Buyer's remorse

[GoodWitch]

I made a deposit on a timeshare after conducting a substantial amount of research. However, I now find that the prices for this resort are at an all time low (I think because of the bad economy). Now I am almost sick about the thought of having signed a contract for a price that is higher than the current market rate. I can can actually forfeit my deposit, buy another property in the same chain, and still save money.

Morally, I dislike backing out of a deal but think my deposit could be considered fair compensation to the seller for his trouble. But I wonder about the legal aspect. Because I signed a contract and mailed it back to the seller, could I be legally obligated to buy the property even though I have not paid the seller, and the deed has not been transferred to my name?

I definately sound like a newbie on this one. I appreciate all advice. Thank you.

 

[DeniseM]

Before you get burnt to a crisp, let me ask a few questions!

I believe that based on your previous posts, that this is a Starwood resale.

Was this an ebay purchase?

Is the deposit in escrow?

Did you buy from an individual or a resale company?

I'm really not flaming you, but I see you've only been a TUG member for 3 mos. - you probably just jumped in before you were really ready. I always recommend that people wait 6 mos. (Not that I did that! )

I'm not an attorney and I didn't stay at a Holiday Inn last night, but I believe the contract is binding.

If it is a resale company, I think they are going to put a LOT of pressure on you to complete the sale and may even turn you over to collections. If it's an individual seller, they probably won't have the resources to do much.

Good luck!

 

[JoeMid]

Because I signed a contract and mailed it back to the seller, could I be legally obligated to buy the property even though I have not paid the seller, and the deed has not been transferred to my name?

Was this an ebay purchase?
Is the deposit in escrow?
Did you buy from an individual or a resale company?
I'm not an attorney
If it is a resale company, I think they are going to put a LOT of pressure on you to complete the sale and may even turn you over to collections. If it's an individual seller, they probably won't have the resources to do much.

Only you can decide, you signed the contract.

 

[Talent312]

Whether or not you could or should breach a contract depends. It depends on whether or not you are willing to risk the possible adverse consequences, whether its the loss of a deposit, a lawsuit, or more. If you are willing to take that risk, go ahead... contracts are breached all the time.

Usually, the potential adverse consequences for a breach are spelled out in the contract itself in a "default" clause. Otherwise, damages are generally measured by economic loss (offset by efforts to mitigate).

A marriage counsellor once asked me if she could open a practice in violation of a non-compete clause in her employment contract. I said, "Of course you can. But if they find out that you did this, they could sue you for... Only you can decide if that a risk you are willing to take."

 

[GoodWitch]

Before you get burnt to a crisp, let me ask a few questions!

I believe that based on your previous posts, that this is a Starwood resale.

Was this an ebay purchase?

Is the deposit in escrow?

Did you buy from an individual or a resale company?

I'm really not flaming you, but I see you've only been a TUG member for 3 mos. - you probably just jumped in before you were really ready. I always recommend that people wait 6 mos. (Not that I did that! )

I'm not an attorney and I didn't stay at a Holiday Inn last night, but I believe the contract is binding.

If it is a resale company, I think they are going to put a LOT of pressure on you to complete the sale and may even turn you over to collections. If it's an individual seller, they probably won't have the resources to do much.

Good luck!

Yes it is an ebay purchase. I didn't put the deposit in escrow. But I am planning on putting the balance of the purchase in escrow.

Looks like I have to go through with the deal. Even though I didn't get a bad price. It kills me that I may have saved a couple thousand if I only waited.

 

[tashamen]

Even though I didn't get a bad price. It kills me that I may have saved a couple thousand if I only waited.

Just forget about that and don't stress out over it - enjoy your new purchase and learn a lesson for the next one - and there will likely be a next time...

 

[mgeez]

If it were me, I would push the issue by not continuing with the transaction and see what pressure is put on you. Collection agencies would be the least of my worries as they really have no power to collect. The only thing a collection agency can do, is they can sometimes issue a bad credit rating for you, which I have found out doesen't affect you very adversly in the long run.

 

[sernow]

I thought I'd be able to figure out what you purchased on eBay to see how good or bad the deal you got really was to determine if I thought it was worth the trouble to try and break the contract. I can't find it though. What did you buy?

 

[teepeeca]

Let's see if I have this "right". You purchased, for what you thought was a good/fair price, on e-bay, a timeshare unit. You signed a contract. Later, you discover that the prices of timeshare units at that particular location are being reduced by other sellers, so NOW, you are considering trying to cancel the contract, since "I NOW can get it cheaper" !!!

I guess I'm just being an "old fogey", but MY word means something---does yours??? Just asking the questions you are asking, to me, it appears your word doesn't mean much. Do you agree???

Tony

 

[James1975NY]

I made a deposit on a timeshare after conducting a substantial amount of research. However, I now find that the prices for this resort are at an all time low (I think because of the bad economy). Now I am almost sick about the thought of having signed a contract for a price that is higher than the current market rate. I can can actually forfeit my deposit, buy another property in the same chain, and still save money.

Morally, I dislike backing out of a deal but think my deposit could be considered fair compensation to the seller for his trouble. But I wonder about the legal aspect. Because I signed a contract and mailed it back to the seller, could I be legally obligated to buy the property even though I have not paid the seller, and the deed has not been transferred to my name?

I definately sound like a newbie on this one. I appreciate all advice. Thank you.

What did you purchase exactly?
- Location
- Villa size etc.

What is the sales price?

Look at it like this.....

I have been doing resales for some time now...previously I was employed by Starwood. I did not do sales there but I was very aware of what the prices were by looking at account information. My sister who is an absolute Disney nut purchased directly from Disney (before I was doing resales). She is a very well educated person and both her and her husband are very well respected people professionally and within their communities.

They purchased directly from Disney and have not looked back. My brother-in-law once asked me over drinks last summer what the Disney programs are selling for on the resale market knowing that I could tell him exactly what he would pay for what they own now. My only response to him was, I will only tell you if you are interested in buying more. Otherwise, if you are using it (which they are) and it is not a financial burden (which it is not) then don't ever look back.

They have been doing Disney cruises and renting Disney timeshares for many years and with kids (none older than 11) they are going to continue to do the Disney thing for a while.

My brother completely understood why I would'nt share resale pricing and if my point isnt exactly clear, the bottom line is this....

There will always be a better deal. Are you happy with the price that you have committed to? Can you afford it? Are you happy with the program and do you see yourself using it?

If you answered "yes" to all of those questions, then buy it. If you answered "no" to any one of those questions, then you should not have entertained in in the first place.

Start thinking about your next vacation and anticipate the memories that you will make!!!!!

 

[riverdees05]

Many of us purchased our first timeshare from the developer and then learned about the resale market. I took a bath on the my first one, but I use it or trade it and I don't look back. Since then I have purchased 9 on the resale market and probably could have gotten some of the cheaper, if I had done this or that, but didn't. Learn from your initial purchase and use those learning on your next one.

 

[Toughbeat]

Ok, you bought from EBAY and said you conducted "a substantial amount of research" before buying. This is something people who buy directly from resorts during a timeshare presentation don't have the luxury of doing. They purchase while being subjected to high pressure sales and can't take the time to stop and do some research. That is why Rescission clauses exist.

You on the other hand bought from behind your computer from the comfort of your home and without any pressure whatsoever. Now you want to back out because you could find it cheaper somewhere else?

I can only imagine what your thread would look like if the seller suddenly found that their timeshare could sell for more than you paid and want to charge you more or back out altogether to sell to someone else at a higher price.

You would be here upset, and probably asking for advice on how to hold the seller accountable so you could complete the sale at your "agreed upon" price.

I think you know what is the right thing to do. I hope it turns out well for all parties.

 

[tombo]

You on the other hand bought from behind your computer from the comfort of your home and without any pressure whatsoever. Now you want to back out because you could find it cheaper somewhere else?

I can only imagine what your thread would look like if the seller suddenly found that their timeshare could sell for more than you paid and want to charge you more or back out altogether to sell to someone else at a higher price.

You would be here upset, and probably asking for advice on how to hold the seller accountable so you could complete the sale at your "agreed upon" price.

I think you know what is the right thing to do. I hope it turns out well for all parties.

What a great analogy! Sorry, but you bought the week. Pay the seller as you agreed to do.

 

[AwayWeGo]

Bargain Hunter's Remorse.

I feel miffed when I buy something at what I consider a good price, then soon afterward see the same thing for sale at a lower price. That causes me to smack myself in the forehead & mutter, "What a doofus!" -- or words to that effect.

A typical example is tanking up the car with regular unleaded gas for $2.899 per gallon, then seeing regular unleaded at another station 1 mile down the road for $2.699.

Instead of being glad I didn't have to pay $3.299 per gallon, I'm kicking myself for not tanking up at $2.699.

If I were better balanced, I'd realize that I'm coming out ahead any time I buy something at a favorable price even if that's not the lowest possible price out there.

By me, any time I buy a timeshare on the resale market instead of paying big bux to a timeshare company for their equivalent full-freight "new" timeshare, I'm coming out way ahead. Mox nix if it turns out that some other resale broker had the same thing for somewhat less.

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​

 

[Timeshare Von]

I agree that you should continue with the deal you inked . . . and learn from the experience . . . and be thankful you didn't buy from the developer. You are getting a deal, perhaps not the best one out there now, but it is still a deal.

 

[T_R_Oglodyte]

Let's look at it this way.

When you signed the contract you promised to do something; you said you would be a certain amount of money for something and the seller agreed. At that point you have both promised something to each other, and both of you have a reasonable basis to expect the other person to do what they promised.

It seems to me that there's a fundamental question here of what your word and your integrity are worth. Let's say that if you back out you might be able to buy the same thing for $5000 less, just to pick a number.

Why would someone not conclude from this that your promises and your integrity are up for sale, and the going rate is somewhat less than $5000.

Talent312 gives good advice on the amoral aspects of the issue. Those are important questions to consider.

I also know from my years of business experience that some people break contracts on a whim, simply for convenience, and others stick to their word. I have also found that people who break contracts on a whim are the riskiest people with whom to do business, because they are among the first that will attempt to take advantage of contractors, suppliers, vendors. My experience is that when a person displays a weak moral compass in one aspect of their affairs, there's a high probability that person will show a weak moral compass in other matters as well.

To me it all fits into an overall moral picture. Only you can decide where in that moral universe you want to place yourself and the amount of financial gain that is sufficient for you to break a promise.

 

[GoodWitch]

Thank you tuggers for your thoughts. I will go through with the contract as agreed upon even though it is painful. At least $2000 worth of pain.

I thought forfeiting my deposit would be fair to the seller considering that they would have my money, and still have the property to sell to somone else. But I see by the overwhelming consensus of your responses that when it comes to selling and buying timeshares, that logic is not widely accepted.

Thanks again to everyone who took the time to respond to me.

 

[calgarygary]

Thank you tuggers for your thoughts. I will go through with the contract as agreed upon even though it is painful. At least $2000 worth of pain.

I thought forfeiting my deposit would be fair to the seller considering that they would have my money, and still have the property to sell to somone else. But I see by the overwhelming consensus of your responses that when it comes to selling and buying timeshares, that logic is not widely accepted.

Thanks again to everyone who took the time to respond to me.

Logic is not widely accepted?? You might try to rationalize your wanting to not follow through on the contract however to describe those that would not or possibly could not support not honouring a contract as illogical is in itself illogical.