Seller Backs Out After ROFR Passes

[JoeEpcotRocks]

I got a call from Jason at the Timeshare Store today. We passed ROFR about 3 weeks ago. (BWV 150 pts @ $78, Mar. UY, no borrowed or banked). I sent my close documents and final check last week. Today he tells me that the seller is refusing to send their final docs. They refuse to complete the sale!

The seller (from across the pond) blamed the current exchange rate. Jason did all he could - believe me!, but the seller still said no. (Jason cannot recall this ever happening before this late in the game.)

I did the only thing a first-time DVC buyer, die-hard disney family could do -- I made an offer on another contract! We offered at the asking price (BWV 150 points @$76, Feb. UY, no 2005 points, all in 2006). Well, I'm signing and submitting new documents and get to go thru ROFR again shortly!

 

[JimC]

The exchange rate has been bad for some time. Sounds like a flimsy excuse to me.

 

[CharlesTD]

Well it could be an honest reason. I know being from Canada if I was in the process and the exchange rate was to take a turn for the worse I would consider backing out of the deal. I am sorry it happened to you and hopefully the next one goes off without a hitch good luck.

 

[Dean]

It's a shame but realistically nothing that can be done, legally or otherwise. They may yet change their mind.

 

[debbiedoo]

Oh no!!! Good luck!!!

 

[DBBN]

Hi JoeEpcotRocks - what country across the pond were the sellers from? There have been several reports of other sellers backing out well into the process. For that matter it happened to us way back in October 2001. The seller was from the UK. Other buyers have reported their agreement falling apart with UK sellers. As Dean points out, there is no recourse. The only thing to do is to make an offer on another contract.

Good luck with ROFR and hopefully these sellers will honor their agreement.

 

[JoeEpcotRocks]

The sellers were from the UK. You're right the only thing we could do was buy another contract, and we are. The buyers told Jason (Timeshare Store) they were sorry -- but it would have been better if they had real integrity and just kept their "sorry". Thanks for your support DBBN and all others.

 

[manning]

If you have a signed contract, by both you and the seller, under law you can force the sale. Your broker should know this!!!

 

[JimMIA]

I got a call from Jason at the Timeshare Store today. We passed ROFR about 3 weeks ago. (BWV 150 pts @ $78, Mar. UY, no borrowed or banked). I sent my close documents and final check last week. Today he tells me that the seller is refusing to send their final docs. They refuse to complete the sale!

The seller (from across the pond) blamed the current exchange rate. Jason did all he could - believe me!, but the seller still said no. (Jason cannot recall this ever happening before this late in the game.)

I did the only thing a first-time DVC buyer, die-hard disney family could do -- I made an offer on another contract! We offered at the asking price (BWV 150 points @$76, Feb. UY, no 2005 points, all in 2006). Well, I'm signing and submitting new documents and get to go thru ROFR again shortly!

Joe,
Are you and LauraLea related? If not, this is not something anyone should have difficulty recalling -- it's the second one this week! Your fact set is precisely, word for word, the same as LauraLea's.

I had a similar experience a couple of weeks earlier. Before ROFR, but clearly unethical behavior by the seller, and a breach of their contract with the realtor. The problem is, when this keeps happening over and over and over, you have to wonder how much of a victim the broker is!

You might want to go to the Disney Vacation Club forum and look for my post on "Problems/fraud in resales." I bumped it up so you could find it.

 

[LauraLea]

Joe,

My, my....that story sounds very familiar. I will pm you.

Laura

 

[JimMIA]

Ouch! I was hoping you two were the same!

I wonder if it's the same seller on two different contracts?

 

[JimMIA]

Well it could be an honest reason. I know being from Canada if I was in the process and the exchange rate was to take a turn for the worse I would consider backing out of the deal. I am sorry it happened to you and hopefully the next one goes off without a hitch good luck.

I doubt if the exchange rate changed drastically from the time they signed a contract to closing. Even if it did, they are clearly not acting ethically. They are in breach of contract, their word means nothing, and they are hiding behind the fact that they are not in the U.S.

Personally, since I've also had this happen to me, I wouldn't even consider a contract from an owner outside the U.S. again. If I ever buy resale again, the nationality and residence of the seller will be a question I ask before I ever submit an offer.

 

[CarolMN]

If you have a signed contract, by both you and the seller, under law you can force the sale. Your broker should know this!!!

...(snip)...They are in breach of contract, ......(snip).....

I am not a lawyer (although my daughter wants to be one, LOL), but I do agree with you, FWIW. Unfortunately, I think it would cost way more than the DVC contract does to compel the seller to honor the agreement. Much better for buyer to start over and avoid contracts not owned by a U S citizen if he/she is in a hurry to purchase.

I am not sure what the broker can do - it's really not fair to refuse to deal with other UK sellers (assuming they would want to refuse business in the first place) due to the behavior of a few. I suppose the broker could remind the seller up front that exchange rates are what they are and will greatly impact what the seller actually receives.

Best wishes -

 

[iankh]

We're hearing about sellers backing out -- I wonder if they also back out if it didn't make it through ROFR? That is, if DVC decides to exercise their option to buy back the contract? I wonder if Disney enforces the sale going through or do sellers also back out then too? I suppose all one could do is speculate.

 

[dianeschlicht]

We're hearing about sellers backing out -- I wonder if they also back out if it didn't make it through ROFR? That is, if DVC decides to exercise their option to buy back the contract? I wonder if Disney enforces the sale going through or do sellers also back out then too? I suppose all one could do is speculate.

Wow, that's a VERY good question! Does anyone have any experience here?

 

[AnnMorin]

Meaning they say we will offer to buy it from you at the same price as your buyer, if you are going to sell if for that amount only WE can buy it. BUT the seller can say no I will not sell it to you Disney I will go back to my buyer first and see if they want to raise their offer first.This allows the potential buyer another chance at buying it if they want to raise their price. Disney can come back on the next offer and excercise ROFR again or let it pass.This could go on indefinately.

 

[JimMIA]

I am not sure what the broker can do - it's really not fair to refuse to deal with other UK sellers (assuming they would want to refuse business in the first place) due to the behavior of a few. I suppose the broker could remind the seller up front that exchange rates are what they are and will greatly impact what the seller actually receives.

Best wishes -

I certainly agree that it wouldn't be fair to exclude anyone from listing based on where they live, nor would I ever advocate that. I just said I would never buy from an overseas seller again, in light of all the problems we have seen in recent weeks.

IMHO, the broker is the second victim in these sceanrios...unless they relist the property.

The broker has invested a lot of time, effort, and money in making the sale, and they may get nothing for it. I'm sure they have clauses in their listing contracts that say if the seller backs out, the seller still has to pay them their commission, but that's just useless language in contracts this small. As you correctly pointed out, suing somebody for a small amount of money is really not cost effective...unless your daughter is a lawyer.

If, however, the broker relists the property -- and they do -- then I really have to wonder what is going on there. One thing I know for sure when they relist, though -- they were not a victim.

 

[Maistre Gracey]

Meaning they say we will offer to buy it from you at the same price as your buyer, if you are going to sell if for that amount only WE can buy it. BUT the seller can say no I will not sell it to you Disney I will go back to my buyer first and see if they want to raise their offer first.This allows the potential buyer another chance at buying it if they want to raise their price. Disney can come back on the next offer and excercise ROFR again or let it pass.This could go on indefinately.

I was under the impression that this was not so. I thought once DVC exercised ROFR, it was a done deal?

MG

 

[lllovell]

Sorry to hear this happened to you! Good luck with your new contract.

 

[CarolMN]

...(snip)....If, however, the broker relists the property -- and they do -- then I really have to wonder what is going on there. One thing I know for sure when they relist, though -- they were not a victim.

I would agree that the broker was most likely not a victim if the same broker agrees to relist. But if the seller were willing to go back on thier agreement with the buyer, I wonder why the seller didn't "stiff" the broker, too. Seems like there are lots of brokers out there, so why relist with the same one? Cheap is cheap and unethical is unethical. Have to wonder if the broker has/had some other leverage with the buyer? Or did they get their commission up front???

I also wonder if the original buyer has a cause of action against the broker? If it were me, I'd complain to that broker very loudly about the re listing and if I was sure it was the same seller and contract, I'd file a written complaint with the BBB even if I didn't have a legal cause of action - that wouldn't cost me anything except the price of a phone call and a stamp.

Interesting discussion.