Transaction on E-bay

norag · Mar 20, 2008

I'm hoping that someone can help me out as far as best payment on a timeshare through e-bay. Is it safe to pay through a bank to bank transaction (wire)or pay through pay pal using visa. I'm a little nervous sending money to someone I don't know and have no clue how to protect against fraud. It seems to me that you have to wait a long time before you have anything in hand and this makes me uncomfortable!!!
Thanks in advance.... This group has been very helpful

GrayFal · Mar 20, 2008

norag said:
I'm hoping that someone can help me out as far as best payment on a timeshare through e-bay. Is it safe to pay through a bank to bank transaction (wire)or pay through pay pal using visa. I'm a little nervous sending money to someone I don't know and have no clue how to protect against fraud. It seems to me that you have to wait a long time before you have anything in hand and this makes me uncomfortable!!!
Thanks in advance.... This group has been very helpful

Normally, with an ebay auction - you would not be sending any money to an 'individual' but to a closing company who holds the funds in escrow until the deal is completed.
Be sure to check to see what is advertised is what you are getting - ask the closing company to get an estoppel letter from the resort to make sure the MFs are up to date and the unit and week are correct.

norag · Mar 20, 2008

It said in the auction:
"that Since we oversee the transfer of this property utilizing a designated account for monies collected, we do not use escrow services. Payment must be made in full before transfer of membership or title can begin"

BLUE AYES · Mar 20, 2008

I would be a little hesitant if a private person was writing that, maybe less so if you bought from a timeshare broker.
The most common way to purchase a TS is with an escrow account through a "closer" who protects you by doing title, lien and MF searches.

arlene22 · Mar 20, 2008

Calling JohnMFaeth...Come in JohnMFaeth...

(If he doesn't see this thread, you might want to PM him about this. He owns a closing company and is very knowlegable about such things and very generous with his time and advice)

Personally, I don't think I would bid on such an auction. Since buyers are traditionally the ones to pay the closing company, they shouldn't object if you insist on using one. If they do, well, that would make me wonder why...

LisaRex · Mar 20, 2008

"Since we oversee the transfer of this property utilizing a designated account for monies collected, we do not use escrow services. Payment must be made in full before transfer of membership or title can begin"

The seller is missing the point of why an escrow service is important: it protects the BUYER from handing their money over to someone who will pocket the money and deliver nothing. The escrow company holds your money until the seller has delivered on his part of the contract. If he doesn't deliver, you get your money back.

I would never send money to a private party and just hope that they are honest. In this case, I would insist on using a reputable closing company even if that meant paying for their services myself.

DeniseM · Mar 20, 2008

Don't do it - since you, the buyer, pay for closing/escrow there is no reason for a legitimate seller to refuse closing/escrow services. Befor you bid, email the seller and ask if they will accept closing/escrow that you pay for. If they won't, then don't bid. If they do, then YOU should choose the company. I recommend Tugger, JohnMFaeth - you can send him a TUG private message at that name.

lprstn · Mar 20, 2008

When doing a purchase like this through Ebay, call the title company directly. This doesn't look legit. Better safe than sorry.

DavidnRobin · Mar 20, 2008

DO NOT SEND $$ to an individual - if they insist - pass - and tell them why. If they threaten you with a bad eBay rating - tell them you will do the same and state in your feedback why. Plus - contact eBay to challenge the rating.

beachdiva · Mar 20, 2008

I agree with all the advice that's been given here. I received an email last weekend with an offer to purchase my WKV week. The person offered slightly less than asking price (which was fine), but it was odd the way they said because it's an all cash deal, that no money would transfer until transfer of ownership was recorded by Starwood (I'm paraphrasing here), and they even gave the name of the responsible Starwood person (although I didn't care to follow up), and oh, btw, in case I hadn't already made a "protective" reservation for next year, they'd like me to get that done for them, too. The whole thing looked legit, but it just wasn't quite right (years of reading on TUG helped me here!). I emailed him back and said I'd accept his offer price, but I wanted to use First Am Title co for escrow and transfer of funds to protect both of us. Never heard back from him ... . go figure! Not surprised there. If it smells like a skunk. . . it's probably a skunk.

Lesson here - always use a reputable closing co or title co for closing on purchase/sales

trader14 · Mar 20, 2008

I personally would balance the value you are getting against the risk you are taking and look at the feedback the person has. If he is new to ebay or has little feedback I would run for the hills however if he is established as a seller NOT A BUYER then i would consider it.

tomandrobin · Mar 20, 2008

Unless I was dealing with a friend or family, I would use an escrow service and a reputable closing service.

norag · Mar 20, 2008

Thanks for all the responses. I've already sent the seller the deposit. I did not ask about the escrow service yet, however I called visa and they said that my platinum card protects me from anything fraudulent. The seller is a power seller on e-bay and was quite nice on the phone. He also frequents this site. I didn't get an exceptional deal however, one that I feel comfortable with. However I do wish it was being done in the normal fashion. I'll call him now and ask him if it is o.k to do this and let him read these comments.
Thanks again...
How do I get in touch with this TUG user's escrow service????

SDKath · Mar 20, 2008

Ugh. Trust me, from someone who had a lot of trouble with an escrow, you DO NOT want to get involved in someone who is not using an escrow service or professional closing company! Your Visa card will protect you if you are defrauded BUT if the deeds are incorrect and they sell you a bad title or the wrong unit or an unclear deed (where the previous owner owes $$ on the TS), you have no protection.

And now that you say it's not a great price, I would pull out. Just ask for a refund from the seller NOW. If they don't give it, call VISA and refute the charge. Katherine

norag · Mar 20, 2008

God this is stressful. I called the guy and he said he would be willing to use escrow.com (e-bay). However when I phoned them up they told me they do not do timeshares.

beachdiva · Mar 20, 2008

First American Title Co has a timeshare resale dept. Price seems competitive. I've just started the process with them. No glitches to report so far.

DeniseM · Mar 20, 2008

TUG doesn't have an escrow service... I suggested Tugger JohnMFaeth who does own such a service - you can contact him by sending a TUG private message to JohnMFaeth.

norag · Mar 20, 2008

Thanks Denise, I sent him a PM.

The seller is really wanting to settle this without an escrow service and charging 399.00 in closing fees, however I've e-mailed him with a name of an escrow service in orlando. I will feel much more comfortable closing this way, however I'm not sure if he will agree.

This site is very helpful. I have to say that I was very naive about the whole process. So thanks for all the help!
Nora

BLUE AYES · Mar 20, 2008

Norag,

Whats not to agree. The purchaser pays closing costs. It wont cost him a dime. It is there to protect your investment. If he balks, CANCEL.

Blue Ayes Esq.

DeniseM · Mar 20, 2008

norag said:
Thanks Denise, I sent him a PM.

The seller is really wanting to settle this without an escrow service and charging 399.00 in closing fees,

This is OUTRAGEOUS - they aren't going to use a closing company, but they are going to charge you $399!

What are you GETTING for your $399 fee?

I wouldn't do it! Don't send any more money until this is straightened out.

A gentle suggestion: In the future these kinds of important details should be ironed out before you even bid...

DeniseM · Mar 20, 2008

BLUE AYES said:
Norag,

Whats not to agree. The purchaser pays closing costs. It wont cost him a dime. It is there to protect your investment. If he balks, CANCEL.

Blue Ayes Esq.

The seller is balking because he wants the $399 closing fee!

Who is the seller???

norag · Mar 20, 2008

The seller offered to return my deposit minus 75.00 for ebay listing expenses. I don't mind working out the deal, however it is getting a little concerning to send over 8000.00 to someone and receive nothing for several weeks. To tell you the truth you do need to have a certain level of knowledge and common sense when bidding on e-bay (duh). I thought I knew what the process was???The wiring of that amount of money with only good faith is unfortunately too much to ask in my opinion. I can't see anyone else purchasing this timeshare unless he does go through an escrow company.
I have certainly learned a lot through this process and all your feedback has certainly been a huge help. Believe or not I am a fairly educated person just a little stupid when it comes to this.... but I'm learning with your help. Thanks again. i'll let you know how it turns out???

DeniseM · Mar 20, 2008

norag said:
The seller offered to return my deposit minus 75.00 for ebay listing expenses.

I think this is fair, except I am not sure it will cost him $75 to relist the timeshare. I believe ebay has a rule that if the buyer backs out, the seller gets to relist for free?

I had a similar experience once, and I asked the seller to send me a copy of his listing fee and I would gladly reimburse him - I never heard from him again.

trader14 · Mar 20, 2008

DeniseM said:
I think this is fair, except I am not sure it will cost him $75 to relist the timeshare. I believe ebay has a rule that if the buyer backs out, the seller gets to relist for free?

Get your money back and look for something else, re ebay fees sellers pay for relisting however the fee is refunded only if the item sells

keep us posted on what you do

DavidnRobin · Mar 20, 2008

If you paid by credit card - I would contact the CC company and contest the charge - 100% - immediately. Do not pay this idiot anything - not even the $75 - they should pay you for your time and energy wasted on. Total BS. This person is a common TS seller???!!! Hard to believe.

If you paid by wiring a fee - then take the $75 loss as a lesson learned.

This is their fault - not yours (other than sending the $ directly to them). Escrow is opened for the very reason to protect you as the buyer - and therefore the closing costs are bourne by the buyer - the seller has zero risk.

If you want to proceed - identify a closing company (there are many) - and request the funds be sent to the Title company - and then you send your closing fee to that company - and then all transactions go thru this company.

Never, ever send $ directly to a eBay seller for a deeded property.... this is what Title companies are for.

Transaction on E-bay

norag

GrayFal

TUG Review Crew: Expert

norag

BLUE AYES

arlene22

LisaRex

TUG Review Crew

DeniseM

lprstn

TUG Review Crew: Veteran

DavidnRobin

beachdiva

trader14

tomandrobin

norag

SDKath

norag

beachdiva

DeniseM

norag

BLUE AYES

DeniseM

DeniseM

norag

DeniseM

trader14

DavidnRobin