What is an Estoppel "Letter"

[Lindsay's4littles]

I just spoke with my DVC agent regardling where we are in the closing process. We received closing documents last Wednesday, overnighted them Thursday, and they arrived to our title company Friday morning, 9/29

The agent asked me if I had received an estoppel letter? I have not?

What is an estoppel letter? All I know anoot estoppel was it was the next thing after passing ROFR and before closing documents were sent? Those 2 things are long done?!

 

[disneynutz]

Estoppel is where DVC provides verification of the contract, owner, dues and point status. It was free in the past but now Disney charges for it. When we last bought which was a few years ago the letter went to the broker prior to the contract being written I think. Now it appears that things are different.

Bill

 

[Lindsay's4littles]

Estoppel is where DVC provides verification of the contract, owner, dues and point status. It was free in the past but now Disney charges for it. When we last bought which was a few years ago the letter went to the broker prior to the contract being written I think. Now it appears that things are different.

Bill

So the fact he asked me if I have received an estoppel letter is so confusing being where I am in the process. Obsessively estoppel has already been issued and cleared because I have received and sent back closing docs and payment over a week ago? I am beginning to think it was a waste of time contacting my agent

 

[minorthr]

We didnt get a letter that goes to the title company i assume.

 

[Lindsay's4littles]

We didnt get a letter that goes to the title company i assume.

That's what I was thinking happened all along. I didn't think I had anything to do with the estoppel. That was all handled by the title company. Goodness I might lose my mind during this process

 

[gillep]

That's what I was thinking happened all along. I didn't think I had anything to do with the estoppel. That was all handled by the title company. Goodness I might lose my mind during this process

We closed on our resale contract this summer and the Estoppel letter did not go directly to us, it went directly to the title company. In the compliance letter that our title company sent to us with our closing documents it specifically states that the title company 'has given due diligence in...collecting estoppel information'.

 

[Cyberc1978]

Estoppel is where DVC provides verification of the contract, owner, dues and point status. It was free in the past but now Disney charges for it. When we last bought which was a few years ago the letter went to the broker prior to the contract being written I think. Now it appears that things are different.

Bill

My title company requested the estoppel prior to the contract going to ROFR. Seems some are doing it after.

 

[Nurse4kids]

My title company requested the estoppel prior to the contract going to ROFR. Seems some are doing it after.

Good to know! Mine was sent in at the same time as when it was sent in for ROFR. I didn’t know that was possible. Today I received notice that it passed ROFR yesterday, I checked their website and they have the estoppel today and are working on the closing paperwork.

 

[Bing Showei]

My title company requested the estoppel prior to the contract going to ROFR. Seems some are doing it after.

I'm surprised the company would send for estoppel prior to getting a contract in place. Given how long a contract can sit on the market, and how long the resale process is, it only makes sense to get point verification from Disney immediately prior to drafting up closing documents. Some companies even put in that any discrepancy between points stated and present at closing would incur an $18/pt credit to the buyer. With Disney charging for estoppel, I don't imagine a lot of brokers are confirming points in accounts outside of screenshots.

Edit: "not" inserted between "brokers are" and "confirming points" made no sense in the point I was "trying to make" so I "removed it" for "clarity." "Fin."

 

[frabjous]

That's what I was thinking happened all along. I didn't think I had anything to do with the estoppel. That was all handled by the title company. Goodness I might lose my mind during this process

Right that’s exactly how it works. The whole point of estoppel is so the title company can do its job, which is to verify the ownership of the timeshare as understood by both parties is legitimate, before it obtains title insurance. You cant have closing documents until that portion is done, as they need to reflect the proper amounts.

 

[dfan_welcomehomeall_19]

Is there a way to search online (like you can for deed/mortgage info on OC comptroller website) for estoppel?