Can a corporation own a timeshare?

[newperson]

or does it have to be deeded in the names of the people using it?

 

[Westin5Star]

What I am writing is based on assumptions made from my experiences. I am sure that there are some lawyers or others on the board with some more direct experience on this.

I believe that a TS is real property. A corporation is an entity that is allowed to own real property. Therefore, technically a corporation is allowed to own a TS. The TS company may be able to require names attached to the corporation for usage.

I happen to own all of our TSs in our Living Trust. Good luck with figuring this out.

 

[abdibile]

The developers usually own lots of weeks before they sell it to people. And developers are often corporations, right?

 

[Troopers]

I don't know. Does your question pertain to Starwood properties?

This thread may be more appropriate elsewhere.

 

[DavidnRobin]

I know that it does not have to be deeded to the names of the owners since in my WSJ purchases it was deeded to a LLC (consisting of 2 married doctors that likely did it to separate their business from a family owned venture). However, in the CCRs of various SVO resorts it does specifically list who cannot own their VOIs - but you will have to persue the actual text (I think it was to prevent another TS company - like Marriott - having ownership - but not sure as it was in technical real estate terms)

It would be nice if posts like these were more specific as not to send off into an unnecessary tangent...

 

[jarta]

DavidnRobin, ... From a lawyer to a Scientist: LLC = Limited Liability Corporation. The question is not whether a corporation can own a timeshare property. Of course it can.

The questions are whether a corporation can be a member of SVN - and I don't know the answer to that one - and who can make a reservation on behalf of the corporate owner. But, my timeshares are owned by me. ... eom

 

[DavidnRobin]

jarta - (thanks - i know what LLC stands for but I do not know what it means to be a LLC) as I was reading the CCRs for the WKORV and WPORV properties - there was some text around this (I didn't pay attention since it didn't pertain to me) - and it is certainly a non-issue, but it would be interesting to understand what SVO/SVN was attempting to prevent.

The previous WSJ owners (the family vacation LLC) were members of SVN - they of course never used SVN because they bought WSJ to stay in STJ, but that must not be what you meant since all owners of M resorts (and non-resale V resorts when not retro'd or added to SVN) are also SVN members.

 

[clsmit]

Trusts can own timeshares -- our most recent salesmanager promoted doing that so that if you are 3* the trust owns that, so the kids can keep the 3* level in the trust. As if 3* will still exist in 50 years...

The DH comments that by them there will be a 9*. (Which he will want, I might add.)

 

[thomasro3]

Trusts can own timeshares -- our most recent salesmanager promoted doing that so that if you are 3* the trust owns that, so the kids can keep the 3* level in the trust. As if 3* will still exist in 50 years...

The DH comments that by them there will be a 9*. (Which he will want, I might add.)

Something to think about... My wealthy uncle once told me that he used to save a fortune in taxes when purchasing apartment buildings in San Francisco if the following applied. If the apartment, house or building was owned by a corporation and he purchased that corporation. The apartment, house or building did not technically change hands/ownership and therefore did not get reassessed for taxes. Though in functionally it is a new owner.

If we apply the same logic to a Timeshare owned by a corporation and not a trust then that would also solve the resale issue? Have the resale person transfer ownership to a corporation, and then purchase the corporation so that the property stays in SVN.

I'm not a lawyer or real-estate guru...this is sort of a "Rich Dad, Poor Dad" scenario. My uncle still owns a bank so; I'll assume the info is good and that it worked a sometime, though laws may have been changed since to avoid this sort of shelter.

-Thomas

 

[ttt]

LLC=Company, Not Corporation

DavidnRobin, ... From a lawyer to a Scientist: LLC = Limited Liability Corporation. The question is not whether a corporation can own a timeshare property. Of course it can.

The questions are whether a corporation can be a member of SVN - and I don't know the answer to that one - and who can make a reservation on behalf of the corporate owner. But, my timeshares are owned by me. ... eom

LLC is Limited Liability COMPANY.
LLC's and Corporations can own timeshares...

 

[Troopers]

Something to think about... My wealthy uncle once told me that he used to save a fortune in taxes when purchasing apartment buildings in San Francisco if the following applied. If the apartment, house or building was owned by a corporation and he purchased that corporation. The apartment, house or building did not technically change hands/ownership and therefore did not get reassessed for taxes. Though in functionally it is a new owner.

If we apply the same logic to a Timeshare owned by a corporation and not a trust then that would also solve the resale issue? Have the resale person transfer ownership to a corporation, and then purchase the corporation so that the property stays in SVN.

I'm not a lawyer or real-estate guru...this is sort of a "Rich Dad, Poor Dad" scenario. My uncle still owns a bank so; I'll assume the info is good and that it worked a sometime, though laws may have been changed since to avoid this sort of shelter.

-Thomas

My wealthy uncle told me the same thing too!!!!! He owns a number of apartments, warehouses and strip malls.

 

[jarta]

That loophole was closed long ago in Illinois. Assignments of shares of stock and assignments of beneficial interests in real property must get reported now before the deed can be recorded. If there is no deed, a tax still must be paid. Woe to him who cheats. It was cute while it lasted, though. ... eom

 

[Garnet]

Something to think about... My wealthy uncle once told me that he used to save a fortune in taxes when purchasing apartment buildings in San Francisco if the following applied. If the apartment, house or building was owned by a corporation and he purchased that corporation. The apartment, house or building did not technically change hands/ownership and therefore did not get reassessed for taxes. Though in functionally it is a new owner.

If we apply the same logic to a Timeshare owned by a corporation and not a trust then that would also solve the resale issue?........

Yes...likely true for apartments....but, read all the previous posts on getting various counties to reassess (lower) taxes based on resale price. If you get them to lower...please let us all in on it! The counties do a weird averaging of sales...picking numbers out of a hat for the resale TS's. I would love to have lower RE taxes on my resales.

Also...what ever happened to piercing corporate veil? Why have a TS in a LLC...need officers...and, if the bucks are big enough, officers are it.

 

[Garnet]

Sorry for my assumptions I should have asked WHY first.... When I put in my first post, I was recalling all those discussions on "if I put the TS in XYZ, then I'm not REALLY responsible for the mf's, right?" and how frustrating that would be for a board of directors (particularly a small owner run board) to deal with any issues.

 

[Dave H]

Sorry for my assumptions I should have asked WHY first.... When I put in my first post, I was recalling all those discussions on "if I put the TS in XYZ, then I'm not REALLY responsible for the mf's, right?" and how frustrating that would be for a board of directors (particularly a small owner run board) to deal with any issues.

You should ask a lawyer that deals in Corporations and LLC's. I know in Florida, if you allow a corporation of LLC to disolve for failure to pay the annual fees, then all the liability transfers to the officers or members.... I would check before doing that.