Seller has reservation

[ptlohmysoul]

What happens when you offer to purchase dvc resale and the owner has a reservation booked?

 

[ScubaCat]

It'll be automatically canceled at closing.

https://disneyvacationclub.disney.go.com/faq/reselling/pending-reservations/

 

[supersnoop]

Or they can't close until afterwards.

 

[ptlohmysoul]

The "must close by" date in the contract is over a month after their reservation, so everything should be ok?

 

[gillep]

We just purchased a resale contract at BCV where the seller had a pre-existing reservation, although we passed ROFR in February, it was written into the contract that we could not close until the day after their vacation ended, which was a little over two months later. Our contract ended up officially closing a couple days after their vacation, and our points were loaded into our account last week! As long as everything is outlined in the contract I wouldn't worry about it.

 

[KAT4DISNEY]

If they have it listed to close after the reservation then the contract will still go to ROFR right away. If it passes then you wait to close after the reservation is completed.

 

[LAX]

If they have it listed to close after the reservation then the contract will still go to ROFR right away. If it passes then you wait to close after the reservation is completed.

The seller would still have access to the points until the sale is closed right? What's to prevent the sellers from adding an extra day or two after it has passed ROFR (essentially using the buyer's points)? I know the buyer can always back out if something like that were to happen, but that would be extra wait time wasted.

LAX

 

[CarolMN]

The seller would still have access to the points until the sale is closed right? What's to prevent the sellers from adding an extra day or two after it has passed ROFR (essentially using the buyer's points)? I know the buyer can always back out if something like that were to happen, but that would be extra wait time wasted.

LAX

Some have been adding clauses to the contract that if points are missing, there is a penalty charged to the seller of "$$" per point. The last one I remember had those missing points at $18 each or the deal would be cancelled with the seller still paying commission and the entire deposit returned to the buyer.. The penalty amount would be deducted from the purchase price (Not sure what the agreement was re the broker's commission if it happened). While the seller could still use the points, it could end up to be very costly for the seller, depending on the penalty cost. While it could still happen and the missing points a large disappointment to a buyer who was counting on them, at least the price of the contract would be significantly lower

FWIW, the seller using points after a purchase agreement seems to be a very rare occurrence. It's not something I would personally worry about too much.

 

[miTnosnhoJ]

Some have been adding clauses to the contract that if points are missing, there is a penalty charged to the seller of "$$" per point. The last one I remember had those missing points at $18 each or the deal would be cancelled with the seller still paying commission and the entire deposit returned to the buyer.. The penalty amount would be deducted from the purchase price (Not sure what the agreement was re the broker's commission if it happened). While the seller could still use the points, it could end up to be very costly for the seller, depending on the penalty cost. While it could still happen and the missing points a large disappointment to a buyer who was counting on them, at least the price of the contract would be significantly lower

FWIW, the seller using points after a purchase agreement seems to be a very rare occurrence. It's not something I would personally worry about too much.

Rare, but it could happen if they were on the wait list.

 

[msjprincess]

If they have it listed to close after the reservation then the contract will still go to ROFR right away. If it passes then you wait to close after the reservation is completed.

That's what happened with one of my contracts. It passed ROFR in less 2 weeks but we had to wait to close until the seller completed their vacation 5 weeks later. It closed the day after their vacation.

 

[LAX]

Some have been adding clauses to the contract that if points are missing, there is a penalty charged to the seller of "$$" per point. The last one I remember had those missing points at $18 each or the deal would be cancelled with the seller still paying commission and the entire deposit returned to the buyer.. The penalty amount would be deducted from the purchase price (Not sure what the agreement was re the broker's commission if it happened). While the seller could still use the points, it could end up to be very costly for the seller, depending on the penalty cost. While it could still happen and the missing points a large disappointment to a buyer who was counting on them, at least the price of the contract would be significantly lower

FWIW, the seller using points after a purchase agreement seems to be a very rare occurrence. It's not something I would personally worry about too much.

My point is that once the contract "passes" DVD (ie: ROFR, Estoppel, etc.), there aren't any other safety measures in place to protect the buyer other than the penalty written into the contract. By lengthening time between closing and these checks that DVD does, the buyer may run a higher risk than if everything closes shortly after that process. Unless, of course, the Estoppel is not done until just before the sale closes.

LAX

 

[KAT4DISNEY]

My point is that once the contract "passes" DVD (ie: ROFR, Estoppel, etc.), there aren't any other safety measures in place to protect the buyer other than the penalty written into the contract. By lengthening time between closing and these checks that DVD does, the buyer may run a higher risk than if everything closes shortly after that process. Unless, of course, the Estoppel is not done until just before the sale closes.

LAX

Estoppel should not be done until time of closing.

 

[LAX]

Estoppel should not be done until time of closing.

Some have reported closing happening shortly after planned vacation has ended, so can Estoppel happen that quickly?

LAX

 

[wdrl]

FYI - Aulani allows for a pending reservation to be transferred from the seller to the buyer after closing if both parties agree to it. Aulani is the only resort that has that clause in its Master Declaration.

 

[Dean]

My point is that once the contract "passes" DVD (ie: ROFR, Estoppel, etc.), there aren't any other safety measures in place to protect the buyer other than the penalty written into the contract. By lengthening time between closing and these checks that DVD does, the buyer may run a higher risk than if everything closes shortly after that process. Unless, of course, the Estoppel is not done until just before the sale closes.

LAX

There are no legal protections as I understand it. I'm aware of timeshare weeks selling and the seller using or depositing the week during the sale or even after. DVC won't normally complete the transfer unless all is in order so this is less of an issue with DVC but it could void a sale. There was a recent issue where it went to the actual transfer process on DVC's end and things were not right. I know it was resolved but it didn't seem easy and either I don't recall the solution or it wasn't published here and I'm thinking the answer wasn't posted here. Maybe that person, or someone who knows what happened, will see this and PM you.