Selling DVC, waiting for buyers to pay...

[Laurabearz]

We are selling some of our DVC points. We sent in the final paperwork a month ago, and now waiting for the buyers to send in theirs and pay. Is there a time limit on how long they have to pay? We are going on a month now.
Thanks

 

[Dean]

Closing should be specified the contract. If they miss the deadline specified technically the contract would be void and they would forfeit their deposit.

 

[Laurabearz]

Would that be the "Settlement date"? And if they forfeit, do we get the deposit? haha

 

[dvcmom14]

Usually in the purchase agreement it specifies a "closing date no later than" to give you an idea.

 

[Dean]

Would that be the "Settlement date"? And if they forfeit, do we get the deposit? haha

The contract itself should say something to the effect of either a time frame or date for closing. Normally it's in the range of 2 months from the date all parties signed since ROFR need at least 30 days.

 

[LisaS]

Would that be the "Settlement date"? And if they forfeit, do we get the deposit? haha

The contract you signed should spell out what happens to the deposit if the buyer backs out. For example it might state that the title agency can keep part of the deposit to cover costs they have incurred (up to a specified maximum dollar amount) and then whatever is left is split between the broker and the seller. Look at the initial paperwork that you signed back when you accepted the buyer's offer.

 

[KAT4DISNEY]

I had a buyer keep having excuses about paying. Finally said enough after we were past the close by deadline and though I was entitled to the deposit both the broker and I let them have it back.

 

[Laurabearz]

The contract you signed should spell out what happens to the deposit if the buyer backs out. For example it might state that the title agency can keep part of the deposit to cover costs they have incurred (up to a specified maximum dollar amount) and then whatever is left is split between the broker and the seller. Look at the initial paperwork that you signed back when you accepted the buyer's offer.

I had to go back and find the original docs... they give an Oct 21st closing date, and it gives details about what happens with the deposit.

 

[LisaS]

I had to go back and find the original docs... they give an Oct 21st closing date, and it gives details about what happens with the deposit.

Glad you found it. I'm in the process of selling a contract and I paid particular attention to this issue when reviewing the documents prior to signing. My contract has some banked points and if the buyer backs out and I have to start over with a new buyer, my banked points will probably be worth less money because they will be 2-3 months closer to their expiration date. Any proceeds I received from the buyer's deposit would help compensate for a potentially lower sale price due to the shorter life span of those banked points.

I hope everything works out for you. I'm discovering that waiting to get through the sales process is as nerve racking as when I went through the waiting process as a buyer on my very first DVC contract.

 

[Deb & Bill]

I got half the buyer's deposit twice when two different buyers backed out of buying after ROFR was passed. The other half went to the selling agent.

 

[Counterfiend]

I would contact the agent that you are using to handle the purchase. Surely there is an agent involved no?

 

[ustasmom]

I'm on the other side of this problem. My seller hasn't signed and returned the contract which dies tomorrow. Sigh!

 

[jnjhuddle]

I'm on the other side of this problem. My seller hasn't signed and returned the contract which dies tomorrow. Sigh!

Ugh! Fingers crossed for you!!

 

[Minniesgal]

I sold some points at Easter time this year and with ROFR delays and waiting 6 weeks for closing documents. Our closing date was passed before we even received closing documents so you can still close after the date of both parties return them

 

[MoreTravels]

Since it is a civil matter to sell and transfer titles, the deadline is always extendable as long as BOTH parties agree to it. Otherwise it can be used as a termination clause to kill the deal. So question really comes down to, do you still trust the other side and still want to complete it? If yes, you then work out an extension. If not, send your termination notice and move on.