"...Seller can elect Buyer to...RETAIN property" due to SELLER ERROR???

[Garnet]

I won an auction the other day and received the contract from the Seller.

Wow! Am I reading this correctly? This seems weird. Here is the the lines, copied from the Contract for Resale:

If, for any reason, Buyer is not 100% completely satisfied with your purchase due to a representation error by Seller
or an undisclosed encumbrance on the title, Buyer may receive a Total Purchase Price refund and Seller may elect to require Buyer to return the property or retain the
property. In order to exercise this right, Buyer must provide Seller 30 days to cure any issue before Buyer posts any negative feedback with any third party. (Emphasis added.)

I haven't contacted the Seller yet (really late and I want to think on it). That said, I have changed it to say Seller will require Buyer to return the property. Has anyone else run into this?

 

[Dave H]

I won an auction the other day and received the contract from the Seller.

Wow! Am I reading this correctly? This seems weird. Here is the the lines, copied from the Contract for Resale:

If, for any reason, Buyer is not 100% completely satisfied with your purchase due to a representation error by Seller
or an undisclosed encumbrance on the title, Buyer may receive a Total Purchase Price refund and Seller may elect to require Buyer to return the property or retain the
property. In order to exercise this right, Buyer must provide Seller 30 days to cure any issue before Buyer posts any negative feedback with any third party. (Emphasis added.)

I haven't contacted the Seller yet (really late and I want to think on it). That said, I have changed it to say Seller will require Buyer to return the property. Has anyone else run into this?

Wow.... they way I read that is if there is a lien, you get your money back and maybe keep the property and the lien that went with it. I could see that working if they transfered property on a Quit Claim Deed, but under the terms of a General Warranty Deed, the seller agrees to defend the title if there is a lien on the property.....

Very interesting... That is why I never recommend a Quit Claim Deed.

Dave

 

[vacationhopeful]

Yes, won the auction, paid, settled and had a unit size problem. Got ALL my money back - including all settlement costs and still have the deeded Florida beach February week.

Doh ... I did want the week ... Do you want that week, might be the real question?

 

[bnoble]

Definitely get clarification, as it might just be poorly worded.

I can imagine that what they are trying to say is: "Seller may elect to require Buyer to return the property (if the deed had been sent for recording) or (Seller may) retain the property (if it had not)."

 

[Garnet]

Right season want the unit...wrong season, no

I definitely want the unit-assuming it is a platinum week. Platinum time frame correctly on the contract. However, no underlying deeded week is there. Yes, another question for the Seller.

If it is a low Silver week-I don't want the unit (or don't want if Gold week.)

Right now, I have changed the language of the contract to say they WILL take the unit back. I don't want to rely on verbal clarification. As written, it gives the Seller the option.

 

[theo]

I definitely want the unit-assuming it is a platinum week. Platinum time frame correctly on the contract. However, no underlying deeded week is there. Yes, another question for the Seller.

If it is a low Silver week-I don't want the unit (or don't want if Gold week.)

Right now, I have changed the language of the contract to say they WILL take the unit back. I don't want to rely on verbal clarification. As written, it gives the Seller the option.

It seems that you are attentively performing appropriate due diligence. However, do keep clearly in mind that you cannot just unilaterally "change" the terms of the initial contract on your own and have those changes "stick". If you've made changes and initialed them, then those changes will ultimately have to be overtly accepted by the other party upon receipt of the (now altered) original contract document.

No underlying deeded week reflected in the contract is a separate (and very strange) issue entirely. Absent that critical info, what can the contract possibly purport to be for in the first place?

 

[Keitht]

If I'm reading this correctly then if there are representational errors by the Vendor, the Vendor will refund fees and has the final say on whether the purchaser retains ownership or ownership reverts to the Vendor.

Taking that to extremes, the Vendor could claim in the advert that it's a high demand week in a sought after resort, but when the deeds arrive it's actually a dog trader in the back of beyond. The purchaser complains about 'representational errors', the vendor apologies and returns the fees. The kicker is the vendor saying the purchaser retains title thereby being stuck with the ongoing liability i.e. maintenance fees for something they didn't want in the first place.
Everything has actually worked out great for the vendor, but no so for the purchaser.

 

[isisdave]

Buyer may receive a Total Purchase Price refund and Seller may elect to require Buyer to return the property or retain the
property.

I think this means Buyer may receive a Total Purchase Price refund and Seller may elect to require Buyer to return the property (if it has already been transferred) or (Seller may) retain the property (if it has not already been transferred).

But I'd sure clarify this, and also ask the question "if someone has paid to have the transfer done, and it is undone as a result of Buyer's cancellation due to this clause, who pays the expenses of having it undone?"

 

[Garnet]

Driving me nuts....

Thanks Theo for the reminder I can't just change wording..although after the response I got, I kinda wish I just did it!

The week is simply stated as floating weeks 1-21 and 50-52. This corresponds to platinum usage.

When I called and explained...the woman said no problem. I'll change that so its not "Seller may elect.." anymore. Now this is what is says...

If, for any reason, Buyer is not 100% completely satisfied with your purchase due to a representation error by Seller
or an undisclosed encumbrance on the title, Buyer may receive a Total Purchase Price refund and Seller may elect to require Buyer to return the property.

NOT REALLY CHANGED!!!!! I still could be stuck with their mistake!

 

[DaveHenry]

I've changed the wording in the Word document

The wording was included in a contract that I received. I changed the wording in the Word document before signing it. That way it didn't appear as a change to the document that needed to be accepted. (I was the first signatory.) Of course, I alerted the seller to the change.

 

[richardm]

I would recommend extreme care.. Don't forget, often these properties are POA type closings from the postcard companies.. Their primary goal is not the sales price (remember they were paid upfront by the seller) but simply to transfer title to another party.

If I'm the PCC- I'd very happily return your low dollar bid amount and closing costs just to be rid of an albatross week! There are already many threads documenting the poor quality of property verification on these ebay auctions (sometimes, not even the resort itself is correct)- so I wouldn't recommend you depend on the sellers good faith to protect you.

"I think this probably means...." does not sound like a buyer's due diligence has been completed. If you buy under these terms, you'll deserve the consequences.

Russian roulette used to be played with a revolver- now it happens with eBay timeshare auctions!

 

[Garnet]

The wording was included in a contract that I received. I changed the wording in the Word document before signing it. That way it didn't appear as a change to the document that needed to be accepted. (I was the first signatory.) Of course, I alerted the seller to the change.

Perfect. I decided to do the same. In fact, since they didn't change it satisfactorily the first time....I decided they were also missing a Sellers Warranties Section and wanted MFs and Taxes spelled out more clearly. Having several other resale contracts (for other TS purchases) was very handy indeed. Hopefully as will be well...especially after spending all that time reading, comparing and taking notes on several contracts. All in all, a good exercise. Thanks everyone for your help.

Big warning to read those contracts!!!:zzz: