Advise request - last minute resale cancelation

[md8287]

I have bought and sold several timeshares and for the first time someone is asking to cancel at the 11th hour. Signed agreement and resort assignment signed on seller (me) side.

The contract says I can keep their money if they back out but I don't think that is fair (+/- $6,000). They have given me no justification at this point and it sounds like they are just changing their mind or found a slightly better deal.

I am trying to talk to them but could sure use insight from more experience resellers and buyers of resale.

Thanks for any insight.

 

[DeniseM]

Where is their money at this point? Are you using a title company and/or escrow?

 

[md8287]

Where is their money at this point? Are you using a title company and/or escrow?

Money is in escrow with closing company. I know I could get it all but that does not seem fair, although last minute post signing isn't fair either. I also have already committed to something else based on the money. Ugh

 

[DeniseM]

Have you talked to the closing company about this - will they back you up?

 

[md8287]

Yes and yes.
Haven't talked to buyer yet and the longer they delay the more frustrated I get with the whole thing.

 

[DeniseM]

So you have only been dealing with them through the title company? Did the title company tell them it was too late to back out?

 

[md8287]

They sent an email to closing company asking what cost would be to back out. Closing company and I sent note to buyer without a response.

 

[DeniseM]

Has the buyer signed all necessary documents to proceed?

 

[md8287]

All but the very final assignment document from the resort. Their email earlier than the email I'm referencing said they were all set but would get to notary on Monday given schedule.

 

[DeniseM]

So here is the issue - you have their money, but if they refuse to complete the final step, how will you transfer the deed to them?

 

[md8287]

I can't but if they won't fulfill the contract they forfeit money to me unless we agree to something else.

If they are planning to do this because they found a better deal then they will go through with the purchase if basically they lose the money either way.

If the issue is they just no longer want a timeshare or this timeshare then they can get out of it by just forfeiting the money I guess.

Either way I make out on the deal and as I think this through with you my only move is to enforce the contract and keep the money, as if I do less then that I lose. It just not the outcome I want but it may be the only way I can get the outcome I want.

 

[DeniseM]

I agree - and remember, this isn't an issue of "fair or not fair" - this is business, not charity, and you have a contract.

 

[theo]

I can't but if they won't fulfill the contract they forfeit money to me unless we agree to something else.

If they are planning to do this because they found a better deal then they will go through with the purchase if basically they lose the money either way.

If the issue is they just no longer want a timeshare or this timeshare then they can get out of it by just forfeiting the money I guess.

Either way I make out on the deal and as I think this through with you my only move is to enforce the contract and keep the money, as if I do less then that I lose. It just not the outcome I want but it may be the only way I can get the outcome I want.

I have no dog in this fight and no position to espouse, but do you feel that could you be "made whole" by retaining some portion (of your determination) of the money in escrow and voluntarily agreeing to the release of some portion back to the retreating buyers? Certainly not a recommendation, just a question.

On the other hand, if the retreating buyers choose to maintain their current radio silence without further communication or explanation, keep all of the money; that might very well encourage and motivate them to break their "radio silence" --- sooner or later, one way or another.

Not looking to muddy the waters here. The black and white position is obviously that "there is a contract which buyers freely executed but are now breaching; buyer monies in escrow will be forfeited in toto to the seller, per clearly stated {I am assuming that description to be true} terms of the executed contract".

 

[md8287]

Theo,
I think maybe but not if they don't talk with me soon.
My hope is they fulfil the deal but clearly I can't compromise with someone if they won't communicate with me about whatever issue/concern they have.

 

[Talent312]

What I would do...
-- If they simply walk away & disappear w/o explanation, simply pocket the $$.
-- If they concoct a silly or self-serving excuse, but you feel charitable, let 'em have 1/3.
-- If they had an unforeseen change in circumstances which warrants charity, let 'em have 2/3.
Or thereabouts... But that's just me.

.

 

[md8287]

What I would do...
-- If they simply walk away & disappear w/o explanation, simply pocket the $$.
-- If they concoct a silly or self-serving excuse, but you feel charitable, let 'em have 1/3.
-- If they had an unforeseen change in circumstances which warrants charity, let 'em have 2/3.
Ot thereabouts... But that's just me.

.

Thanks -

 

[Beachspace]

I mean, they could also 'fight' it and make something up, thus creating a 'conflicting demands' to the escrow company and force it to go to court. At least that's how FL law works, not sure what state you are in.
Its never as easy as "ok, just give me the buyer's money, thanks title company", unless the buyer signed a release stating to give you the funds. If they fight it and don't sign the release, you have to go to court to get the money released to you. And that could be a few months. Then while you wait in the courtroom, the mediator comes and chats with you guys and does the all "Just give them some of the money back, you might get in front of the judge and get $0, etc etc". I've had that happen to me and clients of mine in escrow disputes.