Seller has not returned paperwork

[KAT4DISNEY]

What's up with these sellers? When I bought my home, the agent/broker's commissions and various fees came out of my payment to seller, so seller didn't have to pay out of pocket. The last 2 DVC contracts I read had similar wording. Either way if they renege they'll be on the hook for the commission to the broker.

A case where they're upside down would be that the payment from the buyer isn't going to cover the mortgage repayment and fees of selling. Then it has to come out of pocket from the seller.

 

[supersnoop]

My broker is sending a full refund tomorrow unless by some "miracle" the notarized docs show up. This seller is in a big mess as he still has two other contracts U/A he isn't closing on either. As of tomorrow, he owes the broker the commission for the two contracts he didn't sign for us. I wonder if he finally closes a contract, if the broker can take the commission he owes for these two contracts out of one of the others. I still haven't been told what the issue is. He's going backwards - quickly.

Edit: Just got another note from broker. They have heard NOTHING from seller. Will send $$ back and give us first dibs if he "ever" sends them back.

I hope it goes well for you. Is this a Hilton Head contract? I had a really terrible time when a seller backed out of an HHI contract. The attorney wouldn't release my funds because of some South Carolina law that requires the seller to confirm in writing that the deal isn't happening. It turned into a frustrating situation, but the broker was eventually able to clear it up.

 

[RoseGold]

What's up with these sellers? When I bought my home, the agent/broker's commissions and various fees came out of my payment to seller, so seller didn't have to pay out of pocket.

While this feels like a home, the math is more like a car, because it is a depreciating asset. It hasn't acted like it lately, but it will eventually. Any contract bought right now will be instantly underwater with sales commissions and closing costs from buying. The math is even worse if you bought direct recently or financed.

Even a contract that has done pretty well, like Poly or VGF, which has largely held value over the last few years, could be underwater if it was financed, or could be pushed just over the edge with closing/commission. Especially with some of those loans so expensive they are predatory. Financing can help flip the math on whether a contract is underwater.

There are many scenarios that would require sellers to bring money to the table, and I think it's fair to say most buyers aren't as savvy as those on these boards. But hey, free ice cream machine!

 

[Bruggok]

Thank you all for your gentle answers to my ignorant post. I now see a possible reason why some sellers I've ran into, had been quite firm on their sales price, which started rather high. I totally had not considered the possibility that they might be underwater and trapped between paying yearly dues versus coming up with money to pay off the loan, neither of which they can afford.

 

[gisele2]

If I buy resale again I am definitely telling the title company that I’ll send my payment after the seller sends in their papers. I’ve heard too many stories like this lately! Last time we bought resale the seller took almost 2 weeks to send in their papers while we wired our funds the day after getting closing docs. That’s way too much money to be tied up like that!

That is what I am doing and the broker tought is was normal.

 

[MICKIMINI]

I hope it goes well for you. Is this a Hilton Head contract? I had a really terrible time when a seller backed out of an HHI contract. The attorney wouldn't release my funds because of some South Carolina law that requires the seller to confirm in writing that the deal isn't happening. It turned into a frustrating situation, but the broker was eventually able to clear it up.

OKW contracts so FL. We are buying a HHI which is in ROFR...I'll now hold my breath until that closes LOL!

 

[MICKIMINI]

Closing on two 25 point OKW contracts next week! Deadbeat seller finally shipped his docs this morning. He didn't have the courtesy to tell the broker even yesterday and left us hanging. Broker had planned to send $$ back today. It will be a month that they have had our $$. We still don't have an explanation and at this point don't really care. I can see this happening more often...it had to be a cashflow issue (maybe he got paid today).

I'll hold the money back on the HHI contract we are buying which will close more than likely next month. The same closing agent (different broker) is handling closing so I don't need to do much explaining.

The funny part is, I reminded the broker MF's will be less and after they checked into it we'll save a whopping $41 for the 2021 MF's we have to prepay.

 

[Salf777]

Thanks for this story and sorry for your pain.
I have an accepted offer that passed ROFR and was going to just wire the funds while waiting to close. our closing isn’t until after Jan 1st but seller hasn’t signed closing docs yet (only been about 10 days since we signed) however based on your cautionary tale I will wait until seller signs closing docs to wire balance of funds!

 

[MICKIMINI]

Thanks for this story and sorry for your pain.
I have an accepted offer that passed ROFR and was going to just wire the funds while waiting to close. our closing isn’t until after Jan 1st but seller hasn’t signed closing docs yet (only been about 10 days since we signed) however based on your cautionary tale I will wait until seller signs closing docs to wire balance of funds!

Smart move! Our first DVC was OKW in 1996. We've bought quite a few resales since and I think it is just luck of the draw. We got a bum seller. The broker asked for $$ yesterday to cover 2021 MF's at closing and I told them I will wait until they get the sellers documents which are "in the mail" to see if they are correct before I send another dollar. If it delays closing a day or two, no problem.

If we lost it, it wouldn't be the end of the world. It is a good reminder that things happen beyond your control. Resales are great. Having a good professional relationship with your broker is essential.

 

[MICKIMINI]

I thought I would give an update: The broker received properly signed closing docs from the seller today. I paid the 2021 MF's and we close this Friday. Apparently the seller returned docs for all four contracts he is selling at once - all about a month late!