Anyone ever have trouble with a deal AFTER recorded, BEFORE transfer?

[Sattva]

My question is can anything happen (sour the sale/transfer) once the deed has been recorded in my name but Marriott has not yet transferred it...

Seller would like me to release funds on recording of deed, not on transfer of membership by Marriott.

LTTransfer suggested I wait until Marriott completes the transfer to release the funds.

I know you guys will have experience in this...
TIA!

 

[Saintsfanfl]

Alot can happen. This is a big problem with timeshare transfers. Traditionally title passes when a deed is prepared and signed. It doesn't even have to be recorded. Since legal title to the property has passed, the seller is due their money.

BUT. You can prepare a deed for anything real or fabricated. That doesn't mean you will ever actually receive what the deed says you are supposedly entitled to. I once bought a timeshare and a deed was prepared referencing a timeshare unit that did not exist. With a timeshare there is another very important party involved that can decline to process the transfer. Since most people do not perform proper due diligence, or they receive erroneous information, it is in the buyer's best interest to wait for the final transfer.

BUT. What is the seller's recourse if the buyer fails to pay after the transfer is completed? There is no practical recourse for the seller to collect the funds. They cannot legally transfer the property back to themselves. Because of this I would never in a million years accept payment post transfer. The closest I came recently was a personal check written to me and held by LT. But I did my due diligence on the buyer and had a reasonably high level of trust in them.

Sorry this is not a simple answer but the whole thing is a conundrum. This is why using an escrow is prudent.

 

[DeniseM]

Yes - I had one that did not record with the mgmt. company, because it was in foreclosure, and the whole deal had to be unwound. Fortunately, the seller refunded my money.

 

[vacationhopeful]

You all choose the Title Company ... you are FOLLOWING their business procedures ... stick to YOUR GUNS... LT Transfer is experienced to NOT fall for that ... and for GOOD reasons, no doubt.

I wonder if Seller already USED the 2016 week for a exchange company deposit? Or do they owe MFs for several years? Or an unpaid assessment?

OR Might be just eager to get "their" money ...
except the transfer is NOT YET DONE according to the transfer agency you BOTH decided to use.

 

[Saintsfanfl]

Also, the purchase agreement should clearly state when funds are to be transferred. Look at your agreement. Most real estate agreements specify a release of funds to the seller at the point of the deed preparation. All big broker companies do this, even with timeshares. It doesn't mean it isn't a mistake, but from a legal title stand point it makes sense.

These companies will also perform better due diligence than most. It's the lack of due diligence on the part of the closing company that is the real issue. Nobody wants to perform extra work on a cheap timeshare transfer. They do as little as possible.

 

[sjsharkie]

As a seller, I would balk at receiving funds after transfer for real estate transactions. For all of my sales, money is either required up front (usually for small $ transactions) or put in escrow for release at closing.

If the real estate agreement is silent, I would think most states would rule that the funds are disbursed upon deed recording. However, if allowed by statute, I assume you could put something in the agreement to have funds disbursed upon transfer. However, as a seller, this is not something I would agree to.

I did have one issue where as a buyer, the seller and I agreed to wait until transfer before disbursing a portion of the funds because there was an issue with usage reported on the estoppel that conflicted with the purchase agreement. Because we didn't want to wait another couple weeks for the estoppel to be corrected, we agreed this would be the prudent course of action.

This is different from RTU/club type agreements with no underlying real property transfer where I agree it is reasonable to send funds on transfer.

It is true that there are things that can sour based on transfer requirements, but those should be validated with an estoppel prior and IMHO should not be the obligations of the seller to deal with after the close.

-ryan

 

[Sattva]

Thank you all.
The sales contract says upon transfer.
I included that on LT's suggestion.
All funds are in escrow with LTTransfers.

Seller has been very anxious for funds throughout...

I once had a seller sign a contract with me, and when LTTransfers submitted the ROFR to Marriott, we learned the seller had also engaged Marriott in a buyback "as a safety net". Seller could not imagine why this was a problem.

TY again.

 

[camachinist]

I'm currently, as a seller, in that interim period between deed recording and resort transfer with Marriott intervals escrowed with TTI so will report back on the timeline and process. I ordered estoppel and it and ROFR cleared with no issues a couple weeks prior to deed recording. The escrow company was submitting the evidence of recording to Marriott, along with the transfer documents, as soon as received. So far, we're about 50 days into the escrow process.

 

[BJRSanDiego]

My own (good) experience

In the past 45 days, I closed on a Marriott with a private seller through TUG classified.

I made an offer to the seller and paid 10% down directly to him. Based on our agreement, all documented in our email correspondence, I contacted LTT and started the process. Somewhere around the time that I had received both Estopples and the seller had signed the deed, I sent a cashier's check to LTT to hold until the transfer was complete. The seller had some protection that I had good funds and I had some protection that the seller wouldn't get their money until everything had correctly transferred. At the point when Marriott had confirmed that I was the new owner, LTT express released the cashier's check to the seller. I might add that the seller was a tugger, and had experience with timeshares. We both felt comfortable that we were dealing with someone reputable and in good faith. In this day and age, that can be a bit of a luxury, I suppose.