Seller still waiting on proceeds from Title Company.

[RavenRob]

My closing date was June 3rd and Deed was recorded on June 10th. My account no longer appears on the DVC website and MS confirms that I am no longer in the system as of yesterday. Anyone have an idea when title company will release the funds? They informed me that I am very close. I don't understand why they have to wait to release the funds. Any suggestions are appreciated.

 

[Great3]

Would you mind sharing the title company's name? That really doesn't sound right. They shouldn't close a transaction without certified funds in hand. The buyer should have paid via wire transfer or cashier's check. When closing the transaction, they should be cutting the proceeds to you pretty much right away (certainly within 2-3 business days). Did you elect to receive the funds via wire transfer or cashier's check? If by cashier's check, maybe somehow it got lost in the mail. If via wire transfer, something must have gone wrong with the wire instructions. If the title company really did neither yet, than please share which title company needs to be avoided. I would involve the broker and ask them as well. How much longer a wait are they saying?

Good Luck with this.

Great3

 

[dvcsince93]

Not sure which company you used. I would call them. Sounds familiar.

One company I used tried to hold the funds on a sale for 3+ weeks. Since I had sold before and received the funds in 2 days from another title company, that seemed odd.

When confronted, the title company says they hold the money in escrow until DVC puts the points in the buyers account. Their stated rationale is that the contract is not complete until the buyer gets the points. As a lawyer, albeit not a real estate lawyer, that statement doesn't past the smell test.

The contract is complete when it closes. As a seller, you have no control over when DVC decides to put the points into the buyer's account. Also, having worked with other title companies, I know they release the money on the day the transaction closes. So, this company holds your money for literally weeks for no legit reason.

When I complained, a rep of the real estate agent (who chose the title company) said that they did it to prevent sellers from accessing their DVC account and moving points after closing. While that sounds more likely, it is still not acceptable.

After complaing, they did send the money as soon as the deed was recorded, so 3 days as opposed to three weeks. Bottom line, I will never use that title company again.

 

[lovin'fl]

I just sold. Disney took it in ROFR and I sent the closing docs back to them on like June 8. Today was the closing date listed on my original contract. I had to call MS today for something so I also asked when we'd get our check and was told they sent it via FedEx yesterday. It was supposed to arrive today but the tracking number says it's delayed due to storms. Uggh. But earlier today the points were still in my account (we own other contracts and the sold one is still there).

 

[GoofyCoaster]

The purchase agreement signed by both parties specifies the number of points available and the one I signed specifically stated the seller pays $20 per point for any missing points at closing and transfer. So I could potentially see a title company waiting until the transfer is complete, in the event that points are missing and some of the funds need to be withheld and returned to the buyer. But the cynical part of me thinks delays are for the financial benefit of the title company (cash flow, earned interest, etc).

 

[hichicha]

As a buyer I waited almost 2 weeks to get my points then I called Member Administration and they told me there was a problem and I should contact broker or title company. I contacted title company and they told me there was an error in the deed and we'd have to file a corrective deed. That meant the seller had to sign the corrective deed AFTER having received funds. I had major anxiety worrying that there was no incentive for seller to even sign the corrective deed. The seller eventually did but I couldn't help but wonder how it's possible for the seller to receive my money when I don't have access to the contract I purchased.

 

[Great3]

As a buyer I waited almost 2 weeks to get my points then I called Member Administration and they told me there was a problem and I should contact broker or title company. I contacted title company and they told me there was an error in the deed and we'd have to file a corrective deed. That meant the seller had to sign the corrective deed AFTER having received funds. I had major anxiety worrying that there was no incentive for seller to even sign the corrective deed. The seller eventually did but I couldn't help but wonder how it's possible for the seller to receive my money when I don't have access to the contract I purchased.

I can understand your feeling as the buyer, but that's on the title company. They should have caught any errors before closing the transaction, not afterwards. I understand mistakes happens, but it usually due to not enough attention to details on the part of the title company, unless there was willful misrepresentation on the seller's part. In that case, that's what title insurance is for. Of course, the seller need to make any correction necessary (it's required as part of the contract you and seller sign with the title company), or the title company have recourse to go after the seller to recover the money. While a pain to deal it, as a buyer, this part doesn't worry me other than when you are in a hurry to plan your vacation and use the points.

Great3

 

[Frederic Civish]

If you have any problems with the Title Company, then CALL YOUR BROKER. Remind them that THEY chose the Title Company, so it is their responsibility to make sure the Title Company performs.

I have purchased 5 contracts on the open market and have never had a problem. I also have always made sure that I did obtain the name and phone number of the Title Company, as well as whoever it was at the title company who was working with me. I have called and talked to them a few times, just to check up on the status of things.

 

[gscott8075]

We waited several weeks but it all worked out.

 

[lovin'fl]

I just sold. Disney took it in ROFR and I sent the closing docs back to them on like June 8. Today was the closing date listed on my original contract. I had to call MS today for something so I also asked when we'd get our check and was told they sent it via FedEx yesterday. It was supposed to arrive today but the tracking number says it's delayed due to storms. Uggh. But earlier today the points were still in my account (we own other contracts and the sold one is still there).

Got our check on Friday. Deposited. But still no deed change thing on the OCC site and points are still in my DVC account. I suspect they'll disappear next week sometime.