Negatives buying resale when owner is outside US

[Wakey]

As I said above, maybe depends on where the seller is from. There’s no reason to get a better deal from a British seller as they get the docs endorsed by a notary public. Maybe the same in other European Countries I am not sure. The only slight delay may come in posting back the contract but if it’s sent airmail/ Fedex it shouldn’t take much longer than sending it from one coast to another within the USA.

 

[kboo]

I have purchased 3 contracts resale, with two being from international sellers. While both international contracts took much longer than the domestic contract, the deals with the international sellers were better.

However, my last contract with an international seller is still pending even though Disney waived ROFR in October and I received/returned closing documents in November. This seller is from a South American country and required an appointment at the embassy to notarize the documents. That took quite some time. Now the seller has only returned some of the documents. It doesn’t help that the seller doesn’t speak English and apparently the ability to call them is limited, leaving the broker’s ability to communicate only through email. The contract was completely stripped until 2020, so I’m not in a rush and it was a really good deal price wise so I’m holding out hope that closing will eventually happen with a little patience. The only thing I have to lose by continuing to wait is the use of my money while its being held in escrow. If it wasn’t such a great deal (one that would not likely pass ROFR now) I would walk.

So, you will probably get a better deal with an international seller, and like @kboo stated I think Disney is more apt to waive with an international seller. Just don’t enter into the transaction without your patience!

Our last international seller had to pay money to close - they were underwater on both the loan and MFs - and so that took a while too, although that could have happened with a distressed US seller too.

Hope your contract closes soon too, @hlhlaw07 !

 

[lisaviolet]

The difference in notary rules is with a specific closing company. Hence the different stories of how easy it was to be notarized. One of my contracts was with this differing closing company and I still had it done quickly.

As a previous poster noted we are not given our proceeds until FIRPTA is taken off. So no huge concern there. If there is some closing company not doing this, that is nuts.

I have been laughing during this thread. I have sold two contracts and both times the American buyer was tremendously delayed during the process. So maybe I should have gotten a deal - insert wink and smile.

Quite honestly I think too much time is given to DVC resale buyers/sellers. The contract time, for signing/money transfer, should be lessened.

 

[KAT4DISNEY]

The difference in notary rules is with a specific closing company. Hence the different stories of how easy it was to be notarized. One of my contracts was with this differing closing company and I still had it done quickly.

As a previous poster noted we are not given our proceeds until FIRPTA is taken off. So no huge concern there. If there is some closing company not doing this, that is nuts.

I have been laughing during this thread. I have sold two contracts and both times the American buyer was tremendously delayed during the process. So maybe I should have gotten a deal - insert wink and smile.

Quite honestly I think too much time is given to DVC resale buyers/sellers. The contract time, for signing/money transfer, should be lessened.

Sold? What?!

 

[lisaviolet]

Sold? What?!

I still own. One I sold years ago to make a resort change.

This last one was sad as hell. Short story is when looking after my mom I had to sell my condo to rent a better unit for her (long story part) thinking I could just jump back in the market because I have never lived anywhere near max mortgage. Well guess what? The market changed by 120 000, for the same unit, in under two years.

---------

If I knew these DVC changes were coming I would have sold the one I still hold instead.

The worst part is points total. I had the perfect point total and I didn't even know it. Now I do.

It is like a puzzle just to figure things out. And makes stalking so much more difficult. Still on it though!

Oh well, life.

 

[quandrea]

With FIRPTA, does the Canadian seller ever see that 15%? Of the sale again? Or does the Canadian seller pay commission and the FIRPTA?

 

[KAT4DISNEY]

I still own. One I sold years ago to make a resort change.

This last one was sad as hell. Short story is when looking after my mom I had to sell my condo to rent a better unit for her (long story part) thinking I could just jump back in the market because I have never lived anywhere near max mortgage. Well guess what? The market changed by 120 000, for the same unit, in under two years.

---------

If I knew these DVC changes were coming I would have sold the one I still hold instead.

The worst part is points total. I had the perfect point total and I didn't even know it. Now I do.

It is like a puzzle just to figure things out. And makes stalking so much more difficult. Still on it though!

Oh well, life.

If only that hindsight came earlier! And what a crazy price increase on the condo! Taking care of mom is an excellent reason though. Life can take you on a crazy ride.

Glad you're still around with some DVC! (I didn't know there was a perfect point total - maybe there's hope after all. )

 

[Madame]

With FIRPTA, does the Canadian seller ever see that 15%? Of the sale again? Or does the Canadian seller pay commission and the FIRPTA?

You need to apply to the IRS to be reimbursed (minus any taxable $ gained I would assume).

 

[lisaviolet]

With FIRPTA, does the Canadian seller ever see that 15%? Of the sale again? Or does the Canadian seller pay commission and the FIRPTA?

You need to apply to the IRS to be reimbursed (minus any taxable $ gained I would assume).

Yes.

You pay FIRPTA first and then apply to get it back, minus the percentage on capital gain if applicable.

And have someone do it for you, if the time comes. It is well worth the small amount of money. Nancy Carpenter is a great contact to complete the process. It really isn't that complicated on your own but you can find yourself educating IRS employees, about ITIN and FIRPTA, just to get things done. Which is bizarre. That was a long time ago so hopefully things have improved. The second time I felt that using a tax specialist was totally worth not dealing with that part of the headache.

If only that hindsight came earlier! And what a crazy price increase on the condo! Taking care of mom is an excellent reason though. Life can take you on a crazy ride.

Glad you're still around with some DVC! (I didn't know there was a perfect point total - maybe there's hope after all. )

Well a perfect amount is totally an individual sport.

My perfect is other people's peanuts.

I had 278 points, 240 and now 150. I just can't believe how 90 less points has made booking decisions so incredibly frustrating.

For me, even if I was well off and it was nothing, I would never want to pay too much maintenance.

Both 278 and 240 worked well for me and the maintenance was negligible, even with our horrid exchange lately.

Thanks on the other Kathy. Appreciate it.