Seller backed out!

[ThisIsJason]

Got an email earlier from my agent that she received a phone call today that the seller on the Copper Creek contract that we had passed ROFR last week back out. I know that it happens. Now we get to start the process all over again of looking for a 100 point December Use Year (have seen one or two on different sites today). Oh well, things happen!

 

[Sandisw]

Oh, I am so sorry. While it is rare, it sucks when it happens. Maybe they were upside down and just couldn’t find the funds to close it.

Good luck on your search

 

[LAX]

Got an email earlier from my agent that she received a phone call today that the seller on the Copper Creek contract that we had passed ROFR last week back out. I know that it happens. Now we get to start the process all over again of looking for a 100 point December Use Year (have seen one or two on different sites today). Oh well, things happen!

That's gotta be frustrating. When I was in the process of purchasing a resale contract a few years ago, I couldn't believe how sellers can get away with changing their mind with no penalty while the buyers would lose their deposit. I still don't understand how that's allowed.

LAX

 

[Sandisw]

That's gotta be frustrating. When I was in the process of purchasing a resale contract a few years ago, I couldn't believe how sellers can get away with changing their mind with no penalty while the buyers would lose their deposit. I still don't understand how that's allowed.

LAX

Actually, the contract you sign when you sell states you have to pay the commission if you back out. So, they are legally on the hook for that to the broker.

 

[BlueRibbon]

Man, that stinks! I'd be pretty upset, but after all, there's really nothing you can do except look for better looking contracts. Good luck!

 

[ThisIsJason]

Actually, the contract you sign when you sell states you have to pay the commission if you back out. So, they are legally on the hook for that to the broker.

That was the only question I had for my broker, did I owe her anything. Was told no, but the sellers did.

Man, that stinks! I'd be pretty upset, but after all, there's really nothing you can do except look for better looking contracts. Good luck!

My wife thinks it was a good thing. She thought we overpaid to being with but I thought $160/point for 100 was a good deal. She thinks we should be able to get one for $155, if not $150/point.

 

[DebbieB]

When you sell, do you have to put down anything? I know when I bought my house, the seller had put down money towards the commission. I think $1500.

 

[Sandisw]

When you sell, do you have to put down anything? I know when I bought my house, the seller had put down money towards the commission. I think $1500.

Nope. Sellers owe nothing until it’s sold. I believe that Florida timeshare law has something in it that prohibits it...if I am understanding what I have read recently correctly.

Seller will owe broker their fee. Getting the seller to pay up may not be as easy, even with a signed contract

 

[Disneykate605]

That stinks!! Hopefully you find a better contract with more points for a better price!!

Good luck!!

 

[jerseyduke]

That's gotta be frustrating. When I was in the process of purchasing a resale contract a few years ago, I couldn't believe how sellers can get away with changing their mind with no penalty while the buyers would lose their deposit. I still don't understand how that's allowed.

LAX

WHAT????????????????????????????
Who keeps the deposit???????????????????

That literally opens the door to a whole slew of scams.

I would think a broker with a gram of integrity would give the deposit back. Keep the commission, but stick it to the honest person who was upholding the deal?

 

[Sandisw]

WHAT????????????????????????????
Who keeps the deposit???????????????????

That literally opens the door to a whole slew of scams.

I would think a broker with a gram of integrity would give the deposit back. Keep the commission, but stick it to the honest person who was upholding the deal?

Buyer gets the deposit back. if a seller backs out, there is no loss to the buyer except loss of time.

Only time deposit is lost is if it is the buyer who cancels. Then, Seller gets to keep some of that.

 

[jerseyduke]

Buyer gets the deposit back. if a seller backs out, there is no loss to the buyer except loss of time.

Only time deposit is lost is if it is the buyer who cancels. Then, Seller gets to keep some of that.

Ok, thanks. Anything else would be criminal, I could not believe that when I read it. We got conflicting posts here.

 

[Sandisw]

Ok, thanks. Anything else would be criminal, I could not believe that when I read it. We got conflicting posts here.

Yes, the other poster is misinformed.

 

[hlhlaw07]

I don’t think the poster is misinformed, I think you guys just aren’t reading it the way he meant. He meant the seller can change their mind without consequence but if the buyer changes their mind, they lose the deposit. “Changes their mind” applies to both the seller and the buyer. He wasn’t presenting a situation in which the seller changes their mind and then the buyer suffers consequences. The poster should have probably said “but” instead of “while.”

That's gotta be frustrating. When I was in the process of purchasing a resale contract a few years ago, I couldn't believe how sellers can get away with changing their mind with no penalty while the buyers would lose their deposit. I still don't understand how that's allowed.

LAX

Ok, thanks. Anything else would be criminal, I could not believe that when I read it. We got conflicting posts here.

Yes, the other poster is misinformed.

 

[Sandisw]

I don’t think the poster is misinformed, I think you guys just aren’t reading it the way he meant. He meant the seller can change their mind without consequence but if the buyer changes their mind, they lose the deposit. “Changes their mind” applies to both the seller and the buyer. He wasn’t presenting a situation in which the seller changes their mind and then the buyer suffers consequences. The poster should have probably said “but” instead of “while.”

I can see your point regarding buyer and maybe that was the point But It was posted the seller doesn’t get charged Which is misinformation.

Sellers owe commission if they back out.

 

[Bing Showei]

I can see your point regarding buyer and maybe that was the point But It was posted the seller doesn’t get charged Which is misinformation.

Sellers owe commission if they back out.

But in practice, sellers can indeed back out with no repercussions. While sellers are contractually on the hook for the commission, in reality, it becomes cost prohibitive for brokers to pursue legal recourse to collect what’s owed, should a seller back out. Brokers are almost always better off shrugging their shoulders and moving on, which is what is commonly observed.

The effect is essentially as is outlined by previous posters: sellers can back out penalty-free.

It’s important to frame it this way because it underscores the increased risk a buyer assumes when entering into contract on a delayed closing; a situation where the buyer would be well-advised to price that in accordingly.

 

[eandt]

We recently had an offer accepted and were about to do the paper work/ deposit when we were informed by the resale company that upon checking the seller's DVC account it was discovered that the listing was wrong as it pertained to 2020 points .... we withdrew the ofer as it was based on the erroneous listing. Thankfully we had not sent any money yet. I would think that this most basic of information would be checked by the resale company PRIOR to listing a contract for sale ..... we were a bit apprehensive with the process in the first place and this only reinforced that apprehension. FYI this is a well known company. jus sayin

 

[Sandisw]

But in practice, sellers can indeed back out with no repercussions. While sellers are contractually on the hook for the commission, in reality, it becomes cost prohibitive for brokers to pursue legal recourse to collect what’s owed, should a seller back out. Brokers are almost always better off shrugging their shoulders and moving on, which is what is commonly observed.

The effect is essentially as is outlined by previous posters: sellers can back out penalty-free.

It’s important to frame it this way because it underscores the increased risk a buyer assumes when entering into contract on a delayed closing; a situation where the buyer would be well-advised to price that in accordingly.

I don't agree. I think information should be presented as accurate. If one wants to add that brokers may or may not choose to fight a seller who fails to pay up, then the information is accurate. Without it, IMO, it is providing inaccurate information.

 

[hlhlaw07]

I can see your point regarding buyer and maybe that was the point But It was posted the seller doesn’t get charged Which is misinformation.

Sellers owe commission if they back out.

There is a huge difference in the buyer having to put up a deposit which will be forfeited if the buyer changes their mind, and the seller owing a commission that nobody is really going to go after them for. One consequence is very real and will happen no matter what. The other (someone going after the seller and collecting the commission) will only happen if the broker does a cost benefit analysis and decides it’s worth it to sue for breach of contract. The amount of times the cost benefit analysis comes back being worth it would indicate their aren’t really any repercussions for a seller who backs out. If the seller had to put up a deposit for the commission then the buyer and seller would be on the same footing. But they aren’t.

 

[Sandisw]

There is a huge difference in the buyer having to put up a deposit which will be forfeited if the buyer changes their mind, and the seller owing a commission that nobody is really going to go after them for. One consequence is very real and will happen no matter what. The other (someone going after the seller and collecting the commission) will only happen if the broker does a cost benefit analysis and decides it’s worth it to sue for breach of contract. The amount of times the cost benefit analysis comes back being worth it would indicate their aren’t really any repercussions for a seller who backs out. If the seller had to put up a deposit for the commission then the buyer and seller would be on the same footing. But they aren’t.

I don’t disagree there is a difference, But the point is that information needs to be accurate and saying the seller is let off the hook is not accurate.

We shouldn’t just assume that sellers who back out don’t follow through with paying the commission owed. I know I certainly would. And I venture to guess others do too.

Like I said, sellers don’t put up money due to Florida Timeshare laws...unless I have a misunderstanding of the law.