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The following is a great FAQ about the closings of a Timeshare sale. This was provided by Timeshare Title TS Title
When does the seller get paid?
The seller gets paid once all other steps of the closing process have been completed and approved by the attorney/ closing agent. This includes the signing and notarization of all closing documents related to the transaction. Once the Buyer's funds have been cleared, the money will be disbursed to the Seller.
Where is the buyer's money held before it is disbursed to the seller's account?
The Buyer provides the balance of the purchase price to be held in a separate escrow account pending the closing of the transaction. The funds will not be disbursed to the Seller until they have been cleared by the bank providing the escrow account.
What is a deed?
A deed is a legal document which is used to transfer from a person or entity certain rights in a parcel of real estate to another. It is used in all purchases sales gifts or other transfers of real estate..
Are there different kinds of deeds?
The two most common types of deeds are the Warranty Deeds and Quitclaim Deeds.
A Warranty Deed (“General Warranty Deed”) is the type of deed most commonly used in timeshare title transfers. A warranty deed transfers all rights to a property from a Grantor (Seller) to a Grantee (Buyer.) However, a warranty deed also contains certain promises or guarantees about the property made by the Seller to the Buyer. Warranty Deeds are used to ensure that the Buyer is getting exactly what the Seller claims—nothing more or less. If any of the warranties are later found to be false, the transaction may be legally challenged.
A Quitclaim Deed, on the other hand, simply transfers all rights to the Buyer without any guarantees about it being claimed. All representations about it are made either verbally or through other documents. However, the transaction may not be as easily challenged should the new Owner later discover discrepancies about the property and the manner in which it was represented. These are usually used in transactions such as gifts, where no money is exchanged.
Is joint ownership possible with timeshare properties?
Yes, two or more individuals may obtain ownership of a timeshare property. However, the exact nature of the joint ownership should be considered. A “tenants in common” relationship implies that all owners share equal proportions of the property, which may consequently be passed on to heirs as outlined by a will. The owners may also claim “joint ownership with right of survivorship.” In the case of one owner's death, this arrangement would mean that all rights are passed on to the surviving owners—regardless of what may be claimed in the deceased's will.
How is a deed recorded in a timeshare title transfer?
It generally must be filed in the county in which the title is located, at the Clerk of the Circuit Court. Recording the deed is extremely important in assuring that the transaction appears in the chain of title, should any complications arise further down the road. The recording of the deed with the proper government agency is part of our timeshare title transfer service.
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Glossary of Terms
Deed of Title – Legally-binding document that specifies ownership, gives a Legal Description of Property, and outlines the rights granted to the Owner of the Property.
Escrow Account – A temporary account used as a mediator between the financial accounts of the Grantor and Grantee while all aspects of the closing are being processed. It is used as a method of verifying for the Seller that the Buyer's funds are good, and as an assurance to the Buyer that the funds will not be disbursed until all the documents have been properly filed and all relevant fees are made known.
Estoppel Certificate – A certificate or letter from the resort that outlines the exact status of the timeshare property. It explains any maintenance fees pending, as well as the rules or restrictions on how the timeshare may be used.
Grantor – The Seller in a timeshare title transfer. The Grantor is the person who owns the property and is in the process of granting all rights of ownership to the Grantee (the Buyer.)
Grantee – The Buyer in a timeshare title transfer. The Grantee is the person who is receiving rights of ownership to a property from the Grantor (Seller.)
Legal Description of Property – An exact description of the property, filed with public records, and is derived over time through the chain of title. Any significant changes made to the property will require an update of the Legal Description as it appears in the title before granting ownership to another individual.
Quitclaim Deed – A Quitclaim Deed is a Deed of Title that contains no warranties from the Grantor to the Grantee. The property is deeded “as is.” This is type of deed is most common in gift transactions.
Warranty Deed – A Warranty Deed is a specific kind of Deed of Title. A Warranty Deed grants all rights of ownership to the Grantee, but it also contains certain promises or “warranties” from the Grantor. Should any discrepancies later arise, the Grantor will be held responsible for the veracity of all warranties made in this Deed of Title.
The seller gets paid once all other steps of the closing process have been completed and approved by the attorney/ closing agent. This includes the signing and notarization of all closing documents related to the transaction. Once the Buyer's funds have been cleared, the money will be disbursed to the Seller.
Where is the buyer's money held before it is disbursed to the seller's account?
The Buyer provides the balance of the purchase price to be held in a separate escrow account pending the closing of the transaction. The funds will not be disbursed to the Seller until they have been cleared by the bank providing the escrow account.
What is a deed?
A deed is a legal document which is used to transfer from a person or entity certain rights in a parcel of real estate to another. It is used in all purchases sales gifts or other transfers of real estate..
Are there different kinds of deeds?
The two most common types of deeds are the Warranty Deeds and Quitclaim Deeds.
A Warranty Deed (“General Warranty Deed”) is the type of deed most commonly used in timeshare title transfers. A warranty deed transfers all rights to a property from a Grantor (Seller) to a Grantee (Buyer.) However, a warranty deed also contains certain promises or guarantees about the property made by the Seller to the Buyer. Warranty Deeds are used to ensure that the Buyer is getting exactly what the Seller claims—nothing more or less. If any of the warranties are later found to be false, the transaction may be legally challenged.
A Quitclaim Deed, on the other hand, simply transfers all rights to the Buyer without any guarantees about it being claimed. All representations about it are made either verbally or through other documents. However, the transaction may not be as easily challenged should the new Owner later discover discrepancies about the property and the manner in which it was represented. These are usually used in transactions such as gifts, where no money is exchanged.
Is joint ownership possible with timeshare properties?
Yes, two or more individuals may obtain ownership of a timeshare property. However, the exact nature of the joint ownership should be considered. A “tenants in common” relationship implies that all owners share equal proportions of the property, which may consequently be passed on to heirs as outlined by a will. The owners may also claim “joint ownership with right of survivorship.” In the case of one owner's death, this arrangement would mean that all rights are passed on to the surviving owners—regardless of what may be claimed in the deceased's will.
How is a deed recorded in a timeshare title transfer?
It generally must be filed in the county in which the title is located, at the Clerk of the Circuit Court. Recording the deed is extremely important in assuring that the transaction appears in the chain of title, should any complications arise further down the road. The recording of the deed with the proper government agency is part of our timeshare title transfer service.
- top -
Glossary of Terms
Deed of Title – Legally-binding document that specifies ownership, gives a Legal Description of Property, and outlines the rights granted to the Owner of the Property.
Escrow Account – A temporary account used as a mediator between the financial accounts of the Grantor and Grantee while all aspects of the closing are being processed. It is used as a method of verifying for the Seller that the Buyer's funds are good, and as an assurance to the Buyer that the funds will not be disbursed until all the documents have been properly filed and all relevant fees are made known.
Estoppel Certificate – A certificate or letter from the resort that outlines the exact status of the timeshare property. It explains any maintenance fees pending, as well as the rules or restrictions on how the timeshare may be used.
Grantor – The Seller in a timeshare title transfer. The Grantor is the person who owns the property and is in the process of granting all rights of ownership to the Grantee (the Buyer.)
Grantee – The Buyer in a timeshare title transfer. The Grantee is the person who is receiving rights of ownership to a property from the Grantor (Seller.)
Legal Description of Property – An exact description of the property, filed with public records, and is derived over time through the chain of title. Any significant changes made to the property will require an update of the Legal Description as it appears in the title before granting ownership to another individual.
Quitclaim Deed – A Quitclaim Deed is a Deed of Title that contains no warranties from the Grantor to the Grantee. The property is deeded “as is.” This is type of deed is most common in gift transactions.
Warranty Deed – A Warranty Deed is a specific kind of Deed of Title. A Warranty Deed grants all rights of ownership to the Grantee, but it also contains certain promises or “warranties” from the Grantor. Should any discrepancies later arise, the Grantor will be held responsible for the veracity of all warranties made in this Deed of Title.
JEMartin
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