Seller Backed Out!

[riatees]

Hi I was just wondering if this happened to anyone else. I was in the process of buying an addon at OKW of 121 points. The contracts were signed, my deposit was received and the financing company approved the loan. Today I get a phone call saying that the seller changed their mind. I didn't think this was legal. After all, I would have lost my deposit if I changed my mind. Basically, the seller has nothing to lose, on the other hand I was all excited that I found an add on that I could afford in my use year. Now I am starting from scratch, if I even try again. Don't want to get disappointed again. Thanks, just venting.

riatees

 

[Beca]

Wow, I am so sorry to hear that! I saw that contract on TTS. You bought that a while ago...I thought the seller was bound to the 10-day period as well as the buyer. Did you buy earlier than that?



Beca

 

[riatees]

Hi Becca, I'm new at buying the resales. I've always added on through Disney. I'm not really sure what the 10 day thing is, but we started this process about 3 and a half weeks ago. As far as I knew we werejust waiting for Disney to pass on it. I do know that the seller signed the contract. They are from England and we had a lot of faxing back and forth. Not really sure what happend, I thought all I had to worry about now was Disney.

riatees

 

[Beca]

I know the buyer can back out within 10 days of signing the contract with no penalty or obligation. I just assumed it was the same for the seller. I just re-read my contract. It seems that your seller might've had to pay some costs associated with the closing company. I (like you) assumed that after 10 days, the contract was binding...but, I guess that is a relative term.

I know there are many lawyers on this site...here's hoping one chimes in on this subject.

And again...I am SO sorry!!!



Beca

 

[DBBN]

This happened to us as well. In October of 2001 we were happy to be purchsing a 386 point OKW resale from The Timeshare Store. Unfortunately the seller changed their mind after the deposit was sent and the purchase and sales agreement was signed by both parties.

As far as I know the seller can back out at any time prior to the deed being signed and sent to the closing agent. I would think it gets more difficult for the seller to back out after the closing agent has the signed deed and is preparing for the closing. When the seller backs out there is no readily available remedy for the buyer. This is a good example showing why it is so important to work with reputable brokers such as The Timeshare Store. The deposit was returned to us by the escrow service.

There is recourse for the broker in that they provided a buyer for the points and the seller could be responsible for the commission on that sale. The fact remains that in most cases the broker just moves on as the cost of recovering damages far exceeds the commission. I suspect brokers faced with this situation simply walk away and make a note to avoid this seller in the future. I hope brokers keep and share a list of these individuals so other brokers or buyers don't waste their time working with this type of seller.

Odd you would mention the seller was from England. The seller in our transaction was from England as well. This would make it especially difficult for either the broker or the buyer to navigate the legal system to recover any damages.

Good luck in finding another resale

 

[Dean]

In FL, the recision options does not apply to resale it appears. And while the seller is bound by contract, how are you going to enforce it? Would you sue someone over this to force them, it wouldn't be worth it. B&M for a day or two then forget it and move on.

 

[crisi]

Ours backed out before the contract was signed.

One of the issues with resales is that it isn't a sure thing. Between ROFR and sellers backing out, its something you need to recognize may take some time and a few false starts.

 

[POOH&PIGLET]

Originally posted by riatees
. . . The contracts were signed, my deposit was received and the financing company approved the loan. Today I get a phone call saying that the seller changed their mind. I didn't think this was legal. After all, I would have lost my deposit if I changed my mind. Basically, the seller has nothing to lose, on the other hand I was all excited that I found an add on that I could afford in my use year. Now I am starting from scratch, if I even try again. Don't want to get disappointed again. Thanks, just venting.

riatees

Your legal rights depend on the contract for sdale that you say was signed. You can sue to enforce that contract. You may be able to sue for "specific performance" i.e. force the sale in accordance with the contract. This will take time and money (and lawyers).

 

[SueM in MN]

We had one a few years where the sellers backed out (or maybe I should say the person who could not sell it backed out).

It turned out that one member of the married couple who owned it tried to sell it without telling the other.
They were getting divorced and one forged the other's signature on the initial documents. When it got to the point of the final documents and needing it notarized, they couldn't fake it.

 

[Lexxiefern]

Wow. I just wanted to say sorry this happened to you and I hope another better contract comes along soon for you!

 

[riatees]

Here we go again!! Just made an offer on 101 points at OKW Aug. use year. Seller accepted, contracts faxed and signed. Wish me luck this time, I didn't expect to find another contract that worked for me so fast. It seems too good to be true!

riatees

 

[Beca]

Sending you lots of Pixie Dust!!!



Beca

 

[WithDisneySpirit]

I am so glad you found another good contract already, Riatees

Here is some extra pixie dust for your trip to ROFR

Keep us updated, please
Lisa

 

[crisi]

Best of luck. Our second try worked fine.