Selling a TS, when do you get paid?

I have an offer for my TS. My only concern is that I won't be paid until the deed records. The agent said it takes 6 weeks in Virginia. Is that normally? How do I make sure I will be paid once the deed record completes?

janej said:

I have an offer for my TS. My only concern is that I won't be paid until the deed records. The agent said it takes 6 weeks in Virginia. Is that normally? How do I make sure I will be paid once the deed record completes?

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Typically, proceeds are not released from escrow until the deed is recorded and if title insurance is involved, its issuance is authorized. That is becuz who knows if you've incurred other liens or signed other deeds that beats theirs to the county office. But it really depends on the customary practices of the real estate industry in Virginia.

In an informal transaction, with no escrow or closing agent, you don't hand over a deed until you see cash on the barrel-head.

You make sure you get paid by using a reputable closing/escrow company. Who are you using?

Thanks for the information. The transaction is handled by NTHC. They agree to give us the check when we hand over our signed deed. Since we are only two hours away, we will go there for a weekend just to be safe.

Doesn't sound quite right to me...

janej said:

The transaction is handled by NTHC. They agree to give us the check when we hand over our signed deed.

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So, from the buyers' perspective, you're going to receive (and cash) their payment before (perhaps as long as 6-8 weeks before) the new deed gets officially recorded in their name as the new owners?

Sounds great for you, but I certainly would not be happy about that sequence of events if I was the buyer. This sequence of events sure does not fit my concept of proper "escrow" of transaction funds....

This is the first time I sell a timeshare that is worth anything. I don't think it is out of the line with other real estate purchase though. Don't we normally receive fund as soon as the deed was sent for recording? The title research should be done beforehand, right? When I purchased my home, the recorded deed come back a few weeks later. I don't think the seller had to wait that long to receive fund.

The owner of NTHC is a long-time, respected TUG member - you will be just fine.

janej said:

Don't we normally receive fund as soon as the deed was sent for recording? The title research should be done beforehand, right?

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Typically, after recording, the title search is continued from the inital search to make sure that no liens or interests have been appeared in the record between that time and the recording of the deed. For all they know, you may have sold the unit to two or three other people, and whoever's deed is recorded first wins the booby prize.

With a TS, it may be so unlikely or the amount so small that the escrow service/closing agent is willing to release funds on receipt of deed, but if it were of more significant value, waiting for the dust to settle is the better practice.