Waiting to find out about a sellers reservation AFTER closing! WHAAAT?

[Whositsgalore]

Okay, I'm hoping all of this a big misunderstanding but here goes. So I purchased my first contract (resale) and we closed on Friday 6/22/18, deed recorded 6/25/18. Our sellers have multiple contracts with DVC based on the comptrollers website. Now, I'm also trying to purchase a small direct contract but obviously need the membership number before we can move forward with that. My DVC guide called me yesterday, i'm assuming after he must have tried to get a membership number and told me that the sellers have a current reservation for next week and I wouldn't be able to get a membership number until after they completed their stay! WHAAAAAAAAT? I explained to him there must be some mistake and the sellers have multiple contracts but he explained that's all he was told.

I immediately contacted my broker, naturally I was disturbed that the sellers were able to use what is now MY contract. She said that's not possible and that Disney will not allow a title company to close on a contract with pending reservations. We would have either had to wait until the seller completed their reservation then close or the seller and / or Disney would have to cancel the reservation so we could close prior to reservation (which we did).

I have an email to my DVC guide explaining that and asked him to look into it again not necessarily for a membership number so I can continue my direct purchase but just to double check. Or asked him to give me the number to someone he spoke to so I could check.

This is all so strange, and I'm hoping there is a mix up somewhere but even if that's the case I want to fix it before it gets more bogged down.

Anyone have any thoughts, experience, knowledge of how this is handled etc....?

 

[Matty B13]

If you closed on your contract, then it is "YOUR" contract and points. I would ask to speak to a manager about the situation and also talk to your title company, not your broker, about the situation.

What might have happened since the owner has multiple contracts is that they booked a vacation with the same resort and UY contracts that they sold you part of that member number, so the system might not be able to handle this situation. But.... I would insist that DVC give you access to your contract.

 

[disneynutz]

Time to get a different guide.

Bill

 

[Whositsgalore]

Time to get a different guide.

Bill

That's my fear. He's been great up until now. I'm hoping he redeems himself this morning after reading my email. We shall see.

 

[Whositsgalore]

If you closed on your contract, then it is "YOUR" contract and points. I would ask to speak to a manager about the situation and also talk to your title company, not your broker, about the situation.

What might have happened since the owner has multiple contracts is that they booked a vacation with the same resort and UY contracts that they sold you part of that member number, so the system might not be able to handle this situation. But.... I would insist that DVC give you access to your contract.

That's exactly my thought and I was pretty hot about how they could possibly using what is now MY contract. I'm hoping there's just a slight mix up but surely my DVC guide and the people in admin can tell the difference between a contract and a membership number. I'm not buying the sellers membership number just this contract. If what they are saying is true then no seller holding multiple contracts would be able to sell one unless they sold them all and at the same time. It's all very strange and it seems wires are getting crossed somewhere.

 

[Whositsgalore]

Update: spoke to MS and they confirmed the reservation and said it would be a few WEEKS before I would get a membership number!!!!! I explained the sellers are using MY contract and that can’t be right, They told me the reservation was written into the contract I signed and to re-read the contract. I did! It’s not there. I have an email in to my broker and title company.

Seriously how is this even happening.

 

[bumbershoot]

This shouldn’t be happening, that’s for sure. What did MS say when you told them it’s not in your contract?

 

[Jason@dvcstore]

If you closed on your contract, then it is "YOUR" contract and points. I would ask to speak to a manager about the situation and also talk to your title company, not your broker, about the situation.

What might have happened since the owner has multiple contracts is that they booked a vacation with the same resort and UY contracts that they sold you part of that member number, so the system might not be able to handle this situation. But.... I would insist that DVC give you access to your contract.

I would recommend contacting the resale company you are dealing with for your transaction. They will be able to assist in my opinion better than the title company. If you are dealing with The Timeshare Store, Inc.® please get in touch with us ASAP. Thanks.

 

[Matty B13]

Update: spoke to MS and they confirmed the reservation and said it would be a few WEEKS before I would get a membership number!!!!! I explained the sellers are using MY contract and that can’t be right, They told me the reservation was written into the contract I signed and to re-read the contract. I did! It’s not there. I have an email in to my broker and title company.

Seriously how is this even happening.

Didn't think that Disney or the Title Companies would let you close until all reservations had been completed. That is why they have the contracts that say "Can't Close till XX/XX/2018".

 

[southerngirl528]

Time to get a different guide.

This is not necessarily true. Guides don't have access to memberships, they must depend on MS to give them correct information in such instances. And don't all we very longtime DVC members know that what a new CM in MS says may or may not be exactly right??

f you closed on your contract, then it is "YOUR" contract and points. I would ask to speak to a manager about the situation and also talk to your title company, not your broker, about the situation.

What might have happened since the owner has multiple contracts is that they booked a vacation with the same resort and UY contracts that they sold you part of that member number, so the system might not be able to handle this situation. But.... I would insist that DVC give you access to your contract.

I think it is good advice to call MS if your deed is indeed recorded, even if you do not have a Mem# yet. Tell them the situation and ask for a mgr if need be. They should be able to find you in the system and find out what is going on.

 

[southerngirl528]

They told me the reservation was written into the contract I signed and to re-read the contract. I did! It’s not there.

That is the first time I have heard of DVC allowing this, even if it is in the contract. I know Marriott will allow it IF it's in the contract.

As I mentioned earlier, this situation is out of your guide's scope of expertise, so please do not blame them in this scenario. (they could be at fault with something else, but not a contractual issue on your resale)

 

[Firebird060]

Hmm this is a interesting case, I hope it gets all sorted out But I am curious enough to know the outcome

 

[Whositsgalore]

Update #2: I spoke with my broker who apologized and said it was their fault. They said that they didn't "check a box" that should have been checked saying we couldn't close until after July 5th so we closed earlier than we should have. They also said they can't believe Disney didn't kick it back but they didn't. She said, the sellers are using 2017 points (which we did not buy so no issue there) and we only bought full 2018 points. The downfall is we have to wait a week longer than typical to get our membership number but I guess in reality we should have had to wait a week longer to close. It just feels strange that the seller is using our contract for a stay, even if it isn't our points.

Good news is my guide was right so I feel more comfortable going forward with him.

 

[southerngirl528]

Update #2: I spoke with my broker who apologized and said it was their fault. They said that they didn't "check a box" that should have been checked saying we couldn't close until after July 5th so we closed earlier than we should have. They also said they can't believe Disney didn't kick it back but they didn't. She said, the sellers are using 2017 points (which we did not buy so no issue there) and we only bought full 2018 points. The downfall is we have to wait a week longer than typical to get our membership number but I guess in reality we should have had to wait a week longer to close. It just feels strange that the seller is using our contract for a stay, even if it isn't our points.

Good news is my guide was right so I feel more comfortable going forward with him.

While not perhaps the best news for YOU, at least your broker was up front and owned their error. I still think it's so odd that DVD allowed this.... Glad you got it all sorted out, and at least it's just another week to wait! Welcome home!

 

[sndral]

The reality is next week isn't that far out - so it may not be worth fighting about. Can your guide sell you your direct points, create your member number and the gen have these points added once the seller uses a he 2017 points?
Nevertheless, if it were me I'd be ticked. Would you have offered on that contract if you knew you could not close until after the existing reservation was completed? Did the broker disclose to you that the contract could not close before a set date? It sounds to me like the broker failed in their fiduciary duty to disclose the existing reservation to you.
It's obvious that the documents the title company had made no reference to a cannot close before date, because they closed before that date.
I recall a similar situation a year or more ago & DVC just sat on it until the seller's points were used by the seller.
Personally I would try to speak to DVC's legal department (if such a department even exists) and make it clear that I had recorded title to the contract, and that I expressly was not agreeing to anyone's use of my ownership interest & that I objected to having my access to my points delayed.
I wonder how often this happens and the innocent buyer doesn't even know while DVC just delays giving them a member number.

 

[bumbershoot]

Didn't think that Disney or the Title Companies would let you close until all reservations had been completed.

Not for strangers, but if it's a family transfer they'll let you keep the reservations. So, different situation but IMO worth mentioning so family transfer people don't panic upon reading this (like I did a couple years back).

And don't all we very longtime DVC members know that what a new CM in MS says may or may not be exactly right??

True.

Though I'm not even sure what the guide could have done for the OP yet anyway, since they aren't quite yet full members.

That is the first time I have heard of DVC allowing this, even if it is in the contract. I know Marriott will allow it IF it's in the contract.

No, they allow it, but it's supposed to be in the contract that it wouldn't close until after the vacation.

They said that they didn't "check a box" that should have been checked saying we couldn't close until after July 5th so we closed earlier than we should have. They also said they can't believe Disney didn't kick it back but they didn't. She said, the sellers are using 2017 points (which we did not buy so no issue there) and we only bought full 2018 points.

But you should have known about this ahead of time.

(and that checking a box thing sounds like the way they allow family transfers to happen, which is interesting to me since I'm going through that right now)

Regardless of if Disney didn't kick it back, you should have known this ahead of time.

 

[Renee H]

Update: spoke to MS and they confirmed the reservation and said it would be a few WEEKS before I would get a membership number!!!!! I explained the sellers are using MY contract and that can’t be right, They told me the reservation was written into the contract I signed and to re-read the contract. I did! It’s not there. I have an email in to my broker and title company.

Seriously how is this even happening.

This is the craziest thing ever! Are all the points accounted for otherwise?

 

[ziravan]

Update #2: I spoke with my broker who apologized and said it was their fault. They said that they didn't "check a box" that should have been checked saying we couldn't close until after July 5th so we closed earlier than we should have. They also said they can't believe Disney didn't kick it back but they didn't. She said, the sellers are using 2017 points (which we did not buy so no issue there) and we only bought full 2018 points. The downfall is we have to wait a week longer than typical to get our membership number but I guess in reality we should have had to wait a week longer to close. It just feels strange that the seller is using our contract for a stay, even if it isn't our points.

Good news is my guide was right so I feel more comfortable going forward with him.

I’m sorry, if you closed, it’s your contract. Whatever error happened was not on you.

I would demand that the reservation be cancelled. I would not let someone take a trip on my points without my permission.

That might be harsh, but it’s on the title company to make this right with the seller; not you.

They are now trespassing on your real property.

I’d tell the broker, title company and DVC that if that reservation happens, I will consider it a theft of use of my real property and hold them responsible for their complicity.

They can’t just tell you AFTER you closed that they intended to hold the closing for a reservation. Oops, my bad! Umm, I really don’t think so. That’s up front full disclosure requirements. I would not just wink and nod at that.

This is a big problem, but it shouldn’t be YOUR problem.

 

[Whositsgalore]

This is not necessarily true. Guides don't have access to memberships, they must depend on MS to give them correct information in such instances. And don't all we very longtime DVC members know that what a new CM in MS says may or may not be exactly right??



I think it is good advice to call MS if your deed is indeed recorded, even if you do not have a Mem# yet. Tell them the situation and ask for a mgr if need be. They should be able to find you in the system and find out what is going on.

They did see me in the system but said that the reservation was on my signed contract so there was nothing they could do. It’s not on my contract and my broker did say they messed up. At this point I can only assume that’s why Disney hasn’t cancelled the reservation, because to them I signed a contract acknowledging the reservation (even though I didn’t). The only good news is they are using 2017 points which I didn’t purchase.

 

[Whositsgalore]

Can your guide sell you your direct points, create your member number and the gen have these points added once the seller uses a he 2017 points?

Not right now since the member direct price is cheaper than a brand new direct price. That’s why I need the number.

Personally I would try to speak to DVC's legal department (if such a department even exists) and make it clear that I had recorded title to the contract, and that I expressly was not agreeing to anyone's use of my ownership interest & that I objected to having my access to my points delayed.

MS says I signed a contract saying I was aware of the reservation which I didn’t and wasn’t. My broker admitted it was their mistake. But as far as DVC MS is concerned there’s nothing they can do. Good news is they are using 2017 points for the stay and I didn’t purchase those points.