Closing questions/concerns

[mickdg]

I have received paperwork for closing of an IW 120 point resale.

The agency is fidelity real estate agency - timeshare division.

I have several concerns, not least of which are the big disclaimers about "other documents should be reviewed in a timeshare purchase including...covenants and restrictions; assoc rules articles and bylaws; current years operating and reserve budgets; and any other rules and regs affecting use of timeshare plan accomodations...".

not sure how much of those apply to IW, but I certainly have no similar docs from agency, and would like to know if I could ask IW for such docs...how happy are they to accomodate such requests from *prosepctive* resale buyers? And what specifically to ask for?

Second, in email exchange, I was told clsoign company would be Timeshare Title Inc, for a fee of 250.

In the paperwork I have, it says:

A full closing *is* available for this purchase with an estimate cost of N/A.
A deed only closing OR membership transfer for this putrchase has an estiamted cost of 100.

They want 1k (of 2k total for 120 pts) held in escrow, and it says closing and title agent is fidelity real estate agency!

So, it looks to me like it is a "simpler" type clsoing being offered here, for cheaper. However, this lack of a 3rd party/arm's length closing company concerns me.

Anyone have any expererience with this type of closing?

It's only 2k but has me wondering if I should run this through a lawyer.

Thanks in advance,
Michael.

PS Is it bad form/forbidden to upload or share more contract details?

 

[presley]

I see no reason why they wouldn't let you review all the documents. As far as using a lawyer, if it is worth it to you for your own piece of mind, do it. However, I haven't heard anything negative regarding closing with Fidelity.

 

[Carolinian]

Is this just a membership or is it a deeded interest? A deeded interest should involve someone competent to prepare deeds in the jurisdiction where the timeshare is located. Otherwise they are likely to use a form deed that may work fine in the jurisdiction where the closing company is located but may not be valid to pass title where the timeshare is located. I see that problem a lot with these out of state timeshare closing companies handling closings in North Carolina, for example. The worst thing is the buyer may think his closing went fine and not know that he has a ticking time bomb with an invalid deed recorded in his name.

 

[Dave H]

It sounds like a membership that is being closed and they used to do those in their own office. I know deeded work they refer out. The fact that no title insurance is available is also leading me to believe it is a true membershup week.

The buyer is always free to have a 3rd party escrow agent, I know we do them on a regular basis for $100 which is cheaper than others and we have a true audited escrow account that is audited by both my underwriters and the state.

If the buyer has concerns, then the best practicve is to use an escrow company to hold those funds until they complete the transfer.


As far as a review of the documents, yes, you have the right to ask to see them, Fidelity may already have a set that they can send you.
Dave

 

[mickdg]

This is just a membership.

I have opted for 3rd party escrow...a little more $$$ but peace of mind.

I asked for and received the "other"documents which include
- articles of incorporation for the intrawest resort club
- by laws of the IWC
- affiliation agreement with II
- original members purchase and membership agreement (from 1997)
- prospectus of IW resort ownership corp for IW resort club
- 4th amended and restated master declarationfor IW resort club

It also includes a points table from 1997 which, cross-referencing to
http://www.tug2.net/advice/ClubIntrawestInfo.htm
looks to be very similar, so perhaps that has not changed much.

I called IW and told them all I wanted was their points table. They were very unhelpful and opaque, wanting me to travel 8 hrs, stay a weekend, and attend a pitch at Tremblant to get the details. Funny they expected me to provide all my information for "free" but were unwilling to reciprocate. That left a bad taste...

Anyway, I wouldn't mind getting a recent club guide in pdf if anyone has those. You can PM me. HGVC seems a lot more transparent...their guide and point costs are easily available online.

Thanks for all the feedback and help...