Need advice on problem with closing a timeshare purchase

I purchased a resale on eBay in March of this year. The seller had no feedback so he agreed to have a 100% eBay rated company in CA handle the closing. The eBay ad stated "92,500 Bonus Points Free". The transfer contract had a statement in large text that "There are 92,500 points available to use now". The ownership was transferred but there were no additional points beyond the points for the latest use year for which maintance fees were paid. The closing company has agrued that this is a dispute to be resolved with the seller. The closing company initially offered their understanding of the term "92,500 points available" stating that these were the 92,500 points that are in my account. I explained that these points were not available until months after the transfer contract was signed and not until the maintenance fees were paid. I have agrued that the closing company needs to give a reasonable meaning to all the wording in the contract. I have asked them to contact the seller to get his understanding of the terms in question. Doesn't the closing company have an obligation to interpret the contract in order to determine if the terms have been completed before distribution of funds? The value of the points is about $700. I would appreciate any advice from fellow Tuggers. I don't plan to take formal legal action put do plan to advise fellow Tuggers of the problem if the matter is not resolved. I will also file a complaint with the BBB and move on.

I agree that this is very poor service, but these questions should have been asked before you bought the TS, and you should have asked for an estoppel letter to document exactly what you were buying. If the deed has been recorded in your name, you probably have no recourse at this point, unless the closing company decides to cooperate voluntarily.

Is the closing company and seller one and the same? If so it makes it that much tougher. Ask for a full refund.

When everything is settledbe sure to post both companies on TUG and other places for others to know.

closing a timeshare

I'm in the process of closing an eBay TS right now, that is similar. The 2009 points + 2010 points (that will be earned just after the RCI account is set up), are both to appear in the account when everything is done.

After reviewing the posts/info on TUG I was prepared and verified that the 2009 points were called out seperately from the 2010 points, and were specifically included in:
- the Contract Purchase Agreement,
- in the Closing Company Contract,
- the Buyer-Seller Contract/Estoppel, and
- Final Buyer-Seller Compliance Agreement the closing company uses to satisify their guarantee.

Thanks to Denise and other TUGgers! ...now I've got another ~4 weeks to wait before I can verify it went the way it should.

Chuck

Also - have you contacted the seller?

I'd surely prefer to "back" a fellow Yankee here, but...

eliotmark said:

Doesn't the closing company have an obligation to interpret the contract in order to determine if the terms have been completed before distribution of funds?

Click to expand...

In a single word --- no (imho, anyhow). The closing company function is to independently effect the proper transfer of ownership upon (i.e., after) buyer and seller agree to terms (and accordingly, the meaning and understanding thereof) between themselves. Absent any questions or concerns expressed by either party in advance of closing, it seems to me that the role of the closing company is simply to "make it happen".

Unless the seller and the closing company are actually one and the same entity, in which case there is some questionable "grey" area, I'm not confident that you have much of a leg to stand on here...

I used almost all closing companies recommended here on TUG, and my impression is :
They don't want to be involved what contract says (what buyer and seller made arrangement).
They just did their work fast and efficiently - transfer the ownership legally.
When I asked about the "guarantee of what I am buying", they said it's broker's work and they are not brokers, so buyer and seller should make a sales contract and if needed, they could provide forms, but didn't want to be involved.

So I would contact seller and try to find a solution.

Thank you for your help/one other question

Thank you for your help. I'm still working the problem and will post if and when the issue is settled. If the seller agrees that the prior year points were included in the original contract but the points are now no longer available and further agrees to adjust the agreed contract price, is it likely the closing company will accept and make a distribution of funds based on a revised agreement? Adding to the problem, the seller has gone out of business/declared bankruptcy. Who has authority to renegotiate the original purchase contract? Thanks again!

eliotmark said:

Thank you for your help. I'm still working the problem and will post if and when the issue is settled. If the seller agrees that the prior year points were included in the original contract but the points are now no longer available and further agrees to adjust the agreed contract price, is it likely the closing company will accept and make a distribution of funds based on a revised agreement? Adding to the problem, the seller has gone out of business/declared bankruptcy. Who has authority to renegotiate the original purchase contract? Thanks again!

Click to expand...

You may have another issue that you need to be focused on. You say the seller is in bankruptcy. HAS YOUR DEED been recorded yet. If it has not, and the seller is in bankruptcy, you have a different problem to worry about as the court does not usually allow transfers of property without court apporval when a BK has been filed.

yumdrey said:

I used almost all closing companies recommended here on TUG, and my impression is :
They don't want to be involved what contract says (what buyer and seller made arrangement).
They just did their work fast and efficiently - transfer the ownership legally.
When I asked about the "guarantee of what I am buying", they said it's broker's work and they are not brokers, so buyer and seller should make a sales contract and if needed, they could provide forms, but didn't want to be involved.

So I would contact seller and try to find a solution.

Click to expand...

Closing companies should follow the terms of the contract, that is the prevailing documents. Good closing companies will get you an estoppel letter showing no maintenance fees are due, but if you want a guarantee of what you are buying is free and clear of all title defects, that is what a title search and title policy cover.

As part of a closing, we do not do a title search unless we have been asked to do one and that we have been paid for the work that has to be done and the liability that is taken on.

Also, most closing companies, even the ones listed here on TUG are not title companies, so they are limited in the services they can provide.

The more information you can provide a potential buyer of your timeshare, the better. Unit number, assigned week, points value, exact amount of maintenance fees, and square footage of your unit are all potentially important factors for a quick sale