Anyone made it through (or not made it through) ROFR recently? - Section I

[LauraLea]

Unfortunately this resale process is becoming not so magical for us.

Our first contract was the 80 pt VWL contract. We were expecting to be in the DVC system late this week, as we sent off our final payment almost 2 wks ago. Yesterday we found out that the seller has now decided not to return the final closing papers. There is absolutely no repercussions to the seller for doing this to us! So that ROFR process was for nothing! And we still are not DVC members.

Meanwhile we had started ROFR on another VWL contract, but it is stripped of points and will not give us what we need for our 2-br May 2006 trip without the 1st contract to supplement it. Now we are hoping Disney does buy it back! Then we will have to start the whole process over to get the VWL points that we so desperately want.

Hopefully things will improve. We are in the closing process for a 90 pt BWV contract and also have started the ROFR process on another BWV. I guess passing ROFR is not the only step in the process that determines whether you get your contract. We won't feel like any other contract is ours until it is actually in the DVC system.

Best of luck to all those waiting too............Laura

 

[Scratch42]

Oh Laura, so sorry to hear this. That is very discouraging. There should be some sort of reprocussions to the seller for backing out at this late stage of the whole process.



Good Luck with what it is you really would like to happen!

Scratch

 

[Oz-Ma]

Scratch- Congrats, will keep my fingers crossed for a quick ROFR process for you!

Laura- Sorry to hear about your troubles. That must have been frustrating to be so close! It sounds as if you have other good opportunities for DVC. Stay positive!!!!

Hoping for good news for all today!!

 

[disgirl]

Laura: how frustrating and dissapointing this must be for you! I am so sorry, but am hoping as Scratch said, that whatever works out best for you happens. Good Luck to you!

 

[JimMIA]

Unfortunately this resale process is becoming not so magical for us.

Our first contract was the 80 pt VWL contract. We were expecting to be in the DVC system late this week, as we sent off our final payment almost 2 wks ago. Yesterday we found out that the seller has now decided not to return the final closing papers. There is absolutely no repercussions to the seller for doing this to us! So that ROFR process was for nothing! And we still are not DVC members.

Meanwhile we had started ROFR on another VWL contract, but it is stripped of points and will not give us what we need for our 2-br May 2006 trip without the 1st contract to supplement it. Now we are hoping Disney does buy it back! Then we will have to start the whole process over to get the VWL points that we so desperately want.

Hopefully things will improve. We are in the closing process for a 90 pt BWV contract and also have started the ROFR process on another BWV. I guess passing ROFR is not the only step in the process that determines whether you get your contract. We won't feel like any other contract is ours until it is actually in the DVC system.

Best of luck to all those waiting too............Laura

A very similar thing happened to us with our first contract...and through the same broker. In our case, the seller reneged prior to us going through ROFR. It was quite clear to us that the listing was never made in good faith. To further undermine our confidence in the process, the same contract turned up in the same broker's inventory at a vastly inflated price less than a week after they backed out of our sale. We have serious doubts whether these listings are being presented in good faith.

In Laura's case, the flimsy excuses offered by her seller lead me to believe that contract was not offered in good faith either. And I'll be willing to bet that one ends back in the broker's inventory soon as well.

A couple of points on these types of transactions.

One, each party to any real estate contract has 10 days from the date they signed the contract to cancel under Florida Law. If Laura falls within that window, she can cancel her second contract and wait for a better one.

If the ten days have passed, I think the realtor should let her cancel anyway, if that is her wish. As far as we know, the seller of the second contract is legitimate, so the broker should do whatever they need to do to make any extraordinary cancellation right with that seller -- but they should not hold Laura to a secondary contract that was predicated on an unscrupulous listing which they presented and sold.

Two - the timeshare industry has a richly-deserved reputation for sleezy business practices, and regulators of the industry are quite active. I am going to post information about the two Florida agencies to contact with timeshare problems in a separate thread, so that it doesn't get lost in, or take away from, this ROFR thread.

 

[JimMIA]

Two - the timeshare industry has a richly-deserved reputation for sleezy business practices, and regulators of the industry are quite active. I am going to post information about the two Florida agencies to contact with timeshare problems in a separate thread, so that it doesn't get lost in, or take away from, this ROFR thread.

I'm going to post this over in the Disney Vacation Club forum, rather than this forum.

 

[iankh]

Is it the realtor's fault? I'm not sure. I would think that the listings are legitimate. The deposit money goes into escrow, doesn't it?

If I remember the initial purchase contract there is no penalty if the seller backs out. There is only a penalty if the buyer backs out.

It sounds like people have gotten greedy, seeing that they could get more money and back out, then relist.

While "not nice," there is nothing contracturally wrong with this. I must stress that I do not approve of the behavior, but there is nothing in the contract to prevent this behavior, so therefore, the seller is acting within their rights.

The answer is to have the language of the contract changed, so that there is a penalty for the seller for backing out of the contract, once they have signed it.

In all honesty, I would have not though ahead of time that people would behave like this.

I was very lucky regarding my seller. That was one of the reasons, my purchase went so smoothly. She was extremely prompt in returning all the paperwork, which shaved days/weeks off of the entire process.

(Though my seller never did change the drapes, as I had originally requested I'm being funny here)

 

[JimMIA]

Is it the realtor's fault? I'm not sure. I would think that the listings are legitimate.

I thought so too, but in recent weeks we have heard of at least two which weren't. Two is hardly a trend, but it is also just the tip of the iceberg. There are probably a lot more out there we don't know about.

My big issue with the listings is not the original listing. It's the relisting after the seller has already reneged on a contract. I'm not a realtor, so I'm not an expert in their ethical standards, but I sure don't run my business that way.

If I remember the initial purchase contract there is no penalty if the seller backs out. There is only a penalty if the buyer backs out.

It sounds like people have gotten greedy, seeing that they could get more money and back out, then relist.

While "not nice," there is nothing contracturally wrong with this. I must stress that I do not approve of the behavior, but there is nothing in the contract to prevent this behavior, so therefore, the seller is acting within their rights.

Of course there is something contractually wrong with this! This is the very definition of breach of contract! This is exactly the reason we have contracts in the first place - so that both parties understand their obligations and agree to uphold them.

The problem, as you correctly pointed out, is that there are no consequences to the seller for being unethical. Sure, you could sue them for specific performance and try to force them into going through with the contract, but that's not a financially viable alternative in a $20,000 transaction, so there are basically no consequences.

If I ever do another resale (which will be a very cold day in Hell), I will amend the contract to require that the seller match my deposit, and that the monies be held in escrow until closing. If the closing occurs, the seller gets their deposit back, along with the proceeds of the sale. If either party backs out, the injured party gets the other's deposit.

In all honesty, I would have not though ahead of time that people would behave like this.

I wouldn't either, but that's the price we pay for being honest.

 

[Beca]

LauraLea...I am SOOOO sorry to hear about this!!! I agree with JimMIA that people are just "getting greedy". But, I have another suggestion for you....why not close on the VWL contract, and then add-on via DVC? I really don't think the waitlists for VWL are too long. Then, you could get the number of points you want, and still get to go on your May 06 trip. And, if you time the add-on right (after you close, but when you are not in the system) they might even get you into the system faster (it worked for iankh). Just a thought....talk to your guide....you might be able to "make lemons into lemonade".

iankh....you are TOO cute!! I thought I was pretty lucky in my buyer, too!!!

Beca

 

[Beca]

LauraLea...I hate to ask you this.....but, was your contract with 120 points on an 80 pt contract? If so...it is back up at TTS for $82 per point. I really hope that is not it.

Edit: I just saw that it is NOT yours (different UY). LauraLea...it is a GOOD contract with a UY closer to the Dec that is currently going thru ROFR. You really might want to take a look at this one.



Beca

 

[ColoradoBelle1]

Hi LauraLea,
I'm really sorry.
I think you should pursue suing for specific performance on that contract.
There might be a way to do it so that all you need to pay is filing fees...and without a lawyer.

Certainly it wouldn't hurt if you wrote a letter to the listing broker of an intent to file for specific performance. If I remember correctly, in Florida, the brokers are both buyer/seller transaction brokers. Thus they have a fiduciary duty to you too. Perhaps a letter of intent to file might cause some budging on their part...either pressuring the seller OR realizing that they have lost your confidence AND that they might be on the paying end of a law suit.

Good luck!

 

[jnrrt]

If I remember correctly, in Florida, the brokers are both buyer/seller transaction brokers. Thus they have a fiduciary duty to you too.

Yes, we had to sign a paper stating that we understood that the agent represented us both - the agent is not allowed to work in the best interest of either of you at the expense of the other. Their role is supposed to be more of a facilitator as opposed to a real estate agent who is working specifically for the buyer or seller.

 

[JimMIA]

Hi LauraLea,
I'm really sorry.
I think you should pursue suing for specific performance on that contract.
There might be a way to do it so that all you need to pay is filing fees...and without a lawyer.

Certainly it wouldn't hurt if you wrote a letter to the listing broker of an intent to file for specific performance. If I remember correctly, in Florida, the brokers are both buyer/seller transaction brokers. Thus they have a fiduciary duty to you too. Perhaps a letter of intent to file might cause some budging on their part...either pressuring the seller OR realizing that they have lost your confidence AND that they might be on the paying end of a law suit.

Good luck!

In both Laura's and JoeEpcotRocks' situations (assuming they are two separate identical situations, which I think they are), suing the seller is probably not an option. The seller(s) are in the UK, and probably out of the reach of Florida courts.

 

[LauraLea]

Thanks everyone for your suggestions. I just pm'd JoeEpcotRocks to compare the seller's names. Both contracts have the same use year, so I am thinking maybe it is just one bad apple here.

Right now we will just wait to see what happens with ROFR on the 150 pt VWL contract. If that would happen to get waived, we will probably just buy additional points from Disney. If not, I guess we will have go thru ROFR again.

By the looks of the current asking price of most of the contracts on TTS, our $70/pt contract probably has no chance getting thru ROFR.

Why all of sudden do the contracts have such high asking prices? Considering all the headaches of the resale process, I would just as soon buy direct from Disney than pay $82/pt for a resale.

Laura

 

[AnnMorin]

IIf I ever do another resale (which will be a very cold day in Hell), I will amend the contract to require that the seller match my deposit, and that the monies be held in escrow until closing. If the closing occurs, the seller gets their deposit back, along with the proceeds of the sale. If either party backs out, the injured party gets the other's deposit..

Well I can tell you for one not all sellers are greedy or dishonest. I sold my points at an incredibly low price and was glad to do so. I only hope the buyers can pass ROFR, but they knew going into this that the offer was very low. They did not raise it and wanted to "roll the dice" I needed to pay off my bills so I gladly accepted it. As for the matching deposit comment. Sorry to be blunt but that is ridiculous. I sold my points at a very large loss to myself because I needed the money to pay bills. If a buyer asked ME to match their deposit I would tell them to take a hike. If I had the money I would not be selling in the first place! I would be shocked if anyone would accept terms like that.
I do think it is very unfortunate that some sellers are unethical but many more buyers back out on sales than sellers, hense the whole escrow thing. I can't tell you the amount of times I have sold something on ebay only to have the winner never pay up.
At any rate I hope everything works out for the people that were wronged... back to your regularly scheduled ROFR thread.....

 

[bobbiwoz]

Yeah for Beca!

Bobbi

PS. We've been away on a wonderful spring break cruise, but I had to go back to this thread to see how you did, I'm soooo happy for you!

 

[Beca]

Yeah for Beca!

Bobbi

PS. We've been away on a wonderful spring break cruise, but I had to go back to this thread to see how you did, I'm soooo happy for you!

Bobbiwoz...

THANKS!!! Our waitlist via DVC for BCV points also came thru!!! It has been a really good week!!!



Beca

 

[imsorry]

We just got 150 points at the Beach Club Villas - we waited 26 days!!

PS: We went thru Disney rep we met at SSR - $89/point. February '05 use year - we have all the points available for this year.

 

[depilot]

THIS REALLY WORRIES ME. Just submitted for ROFR BVC yesterday 240 pts FEB use year. I guess that contract is kissed goodbye.

 

[Scratch42]

THIS REALLY WORRIES ME. Just submitted for ROFR BVC yesterday 240 pts FEB use year. I guess that contract is kissed goodbye.

If you only submitted yesterday, you still have hope!

Trust me they aren't that fast!LOL



Scratch