Seller has hundreds of deeds on comptroller?

[ryang25]

Hello! I have had an offer accepted on a second resale contract after the first didn’t make it through ROFR.

Out of interest, I searched the seller’s name on the Comptroller site to try and find the deed and do a little due diligence. I surprisingly found hundreds of contracts - some with them as the grantee and some as the grantor - and some bought/sold alone and some with others. It’s a very specific name/combination of names so I am certain they are all them. We’re talking >$1mil worth here.

I assume it’s someone buying/selling/renting commercially given the volume but I thought this was prohibited. I was also shocked to see a ton of finance agreements, most with Monera, and some liens issued too. More interestingly, I couldn’t seem to find a deed that matched the one I have offered on either.

How concerned should I be? I’m from the UK so a lot of the legal terminology is different to what I’m used to, however, I understand the title company should conduct searches etc to ensure the contract is free of debts/restrictions/liens etc.

The seller is taking their time signing the contract and sending the deed copy over to the broker too, and I am getting a little nervous!

 

[airjay75]

Nothing you shared would concern me. Now, if you were renting points from this person, what you've find might give me some pause given the recent flurry around commercial renting. But, I don't think it really matters whether the seller is a commercial renter/flipper of DVC contracts - they're selling to you, and when it's all said and done, the contract will belong to you. As you said, the title company should perform all appropriate checks and title insurance should also be part of the purchase process (which I would most definitely not waive on any resale purchase).

 

[AstroBlasters]

Hello! I have had an offer accepted on a second resale contract after the first didn’t make it through ROFR.

Out of interest, I searched the seller’s name on the Comptroller site to try and find the deed and do a little due diligence. I surprisingly found hundreds of contracts - some with them as the grantee and some as the grantor - and some bought/sold alone and some with others. It’s a very specific name/combination of names so I am certain they are all them. We’re talking >$1mil worth here.

I assume it’s someone buying/selling/renting commercially given the volume but I thought this was prohibited. I was also shocked to see a ton of finance agreements, most with Monera, and some liens issued too. More interestingly, I couldn’t seem to find a deed that matched the one I have offered on either.

How concerned should I be? I’m from the UK so a lot of the legal terminology is different to what I’m used to, however, I understand the title company should conduct searches etc to ensure the contract is free of debts/restrictions/liens etc.

The seller is taking their time signing the contract and sending the deed copy over to the broker too, and I am getting a little nervous!

I am intrigued. I wouldn’t worry about being a buyer.

 

[VGCgroupie]

It’s very interesting as a fellow owner. Buying shouldn’t be a problem or a red flag.

 

[VGCgroupie]

Also willing to bet the seller is the broker or has strong ties to the broker. I’d be more annoyed of them taking their time signing the contact.

 

[mkatsy]

Hello! I have had an offer accepted on a second resale contract after the first didn’t make it through ROFR.

Out of interest, I searched the seller’s name on the Comptroller site to try and find the deed and do a little due diligence. I surprisingly found hundreds of contracts - some with them as the grantee and some as the grantor - and some bought/sold alone and some with others. It’s a very specific name/combination of names so I am certain they are all them. We’re talking >$1mil worth here.

I assume it’s someone buying/selling/renting commercially given the volume but I thought this was prohibited. I was also shocked to see a ton of finance agreements, most with Monera, and some liens issued too. More interestingly, I couldn’t seem to find a deed that matched the one I have offered on either.

How concerned should I be? I’m from the UK so a lot of the legal terminology is different to what I’m used to, however, I understand the title company should conduct searches etc to ensure the contract is free of debts/restrictions/liens etc.

The seller is taking their time signing the contract and sending the deed copy over to the broker too, and I am getting a little nervous!

Like everyone else said, once you own the contract it doesn’t matter what it was used for before you got it. However, I would check your sales contract to make sure there is a clause addressing how “missing points” would be dealt with if the situation should arise. It’s simple for a family to keep track of the points on a contract, but when someone is drowning in the paperwork from hundreds of contracts, and playing games with the reservations, something could slip their mind. It might not even be intentional. There should be a dollar per point agreement to remedy any missing points at the closing.

 

[HeyJanet]

Hello! I have had an offer accepted on a second resale contract after the first didn’t make it through ROFR.

Out of interest, I searched the seller’s name on the Comptroller site to try and find the deed and do a little due diligence. I surprisingly found hundreds of contracts - some with them as the grantee and some as the grantor - and some bought/sold alone and some with others. It’s a very specific name/combination of names so I am certain they are all them. We’re talking >$1mil worth here.

I assume it’s someone buying/selling/renting commercially given the volume but I thought this was prohibited. I was also shocked to see a ton of finance agreements, most with Monera, and some liens issued too. More interestingly, I couldn’t seem to find a deed that matched the one I have offered on either.

How concerned should I be? I’m from the UK so a lot of the legal terminology is different to what I’m used to, however, I understand the title company should conduct searches etc to ensure the contract is free of debts/restrictions/liens etc.

The seller is taking their time signing the contract and sending the deed copy over to the broker too, and I am getting a little nervous!

I did the same thing lol. I was curious what was previously paid for the contract. The seller for the contract I’m buying has a unique name and hundreds of deeds came up!

The one I’m buying was bought in July of this year and they’re already selling it. The contract is stripped. Not sure how someone would make money doing this between the fees it costs to buy/sell.

 

[Cyberc1978]

I assume it’s someone buying/selling/renting commercially given the volume but I thought this was prohibited. I was also shocked to see a ton of finance agreements, most with Monera, and some liens issued too. More interestingly, I couldn’t seem to find a deed that matched the one I have offered on either.

IMO that behavior is prohibited. Buying, stripping and selling or flipping is not allowed.

You mentioned the names on the deeds were sort of unique - were they an LLC perhaps?

As other has mentioned as a buyer you shouldn’t be worried, the seller on the other hand should.

 

[cruisehopeful]

The board sponsor offers a buy now option to sellers. They resell the contracts after they buy them like flipping a house.

 

[VGCgroupie]

I did the same thing lol. I was curious what was previously paid for the contract. The seller for the contract I’m buying has a unique name and hundreds of deeds came up!

The one I’m buying was bought in July of this year and they’re already selling it. The contract is stripped. Not sure how someone would make money doing this between the fees it costs to buy/sell.

They strip the contract by renting all the points or getting money for transfers then sell it. Actually more profitable this way than selling a loaded contract.

 

[HeyJanet]

They strip the contract by renting all the points or getting money for transfers then sell it. Actually more profitable this way than selling a loaded contract.

Even if they sell the contract for less than they bought it?

 

[AstroBlasters]

Even if they sell the contract for less than they bought it?

If they are a broker then they don’t pay the fees….

 

[Sandisw]

If they are a broker then they don’t pay the fees….

To clarify for others, they wouldn’t have to pay commission to themselves, but all other fees associated with being a seller still apply.

Of course, commission is the largest part of selling.

 

[AstroBlasters]

To clarify for others, they wouldn’t have to pay commission to themselves, but all other fees associated with being a seller still apply.

Of course, commission is the largest part of selling.

Right, if they own their own brokerage and title company then the incremental cost is pretty low.

 

[VGCgroupie]

Even if they sell the contract for less than they bought it?

Every contract will be different as far as when they bought it, how long they held it etc. Along with what others said about commissions.