Seller used points AFTER estoppel

[andrea7884]

We recently purchased a DVC contract that was supposed to come with 300 banked points. The fact that we would receive the banked points was explicitly written in to the contract. At estoppel, the points were there, and we closed. About 4 weeks after closing, the realtor just told us that DVC had sent the contract back because the seller had transferred the points to RCI and that was different than our contract, so they couldn't create a membership account unless we signed an addendum stating we won't get the points. The points were important to us because we wanted to rent them to offset the cost of the timeshare. Does anyone have any advice? I think we are entitled to unwind the deal because the seller voided out contract by using the points, but that process seems messy. I still don't have all the information because Disney won't talk to me (not a member yet) and the realty company keeps telling me different stories.

Also, I thought Disney was supposed to freeze the account at estoppel? Is that wrong?

 

[andrea7884]

Also, if we negotiate cash compensation for the points, does anyone know if that sends us back through ROFR?

 

[mustinjourney]

I'd want a $15 per point discount and if they didn't give that, then I'd consider it a breach of contract and back out. It sucks to waste 2 or 3 months -- but 300 points is a lot to lose. It drastically changes the terms of the deal.

Some people will say it'll have to go back to ROFR if you get the discount-- but I have no idea. Perhaps this is a special situation with the addenda, wherein the addenda states that that the contract has 300 less points, but the price of the contract has been discounted $xx per point? Presumably if you send that into Disney and they approve it, I would think it would be ok. But I have no first hand experience with this.

 

[andrea7884]

We asked for $10/point but the realtor says we WILL have to go to ROFR all over again. Which I don't quite understand as technically we do own the property already. It sounds like we even owned it when the seller transferred the points out, but Disneys system hadnt caught up yet or something.

 

[andrea7884]

And I agree that 300 points drastically changes the deal. The realtor at first said it didn't matter because we didn't pay for those points anyway, we were paying for future points and those were thrown in as a free bonus.

 

[Tinker06]

I would assume it is now breech of contract and I would back out of the deal. You can find others to purchase and I would not purchase from these people now solely on principal.

 

[PSUDinsey]

Call RCI and tell them the points were trsnsferred wrongly as you are the owner and didn't transfer them.

 

[andrea7884]

Well the tricky thing is we already HAVE purchased from them. In fact, it appears we owned the property already when they transferred the points. So we have to somehow sell it back to them and that seems so complicated! Anyone have any experience with that process?

And it definitely is breach of contract. Everyone agrees on that point.

 

[Marionnette]

Well the tricky thing is we already HAVE purchased from them. In fact, it appears we owned the property already when they transferred the points. So we have to somehow sell it back to them and that seems so complicated! Anyone have any experience with that process?

And it definitely is breach of contract. Everyone agrees on that point.

If you already own the property, then why would it need to go to ROFR again? This doesn't pass the smell test.

 

[wdrl]

Had you actually closed on the real estate transaction before the seller transferred points into RCI?

By the way, DVC does not freeze an account simply because it is going through estoppel. A pending real estate transaction may not close and easy not actually change ownership.

 

[ldo]

personally, I would send an unequivocal letter stating that sellar committed a material breach of the contract and demand a full refund to both the realtor and escrow company. I would not want to even try to "work it out" for a discount, etc. Shame on that sellar.

 

[PSUDinsey]

I am curious to who the realtor was who was just like ahh oh well those points were not really what you paid for anyways.

You can also call your states and Florida's attorney general office as this is fraud.

 

[mustinjourney]

have you tried contacting disney and seeing what they say? As far as the Realtor telling you something -- quite frankly, a lot of them don't know what they're talking about. I had to educate the realtor and the escrow agent on my last resale deal on various things, including federal laws.

 

[rothesay]

Wow this is wild. Especially money has already been exchanged and you are already on title. I wonder if something like this would be covered under title insurance.

 

[mustinjourney]

Wow this is wild. Especially money has already been exchanged and you are already on title. I wonder if something like this would be covered under title insurance.

doubtful. Title insurance only covers things that would be in the public record, such as liens or whether the seller is the actual owner.

 

[Deb & Bill]

You may have to sue the original owners for the value of the points. If you contact RCI does it show you to own the points? Or does the original owners own them?

 

[andrea7884]

You may have to sue the original owners for the value of the points. If you contact RCI does it show you to own the points? Or does the original owners own them?

The realtor told me that neither me nor the seller can use the RCI points, as they are non transferable and the sellers account will close once the sale is finalized.

 

[andrea7884]

have you tried contacting disney and seeing what they say? As far as the Realtor telling you something -- quite frankly, a lot of them don't know what they're talking about. I had to educate the realtor and the escrow agent on my last resale deal on various things, including federal laws.

Disney will not talk to me because they have not created the member account yet. They won't create the account until this is sorted out because right now the sale contract and the DVC contract don't match. Catch 22 isn't it? They said to go through the realtor and/or closing company.

 

[andrea7884]

I am curious to who the realtor was who was just like ahh oh well those points were not really what you paid for anyways.

You can also call your states and Florida's attorney general office as this is fraud.

It was Richard Cusani.

 

[andrea7884]

Had you actually closed on the real estate transaction before the seller transferred points into RCI?

By the way, DVC does not freeze an account simply because it is going through estoppel. A pending real estate transaction may not close and easy not actually change ownership.

I am going by what I can pry out of the realtor, because Disney will not talk with me directly until the membership is finalized. But I believe we had already closed. I know the deed was filed in July according to the public record, and this RCI transfer seems to have happened in August, although I can't get a specific date. It happened before Disney processed the change in account though.