They did what?! Resale issues

[EE_Mom]

So we were in the process of buying a resale contract at the Poly. It had about 3/4 contract year points banked and a full year for the upcoming use year. We made an offer, passed ROFR, received/signed/returned closing paperwork and money to close about 2 weeks after we got them. It was not easy finding a notary and witnesses with many banks having their lobbies closed. After our closing paperwork was received we waited a bit and didn't hear anything. We inquired and found out the seller had not returned their closing paperwork yet. A day or so later we were informed the sellers had sent their documents and they would be received the following day.

Great!

Well, a few days later I had a missed call from our agent. I thought maybe we missed a signature or something on our paperwork. It turns out in the time between accepting our offer and closing the sellers decided to take a few vacations and had used up all of the banked points and part of the upcoming year. The agent was checking the points balance before closing and discovered the discrepancy. Our agent has been very helpful and responsive. I don't get it, were the sellers trying to pull a fast one hoping no one would notice? They used almost a full contract year's worth of points. We had already been planning our upcoming vacations based on the point balances in the contract. We put in an offer to be reimbursed to continue the transaction. We are pretty disappointed considering the amount of time invested in this whole process but we are prepared to walk away. Unfortunately, there isn't much on the market right now that suits what we want and need. If they don't accept our offer we will probably wait until early next year to try again. I don't have the emotional energy to start over right now.

Has anyone dealt with an issue like this and what was your outcome?

 

[db24]

So we were in the process of buying a resale contract at the Poly. It had about 3/4 contract year points banked and a full year for the upcoming use year. We made an offer, passed ROFR, received/signed/returned closing paperwork and money to close about 2 weeks after we got them. It was not easy finding a notary and witnesses with many banks having their lobbies closed. After our closing paperwork was received we waited a bit and didn't hear anything. We inquired and found out the seller had not returned their closing paperwork yet. A day or so later we were informed the sellers had sent their documents and they would be received the following day.

Great!

Well, a few days later I had a missed call from our agent. I thought maybe we missed a signature or something on our paperwork. It turns out in the time between accepting our offer and closing the sellers decided to take a few vacations and had used up all of the banked points and part of the upcoming year. The agent was checking the points balance before closing and discovered the discrepancy. Our agent has been very helpful and responsive. I don't get it, were the sellers trying to pull a fast one hoping no one would notice? They used almost a full contract year's worth of points. We had already been planning our upcoming vacations based on the point balances in the contract. We put in an offer to be reimbursed to continue the transaction. We are pretty disappointed considering the amount of time invested in this whole process but we are prepared to walk away. Unfortunately, there isn't much on the market right now that suits what we want and need. If they don't accept our offer we will probably wait until early next year to try again. I don't have the emotional energy to start over right now.

Has anyone dealt with an issue like this and what was your outcome?

Did your contract have any provision about if any points are missing that the seller must reimburse the buyer? I think my resale contract had a price of like $30 per point for any points that were not available.

 

[Traveling on cc points]

Feel free to say, none of your business.
how many points did they use? How much are you asking for per point in compensation? I hope you are asking for a lot!! So sorry this happened to you.

 

[Sandisw]

That is very sad that they did this. Sounds like they had sellers remorse and figured they might as well use it up because they would owe commission anyway?

My resale contract required me to get $15/pt for missing points which is why the title company i used held funds until I knew I got what I paid for,

It is so frustrating that they would do this.

 

[poofyo101]

That is very sad that they did this. Sounds like they had sellers remorse and figured they might as well use it up because they would owe commission anyway?

My resale contract required me to get $15/pt for missing points which is why the title company i used held funds until I knew I got what I paid for,

It is so frustrating that they would do this.

I would not agree to 15 per point. I would ask for more. 20. Maybe 25. You want to use essentially my points, you need to pay the price.

 

[Sandisw]

I would not agree to 15 per point. I would ask for more. 20. Maybe 25. You want to use essentially my points, you need to pay the price.

That was what was written in my contract so that Is all I would have been entitled to get,

Who ever thinks it will happen though? I don’t know if all contracts have an amount, but I never really paid attention to it.

Honestly, if that many points went missing, I’d bail and wouldn’t buy from the seller.

 

[EE_Mom]

They used 142 points. There was no provision in the contract to be reimbursed for missing points. We are asking $19/point since that is the going rate to rent or transfer points, a year of dues, and split the closing cost. Doing the math it comes to about $30/per point for the points they used. We are firm on this. If they say no, we are out.

 

[poofyo101]

That was what was written in my contract so that Is all I would have been entitled to get,

Who ever thinks it will happen though? I don’t know if all contracts have an amount, but I never really paid attention to it.

Honestly, if that many points went missing, I’d bail and wouldn’t buy from the seller.

Most contracts I have signed always had them around 20 or higher

 

[poofyo101]

They used 142 points. There was no provision in the contract to be reimbursed for missing points. We are asking $19/point since that is the going rate to rent or transfer points, a year of dues, and split the closing cost. Doing the math it comes to about $30/per point for the points they used. We are firm on this. If they say no, we are out.

Thats the same approach I would take.

 

[Sandisw]

They used 142 points. There was no provision in the contract to be reimbursed for missing points. We are asking $19/point since that is the going rate to rent or transfer points, a year of dues, and split the closing cost. Doing the math it comes to about $30/per point for the points they used. We are firm on this. If they say no, we are out.

I am glad in this case it didn’t say what the reimbursement was because now you get to call the shots!

Keep us posted and good luck!

 

[Traveling on cc points]

They used 142 points. There was no provision in the contract to be reimbursed for missing points. We are asking $19/point since that is the going rate to rent or transfer points, a year of dues, and split the closing cost. Doing the math it comes to about $30/per point for the points they used. We are firm on this. If they say no, we are out.

Good for you!! I hope you get everything you asked for.

 

[EE_Mom]

At this point, the only reason we are attempting to salvage this with an offer is the amount of time that has gone into this. ROFR is done. The number of points and use year fits. They have our signed closing paperwork and money. It is a done deal if they accept. No more worry or waiting. It just makes me angry that they returned their closing paperwork without disclosing they used the points. It feels shady on the sellers' part. Our agent caught it and stopped the closing until this was sorted out.

 

[EYL]

The first time I made an offer (Poly also) and was accepted, it was for a fully loaded contract. It was sent to ROFR and DVC discovered a discrepancy with the points. Turns out that the seller made a reservation for 9 months later after he signed the contract. It was a small resale company, so I doubt that they went after them for the commission (their contracts were a mess, I was correcting the spelling). I kept looking and found a better deal from another resale company and snagged it right before the restrictions went into effect in January 2019.

My first offer wasted about 30 days of my time. But you know? I think I'm better off. I decided on a better UY, decided to get 50 more points than what I originally wanted, and seller paid for all AF's. It all worked out for the best and I couldn't be happier. So keep looking!!

 

[Ruttangel]

I’m sorry this happened to you and I think you have took the right action
A couple of points spring to mind:
1.Are you sure they took the trips or are they bookings they haven’t completed yet?

2.Does ROFR not need to restart, as this completely different contract now?
If seller pays some dues and closing that would make it more attractive for DVC to buy?

I hope it gets sorted, this is shocking behaviour by the sellers.

 

[Cupcake232]

At this point, the only reason we are attempting to salvage this with an offer is the amount of time that has gone into this. ROFR is done. The number of points and use year fits. They have our signed closing paperwork and money. It is a done deal if they accept. No more worry or waiting. It just makes me angry that they returned their closing paperwork without disclosing they used the points. It feels shady on the sellers' part. Our agent caught it and stopped the closing until this was sorted out.

Thank god for your agent!!! If that had gone through and not been caught, that would have made this situation that much worse!!! Im sorry this happened to you. I have never heard of this before.

 

[bobbiwoz]

I hope you get what you are asking.

 

[RoseGold]

Read your contract. My pending contract is at 25, the one I did before that was 20.

 

[Wedgeout]

Hope it all works out for you. Looked at my contract. It had $20 per point compensation.

 

[RoseGold]

Thank god for your agent!!! If that had gone through and not been caught, that would have made this situation that much worse!!!

There are stories here about it not getting caught -- that's why it's so important to check when they populate! They handle it with the compensation of the contract.

There are also stories here of the reverse -- free points!

 

[Hjs33]

They used 142 points. There was no provision in the contract to be reimbursed for missing points. We are asking $19/point since that is the going rate to rent or transfer points, a year of dues, and split the closing cost. Doing the math it comes to about $30/per point for the points they used. We are firm on this. If they say no, we are out.

I’m surprised this doesn’t have to go through ROFR again. Your essentially now buying the contract for about $30 less per point. Not that I don’t agree with you, I’m just surprised is all.

Is this a loophole around ROFR? You could offer a price just above where you know it will pass, but let seller take a last minute trip and settle up at a price way below where Disney would normally take it.