Can a LLC purchase a time share? [merged]

[Jason245]

Your response doesn't make any sense - an LLC whose deed has been rejected will NOT pay any maintenance fees, because the deed will not be registered to them, so they will never even be billed for maintenance fees.

"Just sue them," is a simplistic answer that does not address the bigger issues of this situation - like the HOA's fiduciary obligation to protect the resort from scammers.

The hoa does not govern property transfers. If the deed is transfered legally and the hoa on their end refuses to acknowledge the transfer they are in essence going against property transfer laws. That being said, hoa can have in their bylaws that they have some ROFR on unit transfers (but then they have to buy unit).

Scenario : I transfer my ts to a llc. It gets deeded by govt and then I send deed to hoa. Hoa refuses to transfer out of my name. I get mf bill, forward to llc who owns property and pays. They then rent their week to someone. What is hoa going to do? Refuse the tenant?

By same token, llc goes viking, what is hoa going to do? Sue me if I don't own the property?

Llc are legally allowed to own property, just cause an hoa doesn't like it doesn't mean that they can stop it.. that being said I am not a supporter of this legal means of getting rid of a timeshare. I would prefer that either:

Hoa step up (independent resorts ) and provide a better option.

Developers step up and provide options if they manage resorts.

That a more effective market get created for these products.

That the model switch to cash only (no financing ) on buy in, fixed 3 percent comission to selling agent and no incentives of any kind to attend a 3 hour sales presentation and that the recision period e extended to 10 days after they leave the resort(no buy on day 1 and only have a day or 2 to figure out it is a bad deal cause you were on vacation ).

As of now.. the only honest market that exists is limited to a few real estate agents and tug (which probably facilitates the movement of more timeshares in a year than companies like Westgate (pure volume numbers).

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[Jason245]

Pretty much sums it up, yes. I surely wouldn't pursue that strategy. I'd likely give up right after they rejected the transfer. On a side note, I don't have an LLC, but I recently had two transfers rejected because I have too many ownerships within that system. So I just gave up rather than sue.

As I said before. It depends on if the llc wants to spend money to sue... if they have the cash and desire they will more likely than not succeed.

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[DeniseM]

Scenario : I transfer my ts to a llc. It gets deeded by govt and then I send deed to hoa. Hoa refuses to transfer out of my name. I get mf bill, forward to llc who owns property and pays. They then rent their week to someone. What is hoa going to do? Refuse the tenant?

Again - your pat answers clearly display that you have little understanding of how timesharing works.

Please tell me how the LLC is going to get a guest confirmation for their renter, if the resort will not recognize them as the owner? To transfer a reservation to a renter, you have to be recognized as the owner by the resort, who issues the guest confirmation.

*And yes, if a renter shows up without an official reservation issued by the resort, they WILL be turned away.

*It's ridiculous to think that the original owner will be happy to play along for ever - they will want their name off the deed, and they will know that the resort has refused to transfer it to the LLC.

By same token, llc goes viking, what is hoa going to do? Sue me if I don't own the property?

This makes no sense at all - they don't have to sue you - they can simply ignore you, because in their records, the original owner is still the owner of record.

 

[Jason245]

Again - your pat answers clearly display that you have little understanding of how timesharing works.

Please tell me how the LLC is going to get a guest confirmation for their renter, if they resort will not recognize them as the owner? To transfer a reservation to a renter, you have to be recognized as the owner by the resort, who issues the guest confirmation.

*And yes, if a renter shows up without an official reservation issued by the resort, they WILL be turned away.

*It's ridiculous to think that the original owner will be happy to play along for ever - they will want their name off the deed, and they will know that the resort has refused to transfer it to the LLC.



This makes no sense at all - they don't have to sue you - they can simply ignore you, because in their records, the original owner is still the owner of record.

How would they stand in court and attempt to collect? Would be interesting. .

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[DeniseM]

No mystery there: If the owner of record doesn't pay the maintenance fee, they will be turned over to collections, and eventually the resort will foreclose on them.

 

[Jason245]

No mystery there: If the owner of record doesn't pay the maintenance fee, they will be turned over to collections, and eventually the resort will foreclose on them.

For close on unit yes..hurt owners credit report.. Maybe not depending on state law.

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[grupp]

My LLC owns 18 timeshares me have never had any issues transferring ownership. I usually have to provide a copy of my operating agreement and occasionally a corporate resolution approving the purchase.

 

[hammerhammer]

So, is the OP, hammerhammer, a "legitimate LCC," when his stated purpose is to transfer a deed to a LLC so he can abandon it at will?

At the time of transfer 100%. I have a couple legitimate LLC sitting idle just to become more legit with time. It is always nice for a LLC to have some years under its belt when moving forward with a business.

 

[hammerhammer]

So, what you are really saying is that as long as he lies about his true intentions, his deed would most likely pass the criteria that the BOD has set up.

But if he tells the truth, (that he wants to be able to abandon the deed at will) it probably won't.

Correct?

I would not be lying at all. The business bought it and the business runs it. Bad business terms make a LLC go bad.

If I purchased a TS in my LLC my intent would be to use it.

If a hurricane hit the LLC could make a business decision to bail out. I am not planning on a hurricane destroying my resort.

 

[hammerhammer]

They would have to lie.

Therefore, they are not a "bona fide LLC," either.

Wow that is strong

 

[hammerhammer]

Now I know you can not believe the sales people at a resort, but I just got back from Morritts on Cayman and sat through the presentation. I wanted to get the actual contract and read it.

I have learned so much on this site and thanks to all the wonderful people that are here helping others.

The contract was very neat to study and some of the lines in it 180 degrees of what the sales person claimed, it was just a joke.

But they will put the TS in a LLC and several other guest I talked to owned the units in their LLC's in fact most people with more than one week owned them in a LLC just for their TS. And it is for the same reasons and concerns I have. One guy owned 14 weeks and said if a hurricane hit he does not want a resort to make him go bankrupt.

Thanks for everyones help on here. If a person is to own several TS I believe it would be financially prudent to have them in LLC so they can not wipe you out because of a event.

I can not wait to go back their next year. I love the place so much I may want to do several years in a row there!!

 

[theo]

<snip> Thanks for everyones help on here. If a person is to own several TS I believe it would be financially prudent to have them in LLC so they can not wipe you out because of a event. <snip>

I have nothing else to contribute to this thread, but I do understand your stated logic.

That being said however, just understand clearly that (aside from your recent Caribbean observations) there are indeed resorts here in the U.S. that will (...whether right or wrong has already been discussed above, ad nauseam...) routinely fight you tooth and nail over any attempt to place timeshare ownership(s) into a LLC.

This strong resistance to LLC ownership might very well be much lower in the Caribbean, where they surely already know that (unlike resorts here in the U.S.) they would have precious little (if any) collection leverage over a U.S. citizen, regardless of whether a Caribbean timeshare interest is in individual name(s) or in LLC.