DVC Resale Contract Cannot close until November...process?

[Kelly T.]

Hello,
I have my eye on a DVC resale contract but there is a note on the listing that says the contract cannot close until November. Has anyone gone through this process before? Is there a deposit that you have to put down until you can close? Any insight would be great! Thanks!

 

[TexasChick123]

Hello,
I have my eye on a DVC resale contract but there is a note on the listing that says the contract cannot close until November. Has anyone gone through this process before? Is there a deposit that you have to put down until you can close? Any insight would be great! Thanks!

It means the owner has a reservation booked and cannot close until that date. Most people won’t buy a contract like that because it’s too far out. Unless it’s just an amazing deal, I’d look for one with a sooner closing date. Prices can fluctuate a lot between now and August. If you consider it takes 90 days to close on most resale contracts, then you’d start the process in August for a November closing.

I have a reservation for a friend on a contract I am going to sell in November. I cannot close until November after her vacation is over. I’ve chosen to wait to list it because it’s too far out.

 

[msjprincess]

Like the PP said I wouldn't do it unless it was an amazing deal. That's really far off. I did buy one contract where the owner had a vacation book. It didn't delay closing by much though, and I was going to be banking the points so it wasn't a big deal to me.


ETA
In my case I made the offer in the beginning of November. The contract said they couldn't close before 12/19 which was a Friday. It closed on Monday 12/22.

 

[Chrisizzle]

I am in that purchase position now. I made an offer in early March knowing the seller couldn’t close until April 29. That didn’t seem like a big deal since right-of-first-refusal would take 4 weeks.

(un)Fortunately for me, the ROFR was approved in only 10-days. So, I could have closed a month earlier if not for the sellers timelines.

One thing I will note is that (according to my real estate team), Disney wants the seller’s entire trip completely wrapped up before they will transfer. That means an additional two weeks past the seller’s date just in case there are any pending transactions or expenses. So, my April 29th date now becomes mid-May before closing will begin.

I have no regrets. It was the right number of points at the right price and I didn’t need the points immediately.

 

[Great3]

Yes, you probably will need to put a deposit, as it's going to be in the contract you will sign.

But you don't need to come up with the rest of the money until closing time. On the bright side, ROFR and estoppel will happen long before than. If it's your first DVC contract, I would just move on unless it's a super good deal. If you decide to go thru with it, if it gets taken via ROFR, you will know much sooner and can move on just like any other DVC resale contract. But if it passes ROFR, than you are stuck with the contract unless you are willing to lose your deposit.

Great3

 

[DebbieB]

How much would the deposit be in a case of delayed closing? When would the remainder be due?

 

[Sandisw]

Bought and sold contracts like this. You put the normal deposit down, and it goes through ROFR right away. Sold in April for delayed closing in August and bought in June with delayed closing in November

Then, approximately 30 days prior to close date...which will be the day they check out for the reservation...the papers are sent to be signed and you then send the rest of the payment,

 

[Sandisw]

How much would the deposit be in a case of delayed closing? When would the remainder be due?

Same deposit and money sent within a few weeks before closing.

 

[Lumpy1106]

^^ THIS
We did that with our contract when we bought in Jan to beat the restrictions. The contract closed in Aug. You will want to keep an eye on the use year so you don't end up not being able to bank any available points. Also, if you plan on using the points < 11 months, or especially < 7 months from the close date, you will want to re-think, or at least consider that in the negotiated price since that will affect your ability to book those points.

 

[DebbieB]

Same deposit and money sent within a few weeks before closing.

How much is the deposit typically?

 

[Sandisw]

How much is the deposit typically?

10%, IIRC

 

[DougEMG]

I would not bother cause the seller could walk away at any time and not go through with the sale leaving you on the hook for months.

 

[Matty B13]

I would not bother cause the seller could walk away at any time and not go through with the sale leaving you on the hook for months.

I second this, a lot can happen in that time frame, and buyer can just walk away at anytime even with a signed contract because it wouldn't be worth it to sue them over it.

 

[Sandisw]

I would not bother cause the seller could walk away at any time and not go through with the sale leaving you on the hook for months.

True, but if that extra 10 months gives the buyer time to be in a better position to buy and if they would hold off buying anyway, then delayed closings can be a good thing.

It’s why I did it. I wasn’t in any rush for the points, the contract was a great deal for what I wanted, and I didn’t need to take my money out of savings for 6 months so it was worth the risk.

 

[Future_WorldPhonencian]

Just to double check, even if the closing is months off, it still goes through ROFR immediately correct? Disney wont snatch it up closer to the closing date but instead only a month or so into the process? Having to wait a long time for a closing date just to have disney snatch it up after a long wait doesn't seem worthwhile. This doesn't seem to affect a property being taken does it?

 

[Sandisw]

Yes, it is sent immediately to ROFR and they decide on it within the typical 30 days. What is delayed is the actual closing so as a buyer, you will know in the same timeframe as everyone else if Disney is taking it, but get to wait until closer to the actual closing day to send in your money and pay.

All the contracts that I have done...two as a seller, and one as a buyer passed without any delay.

 

[Future_WorldPhonencian]

Yes, it is sent immediately to ROFR and they decide on it within the typical 30 days. What is delayed is the actual closing so as a buyer, you will know in the same timeframe as everyone else if Disney is taking it, but get to wait until closer to the actual closing day to send in your money and pay.

All the contracts that I have done...two as a seller, and one as a buyer passed without any delay.

Thats really helpful to know, we are in the position where that sort of contract would be exactly what we are looking for... we don't plan on taking another trip for about 1.5-2 years and maybe could save some money in the process.

 

[hlhlaw07]

Yes, it is sent immediately to ROFR and they decide on it within the typical 30 days. What is delayed is the actual closing so as a buyer, you will know in the same timeframe as everyone else if Disney is taking it, but get to wait until closer to the actual closing day to send in your money and pay.

All the contracts that I have done...two as a seller, and one as a buyer passed without any delay.

Thats really helpful to know, we are in the position where that sort of contract would be exactly what we are looking for... we don't plan on taking another trip for about 1.5-2 years and maybe could save some money in the process.

Just to clarify, Disney does usually decide on ROFR within the same timeline, but they don’t have to. According to the rules you could be waiting a really long time to hear on a delayed closing as they have up to closing to decide. While they don’t usually do that, they could. So just keep that in mind.

 

[Sandisw]

Just to clarify, Disney does usually decide on ROFR within the same timeline, but they don’t have to. According to the rules you could be waiting a really long time to hear on a delayed closing as they have up to closing to decide. While they don’t usually do that, they could. So just keep that in mind.

But that is true with all contracts and most dates put on ones are at least 2 months into the future and I have not ever heard of Disney taking more than 30 days. So, yes, anything is possible, but I think highly unlikely.

 

[hlhlaw07]

But that is true with all contracts and most dates put on ones are at least 2 months into the future and I have not ever heard of Disney taking more than 30 days. So, yes, anything is possible, but I think highly unlikely.

The fact that you haven’t heard of it doesn’t mean it hasn’t happened. In fact last year there was a stretch where Disney was consistently going past the 30 days that it gave rise to the discussion these boards to start forcing the closing companies to put a closing date only 30 days out to force Disney’s hand. I had a contract taken last year after about 60 days. So it definitely happens.