stupid question I shouldn't even be asking

[PottersMom]

Signed contract for one resort- now contract is available for the resort I really really want. I can get out of the contract with no penalty if I want to, (though it would kill me to do that to the sellers). What to do?
Details:
Contract I signed for comes with points banked from last year- so right off the bat we are getting double points for our first trip this fall. We don't need double points for upcomming trip, but it will affect the type of trip.

I know nothing about new contract- cant call the real estate people until morning. Don't know the use year or available points. MF are lower at this resort.
REALLY would like advice...

 

[Dean]

To a degree it depends on whether it's retail or resale. Legally you can back out within 10 days from when you signed the contract but my view is that to back out on a resale because you founds another contract you like better is inappropriate. If it's retail through DVC it's not a big deal because you're giving the same company the business. I'd also think most resellers wouldn't work with you to change in this situation.

 

[PottersMom]

The advice I was looking for was if anyone thought it would make a difference for me to own a the "resort i will want to stay at 80% of the time", or the resort where you get the best deal (contract of discussion).
Pro:
The contract we signed comes with 40 banked points and 40 current points.
Con:
DH and I will never stay at this resort because we live here, our family will stay here when they visit if we have the points. We won't use the "home booking advantage". MF are higher, on this size contract this is not much of a factor.

*We will usually want to stay in a studio or 1br at OKW, typically in the fall. *We can book at the 11mo. window, but usually book 6 months out to save $ for our trip.
We have never taken a DVC vacation. Does it make any difference where our home resort is? My fear is, when we have children, and they are in school, we will have to travel when everyone else does, and not having a "home booking advantage" anywhere in Orlando may become a problem. On the Flip side, we are planning on buying more points at AKV in a year or so.
I took my commitment to the contract very seriously, and I still do. I would feel bad that the sellers lost their deal, but they will find another buyer. I don't want to make my finacial decisions based on how they make others "feel". I want to make the decision that will be the best for my family. I'm hoping some of you can help me decide.

 

[Dean]

The advice I was looking for was if anyone thought it would make a difference for me to own a the "resort i will want to stay at 80% of the time", or the resort where you get the best deal (contract of discussion).
Pro:
The contract we signed comes with 40 banked points and 40 current points.
Con:
DH and I will never stay at this resort because we live here, our family will stay here when they visit if we have the points. We won't use the "home booking advantage". MF are higher, on this size contract this is not much of a factor.

*We will usually want to stay in a studio or 1br at OKW, typically in the fall. *We can book at the 11mo. window, but usually book 6 months out to save $ for our trip.
We have never taken a DVC vacation. Does it make any difference where our home resort is? My fear is, when we have children, and they are in school, we will have to travel when everyone else does, and not having a "home booking advantage" anywhere in Orlando may become a problem. On the Flip side, we are planning on buying more points at AKV in a year or so.
I took my commitment to the contract very seriously, and I still do. I would feel bad that the sellers lost their deal, but they will find another buyer. I don't want to make my finacial decisions based on how they make others "feel". I want to make the decision that will be the best for my family. I'm hoping some of you can help me decide.

My feelings on backing out of the contract haven't changed. Your home resort is important for some options and not for others. For OKW in a studio or 1 BR you can own mostly anywhere so you would likely be better off owning something you could use part of the time, likely a higher demand resort like AKV.

 

[wisbucky]

I totally agree with Dean that backing out of a contract with the seller is inappropriate for sure. Since you plan at buying at AKV in the future and your family is staying on the contract you are buying now, I think you are safe. This is a small contract that you can always resell if you decide done the road that you really dont want it.

 

[dis-happy]

If you "really wanted" the OTHER resort, why didn't you wait until a contract became available?

IMO you signed a contract and there should be a financial penalty to back out. Didn't you have to send in a deposit with the contract? I imagine the resale company can hold it for damages.

 

[PottersMom]

There is no penalty- it says in bold print that there is no penalty. I was told that I could use my deposit toward another contract if this one fell through. (Though I agree that our making a decision to cancel the contract is not the same thing).
I got cold feet last night. I was looking at all of the pictures of the resorts and it started echoing in my mind, "buy where you want to stay, buy where you want to stay" and I started to think - what happens when our family situation changes and we aren't able to vacation the way we do now?? I just didn't want to make a very expensive mistake.
After thinking on it for a while I have come to the same conclusion that wisbucky did above- that since we will be buying at AKV in the future, what we have will work fine for us now. I know we will definately buy another contract before our children are in school so our habits shouldn't change dramatically until we buy into our next contract. The whole thing is a little scary- you think you have it all figured out and then you hear something and think - what if that happens to me???? Sorry to bother you with my dilema- I didn't realize everybody would react like I was over here tortureing puppies or something. I didn't think the resale company would make it so clear and easy to opt out if it was such a scandalous option. I know it's a very serious commitment, but I feel that, if either party isn't 100% about it, AT ANY POINT- they should be able to change their mind without penalty. Sorry to get everyone riled up!

 

[GAN]

There is a reason you are given the option to opt out at any time, I suggest you take advantage of that right and buy where you wish to stay. While I don't think it is the best "business" to opt out, I definitely don't think it is inappropriate -why should you live with something(a potential contract) you aren't comfortable with for the next 30/40 years. This is why the option to back out exists. The downside is that these people you are dealing with probably won't want to deal with you in the future, but I wouldn't think you are looking to become a long time customer -it's a one-shot deal. If I were the seller, while I without question want to unload my contract, I would still want to feel like you were happy with your purchase from me. Do what is best for you -the sellers will find another buyer who is thrilled to own HHI.

 

[JimMIA]

There is nothing inappropriate about exercising your statutory rights in a business transaction. The 10-day recision period written into Florida law was put there specifically to give you the ability to change your mind -- for good reason, bad reason, or no reason at all. If you buy direct from Disney, they go beyond the statutory minimum and allow you 14 days to rescind.

I do think Dean is correct that you would not have any problems in using HHI points at OKW. If you were wanting to stay at another resort, I'd be more concerned, but for OKW and SSR, I don't think you'll have a problem.

As far as the banked points, you may not need them but that doesn't mean they're not useful. You may be able to use the banked points for your upcoming trip and then bank your current year points into next year, which would be a significant benefit -- especially if you have relatives who want to stay at HHI during a UY when you also want to visit OKW.

 

[Chuck S]

There is nothing inappropriate about exercising your statutory rights in a business transaction. The 10-day recision period written into Florida law was put there specifically to give you the ability to change your mind -- for good reason, bad reason, or no reason at all. If you buy direct from Disney, they go beyond the statutory minimum and allow you 14 days to rescind.

I do think Dean is correct that you would not have any problems in using HHI points at OKW. If you were wanting to stay at another resort, I'd be more concerned, but for OKW and SSR, I don't think you'll have a problem.

As far as the banked points, you may not need them but that doesn't mean they're not useful. You may be able to use the banked points for your upcoming trip and then bank your current year points into next year, which would be a significant benefit -- especially if you have relatives who want to stay at HHI during a UY when you also want to visit OKW.

Interesting law they have in FL. Jim does that apply to all real estate transactions? Here in Texas if you make an offer, you put up "earnest money" and will lose that if you back out, whether you buy with or without a broker.

I thought (obviously incorrectly) the 10 day law applied only to timeshares purchased directly from the developer and their agents.

 

[JimMIA]

Interesting law they have in FL. Jim does that apply to all real estate transactions? Here in Texas if you make an offer, you put up "earnest money" and will lose that if you back out, whether you buy with or without a broker.

I thought (obviously incorrectly) the 10 day law applied only to timeshares purchased directly from the developer and their agents.

I'm not sure about ALL real estate contracts, but the law is quite clear with timeshares, and it covers both original sales by the developer (FSS 721.06) and resale (FSS 721.065). There's a 10-day recision in both sections of the statute -- one for developer sales, and the other for resales.

 

[dis-happy]

I'm sorry if your feelings were hurt. From your post ( that mentions no children yet) it sounds like you are young and maybe inexperienced. Please know that for real estate transactions in general when you sign a contract it is binding and it's not a matter of whether or not you are happy about it you can't just change your mind "at any point". Although not buying a house, buying DVC is still a real estate transaction. That said, it sounds like you do have the choice of changing your mind due to the timeshare rules in Florida.

I'm still not sure if you can get out without any penalty---it sounds like your resale company won't refund your money but just allow you to transfer it to a different contract? If so, I would seriously consider doing so. I too live in HH (during the summer months) and depending on where you live you may not ever want to book the resort (I've visited friends at the resort but haven't stayed there, although we may burn a few excess points there this year while our villa is under renovation). It would be extremely generous of you to book rooms for your friends and family during the summer months, but also costly. And there are lots of cases where DVC members have booked for family members, had them bail at the last minute, and then the member is stuck with unusable points. In the meantime, WDW is only 5 hours away, and if you want to use your 40 points to, say, book 5 nights in a studio at OKW the beginning of December, you will need the 11 month window. With more members being added every day (along with the huge size of SSR and the new AKV) those rooms with lower points are going to become more and more popular and desirable. It's already very difficult to book BWV standard for that reason (plus the location).

Finally, for anyone who's been around here for awhile, there are regularly posts from people upset with their DVC purchase (and blaming everything and everyone), but the fault is that they didn't do their homework FIRST. They just jumped in and didn't get all the facts and all the downsides along with the upsides. Make sure that what you're doing is right for you, it will be costly to undo it later once the investment is made. On the upside, if you know what you're getting in to, and love Disney, it will be the best purchase you ever made!

Best wishes and hope it all works out for you.

 

[JimMIA]

Please know that for real estate transactions in general when you sign a contract it is binding and it's not a matter of whether or not you are happy about it you can't just change your mind "at any point".

You can't change your mind "at any point," but you certainly CAN change your mind with no penalty of any kind within ten days of signing a purchase contract.

[ETA: The realtor can't hold your deposit and only allow you to apply it to a future purchase. They have to refund it in full, no questions asked. If they refuse, I can't begin to tell you how much jeopardy their license is in!]

Here's a link to Florida Statute 721, which provides an absolute 10-day recision period for both developer and resale timeshare transactions. http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=Ch0721/ch0721.htm

As stated above, see sections 721.06 for developer sales and 721.065 for resales.

 

[CarolMN]

I'm not sure about ALL real estate contracts, but the law is quite clear with timeshares, and it covers both original sales by the developer (FSS 721.06) and resale (FSS 721.065). There's a 10-day recision in both sections of the statute -- one for developer sales, and the other for resales.

Maybe that is one of the reasons that resale purchases take so long relativce to purchases direct from Disney - resales have to wait out that recision timeframe before closing.

Even though the law applies to Disney, they obviously can allow reservations right away (for stays that occur after closing) and not have a problem if the buyer backs out. Not true for resales.

 

[Judique]

The advice I was looking for was if anyone thought it would make a difference for me to own a the "resort i will want to stay at 80% of the time", or the resort where you get the best deal (contract of discussion).
Pro:
The contract we signed comes with 40 banked points and 40 current points.
Con:
DH and I will never stay at this resort because we live here, our family will stay here when they visit if we have the points. We won't use the "home booking advantage". MF are higher, on this size contract this is not much of a factor.

*We will usually want to stay in a studio or 1br at OKW, typically in the fall. *We can book at the 11mo. window, but usually book 6 months out to save $ for our trip.
We have never taken a DVC vacation. Does it make any difference where our home resort is? My fear is, when we have children, and they are in school, we will have to travel when everyone else does, and not having a "home booking advantage" anywhere in Orlando may become a problem. On the Flip side, we are planning on buying more points at AKV in a year or so.
I took my commitment to the contract very seriously, and I still do. I would feel bad that the sellers lost their deal, but they will find another buyer. I don't want to make my finacial decisions based on how they make others "feel". I want to make the decision that will be the best for my family. I'm hoping some of you can help me decide.

If I were you, I would probably go ahead with the contract. (I am assuming it is a 40 point HH contract with the 40 banked and current points.) That is a small 'entry fee' into DVC. On 40 points the difference in MF fees that you pay will be so minimal per year -maybe 20 bucks a year? Then you will be able to do your add ons as you can afford them at the other DVC's. On such a small contract, going through the hassle of negotiating again is almost not worth it. You mentioned OKW...you will more then likely always get what you can buy with 40 points there at 7months. On the flip side, if you live in SC, having a few points for a break at HH is great. You need the 11 month advantage for summers and some holidays at HH.