Timeline for Seller Payment

[DonMacGregor]

I just received the following email from my broker:

Congratulations, your deed has gone to the county for recording, once it is recorded it will be sent to Disney within 24-48 hours of being recorded.

As we all know Disney is running behind, they are taking 2-8 weeks to transfer to the new owner. PLEASE let both myself and the title company when the property is no longer on your dashboard, we will then start following up with the buyer.

Once the transfer is 100% complete the title company will release your funds. They cannot release the funds until the transfer is complete on both ends.

Has anyone else had to wait to receive funds (as the seller) until after the points have been exchanged? My impression was that most received their funds within several days of closing (depending on a few variables). Thoughts?

 

[Jgc014]

I just received the following email from my broker:


Has anyone else had to wait to receive funds (as the seller) until after the points have been exchanged? My impression was that most received their funds within several days of closing (depending on a few variables). Thoughts?

I just sold a contract using DVC Title and Escrow, and I believe we had our funds wired to us the same day as closing. We definitely received our funds prior to the resort being removed from our DVC dashboard.

 

[Sandisw]

I just received the following email from my broker:


Has anyone else had to wait to receive funds (as the seller) until after the points have been exchanged? My impression was that most received their funds within several days of closing (depending on a few variables). Thoughts?

I was not the seller, but the buyer in 2020 and my sellers did indeed have to wait until I confirmed it was gone.

They had to wait 5 weeks. However, I also sold at the same time and that title company sent funds two weeks later before the contract left

So, it could be title company dependent.

 

[sndral]

The fact that DVC takes so long to actually transfer ownership after title has been recorded has always troubled me, AFAIK DVC doesn’t even freeze the contract while they do whatever they do to transfer, the points just seem to sit in the seller’s account, I wonder if the seller could transfer points they no longer own out while the buyer waits for DVC MA to do their job. The fact that a title company doesn’t release funds until the buyer has exactly what they bargained for seems to me to be a good thing.
Fortunately 99.9% of these transactions go as expected, so some would say it’s unnecessary to be so cautious, and cynics might think the title company gains a tiny bit of interest by holding on to the funds an extra couple of weeks .

 

[DonMacGregor]

Broker response (I asked if it was a new policy):

Yes it is. Since Covid Disney will not put a hold on the account when we notify them that a property has transferred. Only way to make sure that the buyer gets the points is that the title company holds the funds until they have the points in their account.

I currently have a contract that closed. The buyer had a wait list. The waitlist came through and there were 167 points that did not get transferred to the buyer. Therefore the title company is keeping $20 per point that is missing and giving that money to the buyer .

 

[Robbie Cottam]

What title company holds onto the cash, and what company pays at closing….