Backing out of a DVC Resale

[mlayton14]

DVC is a business transaction , back out without hesitation if the math makes sense for you

 

[ELMC]

DVC is a business transaction , back out without hesitation if the math makes sense for you

Remind me not to do business with you.

DVC is a signed contract. Honoring agreements, especially ones formalized in writing, is good business. Breaking your word because it suits you is not.

 

[mlayton14]

Remind me not to do business with you.

DVC is a signed contract. Honoring agreements, especially ones formalized in writing, is good business. Breaking your word because it suits you is not.

No hard feelings, if there are provisions in the contract to back out with or without penalty , then you ARE honoring the contract that’s my only point

 

[ELMC]

No hard feelings, if there are provisions in the contract to back out with or without penalty , then you ARE honoring the contract that’s my only point

Hmmmm...interesting interpretation. I suppose that's a fair way to look at it. Pay the price and get out.

 

[Great3]

Hmmmm...interesting interpretation. I suppose that's a fair way to look at it. Pay the price and get out.

Even after you pay the price, there's still the duty of performance of contract, you can be sued for failed performance, which in reality never happens. People just move on, and take the penalty as enough compensation.

Great3

 

[E2ME2]

Just a "for instance" scenario, with fictitious numbers to keep math easier -
If a seller committed to 200 Points at $100/PP, and paid a $2000 deposit.
If he/she backs out after ROFR, and forfeits the deposit, they have sacrificed $10/PP for ZERO in return
& IF there are additional costs/penalties/fees for backing out, including commission to the broker??
If those fees are another $1000, the buyer is out $15/PP, if those reach $2000 the buyer is out $20/PP
SO - for the buyer to recoup that loss on another contract for same number of points, the price would have to drop from $100/PP to $80/PP
just to get back to where they were. Does anyone think there will be such a dramatic drop in resale prices (-20%) ??
Assume that the resale price did drop by 20%, that same buyer would then have to find the same size contract/use year/ etc. just to get back to square one.

 

[Sandisw]

Just a "for instance" scenario, with fictitious numbers to keep math easier -
If a seller committed to 200 Points at $100/PP, and paid a $2000 deposit.
If he/she backs out after ROFR, and forfeits the deposit, they have sacrificed $10/PP for ZERO in return
& IF there are additional costs/penalties/fees for backing out, including commission to the broker??
If those fees are another $1000, the buyer is out $15/PP, if those reach $2000 the buyer is out $20/PP
SO - for the buyer to recoup that loss on another contract for same number of points, the price would have to drop from $100/PP to $80/PP
just to get back to where they were. Does anyone think there will be such a dramatic drop in resale prices (-20%) ??
Assume that the resale price did drop by 20%, that same buyer would then have to find the same size contract/use year/ etc. just to get back to square one.

I don’t think it will drop that fast,,,I hope not as a current seller,,,lol

But, sometimes, cutting your losses, even though it sucks for the seller who may have had their own financial needs, is better than saddling yourself with a debt...MFs...that can’t be carried,

 

[poofyo101]

Just a "for instance" scenario, with fictitious numbers to keep math easier -
If a seller committed to 200 Points at $100/PP, and paid a $2000 deposit.
If he/she backs out after ROFR, and forfeits the deposit, they have sacrificed $10/PP for ZERO in return
& IF there are additional costs/penalties/fees for backing out, including commission to the broker??
If those fees are another $1000, the buyer is out $15/PP, if those reach $2000 the buyer is out $20/PP
SO - for the buyer to recoup that loss on another contract for same number of points, the price would have to drop from $100/PP to $80/PP
just to get back to where they were. Does anyone think there will be such a dramatic drop in resale prices (-20%) ??
Assume that the resale price did drop by 20%, that same buyer would then have to find the same size contract/use year/ etc. just to get back to square one.

20% is highly likely IMO.
Also think it would be hard to brokers to enforce paying additional commission to them as they backed out because of money in most cases now, would be hard to get more money from someone backing out because of money.

 

[Cyberc1978]

The market will take a hit one way or another. It all depends on the length of the covid-19 and in which state economically we are in afterwards.

The worse everything gets the more it will fall.

IF we see a downwards trend I think it will go down fast in the beginning and then the prices will reach a plateau and stay for a while and depending on the economy they will either stay or continue down with several plateaus going down.

More or less similar to the stock market.

 

[Cyberc1978]

Don’t know if this applies to everyone but it seems that you can apply to get a year long break from paying mortgages.

Maybe that could postpone any downward trend for the pricing as people have ample time to sell their contract.

https://www.npr.org/2020/03/19/8183...irus-may-get-a-mortgage-break?t=1584799044711

 

[LoveMugsNPins]

4. If BUYER fails to make any payment or perform any of his obligations hereunder, SELLER has the option of terminating this contract and BUYER shall forfeit the deposit. The Escrow Agent shall deduct from the deposit all expenses incurred, if any, for escrow fees, administrative fees and title exam fees, said amount not to exceed $150, and the Escrow Agent is authorized by the BUYER to pay one-half of the deposit to the Broker and one-half to SELLER, except that the Broker's portion shall not exceed the full commission. If SELLER defaults on this contract, then the full commission is due the Broker by the SELLER and the SELLER shall pay the Escrow Agent for incurred costs, not to exceed $150 and the BUYER’S deposit will be returned to the BUYER. If either party fails or breaches any of the terms or conditions of this agreement, said party is hereby liable for any claims or cause of action arising out of this paragraph.


It seems like backing out will "only" cost me my deposit. I am sick to my stomach over this but I think I have to back out of my contract. submitted to ROFR on 2/28 passed on 3/19.

It is just a business transaction but is a very personal one. This will stick in my gut for the next 30 years I guess.

I worked so hard to save the cash to buy a DVC contract with no loans. I basically stopped buying all of the dumb things that eat up money, I am constantly having to talk my hubs out of eating out, etc. And I did it! I had a 160 pt AK contract for 103 a point. Paying cash. Now I am throwing away $1600 so I can have the money to eat and pay bills. I don't know, feeling VERY emotional right now

Edited to Add:
I get it. I am lucky that THIS is my big issue.

 

[Minniemoo15]

4. If BUYER fails to make any payment or perform any of his obligations hereunder, SELLER has the option of terminating this contract and BUYER shall forfeit the deposit. The Escrow Agent shall deduct from the deposit all expenses incurred, if any, for escrow fees, administrative fees and title exam fees, said amount not to exceed $150, and the Escrow Agent is authorized by the BUYER to pay one-half of the deposit to the Broker and one-half to SELLER, except that the Broker's portion shall not exceed the full commission. If SELLER defaults on this contract, then the full commission is due the Broker by the SELLER and the SELLER shall pay the Escrow Agent for incurred costs, not to exceed $150 and the BUYER’S deposit will be returned to the BUYER. If either party fails or breaches any of the terms or conditions of this agreement, said party is hereby liable for any claims or cause of action arising out of this paragraph.


It seems like backing out will "only" cost me my deposit. I am sick to my stomach over this but I think I have to back out of my contract. submitted to ROFR on 2/28 passed on 3/19.

It is just a business transaction but is a very personal one. This will stick in my gut for the next 30 years I guess.

I worked so hard to save the cash to buy a DVC contract with no loans. I basically stopped buying all of the dumb things that eat up money, I am constantly having to talk my hubs out of eating out, etc. And I did it! I had a 160 pt AK contract for 103 a point. Paying cash. Now I am throwing away $1600 so I can have the money to eat and pay bills. I don't know, feeling VERY emotional right now

Edited to Add:
I get it. I am lucky that THIS is my big issue.

That must have been a very difficult decision to make, but good on you for putting your family first. Hoping this all blows over relatively soon. DVC will be there again in the future when you are ready to purchase.

 

[Miffy]

I worked so hard to save the cash to buy a DVC contract with no loans. I basically stopped buying all of the dumb things that eat up money, I am constantly having to talk my hubs out of eating out, etc. And I did it! I had a 160 pt AK contract for 103 a point. Paying cash. Now I am throwing away $1600 so I can have the money to eat and pay bills. I don't know, feeling VERY emotional right now
Edited to Add:
I get it. I am lucky that THIS is my big issue.

@LoveMugsNPins--There's another way of thinking of this: that you're saving nearly $15,000 to give you and your family the financial security you all need at this point. In fact, if you hadn't saved to buy the DVC contract (and I'm very sorry you have to give it up--I know how upset you must be), you probably wouldn't have so much in savings, which you need right now.

 

[LoveMugsNPins]

I know. I also feel gross even being upset to cancel a DVC purchase.

 

[CarolMN]

I know. I also feel gross even being upset to cancel a DVC purchase.

We get it. Even though you know your problem pales in comparison to others, it's still disappointing and normal to feel sad.

 

[Sandisw]

I just had a buyer back out as well, We were only at the beginning stages as they had not even signed. But, they took the entire 10 days to decide whether to send papers back, so it leads me to believe they were wrestling with what to do,

For me, i lost out only on time and we don’t have to sell..,just want to so we can buy BLT points.

So, in these times, people need to make choices they may not have made in the past, While disappointing it’s back on market, I can only imagine how hard it was for them,

 

[LoveMugsNPins]

Thanks everyone! It was nice to hear BOTH sides of back out stories.

It is true, I am SO grateful that I did save the money. I am a saver by nature anyway but went really hard core at it when I got the goal of DVC!

I sent the email letting them know I won't be going through with the sale. Once whatever I have to do or sign, if anything, is done I think I will then be able to focus on the relief of having the savings.

How the heck did the world just implode?

 

[Punkrockbebop]

What about getting to ROFR but not having signed the final contract, yet? Do we still lose our deposit if we back out? I’ve been back and forth on it and don’t know what to do because both of us got laid off.

 

[poofyo101]

Its either 6 or 10 days after you make the deposit to back out usually without penalty.

 

[Punkrockbebop]

Oh boy, we might already be too late, then. We’ve gone through a lot this week. Laid off, then lost other business contracts. Brutal.