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-   -   Contract questions (http://www.disboards.com/showthread.php?t=3220979)

itutorfortravel 01-12-2014 08:15 PM

Contract questions
 
Looking over a contract for a dvc and wanted to ask...

-what is a "normal" financial penalty if a buyer backs out of a dvc contract? Not that I can imagine our doing this but I like to know all the what ifs and I'm trying to determine if what's outlined on this contract is typical.

-how long does it typically take to get closing docs after ROFR? Is a month or longer typical?

-any particular title companies to be wary of? If so who and why?

Thank you!

Deb & Bill 01-12-2014 08:22 PM

Quote:

Originally Posted by itutorfortravel (Post 50462127)
Looking over a contract for a dvc and wanted to ask...

-what is a "normal" financial penalty if a buyer backs out of a dvc contract? Not that I can imagine our doing this but I like to know all the what ifs and I'm trying to determine if what's outlined on this contract is typical.

-how long does it typically take to get closing docs after ROFR? Is a month or longer typical?

-any particular title companies to be wary of? If so who and why?

Thank you!

If you back out of a resale contract after ROFR (or more than ten days after you sign), you lose your deposit.

Figure about 60-75 days from getting your offer accepted to closing.

itutorfortravel 01-12-2014 08:33 PM

Quote:

Originally Posted by Deb & Bill (Post 50462207)
If you back out of a resale contract after ROFR (or more than ten days after you sign), you lose your deposit.

Figure about 60-75 days from getting your offer accepted to closing.

We haven't signed anything yet so nothing has really happened. But we've just now seen the contract and all the terms therein.

Should I be concerned if the financial penalty for canceling is not only my deposit but also an additional amount equal to three times my deposit payable to broker?

Also, do most contracts have an estimated closing date? Mine doesn't.

lovin'fl 01-12-2014 08:45 PM

Mine (and we've bought 5) have all had an estimated closing date. After you pass ROFR, you should get closing docs in 1-2 weeks and then closing happens and Disney transfers ownership (which they take about 2 weeks now). So, ROFR is about 1 month and then everything after is another month-ish. I also have only ever heard of losing deposit if you back out. Sounds like you might be using a company that has had some negative reports on these message boards...you should do a search on these boards.

Deb & Bill 01-12-2014 10:00 PM

Quote:

Originally Posted by itutorfortravel (Post 50462317)
We haven't signed anything yet so nothing has really happened. But we've just now seen the contract and all the terms therein.

Should I be concerned if the financial penalty for canceling is not only my deposit but also an additional amount equal to three times my deposit payable to broker?

Also, do most contracts have an estimated closing date? Mine doesn't.

I have had one single contract that I had for sale in the past. The first buyer backed out after Disney passed on ROFR and I got half their deposit. It went back on the market. The second buyer also backed out after Disney passed on ROFR and I got half of their deposit. Then we took if off the market and kept it.

The agent I used got the other half of the deposit both times for their trouble. But there wasn't anything about three times the deposit in that contract. It might just be the agent the seller is using. Tell them you want that changed before you sign it in case you decide to back out. If they decline, tell them thank you but no thanks.

Dean 01-13-2014 04:48 AM

Quote:

Originally Posted by itutorfortravel (Post 50462127)
Looking over a contract for a dvc and wanted to ask...

-what is a "normal" financial penalty if a buyer backs out of a dvc contract? Not that I can imagine our doing this but I like to know all the what ifs and I'm trying to determine if what's outlined on this contract is typical.

-how long does it typically take to get closing docs after ROFR? Is a month or longer typical?

-any particular title companies to be wary of? If so who and why?

Thank you!

You have up until 10 days to back out from the date of the contract without penalty after that your deposit is what's at risk realistically because it's very unlikely anyone would sue you in that situation but they could. However, the fact you're asking about his makes me nervous. Don't proceed unless you're sure of your decision and secure enough financially that you have essentially no risk. Insist on a closing date, I'd make it as close to 30 days as possible from the date sent for ROFR, maybe 45-60 days from signing date. There are also other brokers, I doubt the penalty stated is standard across all of them.

itutorfortravel 01-13-2014 05:23 AM

Thanks everyone...

I'm not nervous over our financial ability to purchase this, though I can see why it may have sounded that way.

I know the company we are using is one people complain takes forever to complete the process. That along with no closing date on the contract plus the hefty penalty if we back out is what's making me nervous.

There are a lot of points that are use or lose this summer. I don't want to lose them because this process drags on and on...I also don't really want to walk away from the deal because it's a really good one.

So I don't know...


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