time before points load, and maybe a few bucks---but maybe you save a few bucks instead.

 

[IsDVCForMe?]

...and this is fine. It goes well so often that it is not worth worrying about.

There is a broader philosophical quesiton under all of this: are most people generally reasonable? Our prevailing cultural context has spent a lot of time trying to convince us that they are not. My direct experience---and that of pretty much everyone I know---is that they are.

Do Bad Things still sometimes happen? Yes. We cannot prevent all Bad Things. But, most of them are not all that big of a deal. For example, in this case, what does one lose? A little time before points load, and maybe a few bucks---but maybe you save a few bucks instead.

Good point

 

[Girlstar30]

They owe the broker the commission if they cancel the sale.

At least theres some kind of consequence after weve gotten this far