When there is can close after date

[MommyinHonduras]

Not ready to buy but been looking at contracts and prices for a few months now. When current owner has one last trip on their points it lists can close after date. My question is can you do all the work, pass through Disney and then just not sign til after that date? Some list dates more than 6 months out.

 

[CraigInPA]

You can enter into an agreement of sale and pay a deposit, and can even go through ROFR. There it will stop. The next step is estoppel, which would trigger DVC to cancel any outstanding reservations made. To make sure this doesn't happen, the broker won't engage the title company until the "close after" date. Thus, you're not likely to close for a month after the "close after" date.

 

[aoconnor]

Yes, you can go through ROFR then wait to close. One benefit is I doubt Disney would buy a contract with an extended closing.

 

[MommyinHonduras]

Thank you both

 

[msjprincess]

Yes. I had that with the last contract I bought. The seller had a vacation booked so they couldn't close for a couple of months. It passed ROFR 10 days after it was sent for approval.

 

[Jason@dvcstore]

Not ready to buy but been looking at contracts and prices for a few months now. When current owner has one last trip on their points it lists can close after date. My question is can you do all the work, pass through Disney and then just not sign til after that date? Some list dates more than 6 months out.

Everything can be done prior to the “Can close” date. I currently have a file that was written originally as can’t close before 2/26/18. Everything is in from both buyer and seller and the closing company is set to close it on 2/27/18.

 

[MommyinHonduras]

Everything can be done prior to the “Can close” date. I currently have a file that was written originally as can’t close before 2/26/18. Everything is in from both buyer and seller and the closing company is set to close it on 2/27/18.

Thank you, that is great to know.

 

[JoanneDL]

Thats what we did in November. We will close on February 21st. We did all our closing documents and sent the final check in about 2 weeks ago.

 

[PatMcDuck]

There was one listed that looked ok to me, but closing not until mid October. It was listed in January. I think this is a bit nuts! I could see a few months, yes.

I moved on to another contract...

 

[msjprincess]

There was one listed that looked ok to me, but closing not until mid October. It was listed in January. I think this is a bit nuts! I could see a few months, yes.

I moved on to another contract...

Yeah, that's a but much. Mine was only a few months and I was planning on banking the points anyway so not a big deal.

 

[Matty B13]

There was one listed that looked ok to me, but closing not until mid October. It was listed in January. I think this is a bit nuts! I could see a few months, yes.

I moved on to another contract...

I wouldn't touch that contract, the points could be a mess after that long a time. The current owners could accidentally use the points without thinking and then it would have to go back through estoppel. I'm surprised the broker even listed it.

 

[sndral]

There was one listed that looked ok to me, but closing not until mid October. It was listed in January. I think this is a bit nuts! I could see a few months, yes.

I moved on to another contract...

I wouldn't touch that contract, the points could be a mess after that long a time. The current owners could accidentally use the points without thinking and then it would have to go back through estoppel. I'm surprised the broker even listed it.

Plus occasionally you’ll read about sellers reneging on those long cannot close before contracts, especially if the resale prices go up in the interim and although the seller and broker could sue, the cost of doing so makes it impractical. Personally, I’d only consider a cannot close contract before if the wait was short and it was priced below market - too much risk otherwise, IMO. Of course if the buyer wanted extra time to accumulate their funds for the purchase then the risk might be worth it.

 

[Merlin Jones]

I went through this last year. My offer was accepted in Feb for an HHI contract that couldn't close until October. I lowballed the offer and was somewhat surprised when they accepted. I actually had a case of buyer's remorse, as I didn't really "need' the points--I just liked the deal. But I stayed with it and we closed--by which time the resale market had risen nearly $15/pt (and has risen another $8/pt since).

On top of that, this purchase enabled me to buy a 25-pt diirect add-on contract at the cheapest resort in the collection. Today, I could sell my resale contract and clear more in profit than the add-on contract cost--essentially a free direct membership.

So it worked out well for me. But as others have noted, if prices continue to rise there may be temptation for sellers to back out.

 

[PatMcDuck]

We found an even better (for us) deal at Boulder Ridge. I feel like that one could fall apart by October. Anything could happen.

(I know I am prejudiced, but now that the construction is done at WL, I feel like it is a bargain resale property. (BR) It has so many restuarant/quick service options, 2 really nice pools (close together), the quick lovely boat rides to MK, the campgrounds, and Contemporary..... Obviously not a monorail resort, but it has so much to offer. I could see prices rising a bit)

 

[jimonb]

You can enter into an agreement of sale and pay a deposit, and can even go through ROFR. There it will stop. The next step is estoppel, which would trigger DVC to cancel any outstanding reservations made. To make sure this doesn't happen, the broker won't engage the title company until the "close after" date. Thus, you're not likely to close for a month after the "close after" date.

I am currently waiting on ROFR for a contract that has a “close after” date of 4/23/18. I have been told by my broker that it will go to estoppel as soon as it (hopefully) passes ROFR. Are they correct or will their misinformation cause the seller’s trip to be cancelled?

 

[CraigInPA]

Estoppel locks the use of the points, effectively cancelling the pending reservations. Perhaps the broker meant that it would go to the title company to start the paperwork. That could cut the delay between the "close after" date and the actual close date to a few days, in theory.

 

[Matty B13]

Estoppel locks the use of the points, effectively cancelling the pending reservations. Perhaps the broker meant that it would go to the title company to start the paperwork. That could cut the delay between the "close after" date and the actual close date to a few days, in theory.

Are you sure it locks the points? I thought someone last year had a problem with a seller who used points after the Estoppel was done, possibly after closing, and when DVD setup the contract for the new owner found the error and sent it back to the closing company and made a general mess of the whole thing.

 

[jimonb]

Still a little confused about the estoppel process with the close after date. Ours has the close after date of 4/23/18. I was informed today that we passed rofr, and would receive closing documents in 4 weeks, which would still be about a month before the close after date. Hmmm.