Costs for HGVC member to purchase from another member

[jasperdog]

If transfer of deed is done via a quitclaim deed, what are the costs for another HGV member to buy my Parc Soleil timeshare? Please define all the terms you use. If transfer occurs in 2021, does new owner get point allotment immediately, or on Jan 1? I assume they get any remaining points I have as well? I have a 1BR platinum week. Is Hilton likely to act on ROFL at $700?

 

[dayooper]

If transfer of deed is done via a quitclaim deed, what are the costs for another HGV member to buy my Parc Soleil timeshare? Please define all the terms you use.

I just closed on a deed this summer and used LT Transfers to put it in my name. It was ~$1500, most of it going to HGVC. Here’s the breakdown:

HGVC fees before/at closing

• Estoppel fee and prep -$79 This is the process by which HGVC tells you the particulars of a deed (season, room size, points, how many points are left for the present year and the next 2 years)
• HGVC Transfer Fee - $429 The fee HGVC charges to put it in the new owners name

LT Transfers (deed prep) (This varies by what company the new owner chooses)

• Deed prep - $175 The cost LT Transfers charges to write the new deed and do all of the work sending the nessacary documents where they need to go
• Escrow - $100 The cost LT Transfers charges to hold the money until the transfer is complete.
• Recording and filing fee - Mine was $63.75 These are the county filing fees to register the deed in the new owners name with the county. This will very by whatever county the property is located
• Postage $15 - The fee to mail all of the documents where they need to go.

HGVC fees the new owner will be charged once the deed is recognized by HGVC

• Enrollment Fee -$617 This is the fee HGVC charges to enroll the deed back into the club. It’s mandatory unless it’s at a few affiliate resorts. Parc Solei is mandatory.
• Club Dues - $186 (or more if they are charged next years)

If transfer occurs in 2021, does new owner get point allotment immediately, or on Jan 1? I assume they get any remaining points I have as well?

The new owner will have access as soon as it’s put into their name. It took about 2 months from signing the purchase agreement for the points to show up in my account. That was blazingly fast. My last one was over 3 months. The new owners will get this years points if you write it into the purchase agreement. I would save the points so they are assured they will get the points. If it’s in the agreement and the closing goes past the new year, you could be held accountable.

I have a 1BR platinum week. Is Hilton likely to act on ROFL at $700?

From what I understand, HGVC is not exercising ROFR right now. That may change, but there have been some smoking great deals reported lately (including mine). That should pass. They only took 2 days to decide whether to let my new deed go and prep the estoppel.

 

[jasperdog]

As I explained, the buyer already owns another HGVC property. So I don't think the Club Dues or the Enrollment Fee would apply, would they?

 

[frank808]

They would pay for all the other fees mentioned above except for the Club Dues. They have already paid club dues for their other unit or units.

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[PigsDad]

The enrollment fee is per deed, unfortunately. I have four deeds and have paid that four times.

Kurt

 

[jasperdog]

Thanks so much. One final question. I'm not really worried about having escrow for the funds. I'm assuming I (the seller) would pay for estoppel. But how much of the $275 to LT Transfers can I avoid by using a quitclaim deed? And does tug2.net list a step by step procedure for selling your timeshare without an escrow agent such as LT Transfers?

 

[SmithOp]

Do you really want to take the chance of making a mistake over $275? Let the experts do their job and it will go smoothly with HGV, I’ve used them three times without an issue.


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[PigsDad]

I second @SmithOp's recommendation. If you don't do the escrow, LTT's fees would be $175 which includes the deed prep, ensuring HGV's ROFR process is followed, etc. Seems like a bargain to me.

Kurt

 

[jasperdog]

Considering I'm only asking $700 for the property, $275 is quite a lot!

 

[GT75]

Considering I'm only asking $700 for the property, $275 is quite a lot!

Since you have a platinum season, you could have the buyer pay the closing cost. Normally, that is how it is done unless you have a deed which is hard to move.

 

[jasperdog]

Who pays the Estoppel fee and how do I get started?

 

[jasperdog]

I just closed on a deed this summer and used LT Transfers to put it in my name. It was ~$1500, most of it going to HGVC. Here’s the breakdown:

HGVC fees before/at closing

• Estoppel fee and prep -$79 This is the process by which HGVC tells you the particulars of a deed (season, room size, points, how many points are left for the present year and the next 2 years)
• HGVC Transfer Fee - $429 The fee HGVC charges to put it in the new owners name

LT Transfers (deed prep) (This varies by what company the new owner chooses)

• Deed prep - $175 The cost LT Transfers charges to write the new deed and do all of the work sending the nessacary documents where they need to go
• Escrow - $100 The cost LT Transfers charges to hold the money until the transfer is complete.
• Recording and filing fee - Mine was $63.75 These are the county filing fees to register the deed in the new owners name with the county. This will very by whatever county the property is located
• Postage $15 - The fee to mail all of the documents where they need to go.

HGVC fees the new owner will be charged once the deed is recognized by HGVC

• Enrollment Fee -$617 This is the fee HGVC charges to enroll the deed back into the club. It’s mandatory unless it’s at a few affiliate resorts. Parc Solei is mandatory.
• Club Dues - $186 (or more if they are charged next years)

The new owner will have access as soon as it’s put into their name. It took about 2 months from signing the purchase agreement for the points to show up in my account. That was blazingly fast. My last one was over 3 months. The new owners will get this years points if you write it into the purchase agreement. I would save the points so they are assured they will get the points. If it’s in the agreement and the closing goes past the new year, you could be held accountable.



From what I understand, HGVC is not exercising ROFR right now. That may change, but there have been some smoking great deals reported lately (including mine). That should pass. They only took 2 days to decide whether to let my new deed go and prep the estoppel.

It's getting late in the year. If transfer is not complete by 1/1 and I have to pay the maintenance fee and taxes (MFT), and then the transfer is completed in January, then does the new owner ALSO have to pay MFT after it's transferred?

If I pay MFT (and don't use the points), would new owner still get the 4800 points for 2022?

It seems like I need to have contingencies in the sales contract.

 

[PigsDad]

It's getting late in the year. If transfer is not complete by 1/1 and I have to pay the maintenance fee and taxes (MFT), and then the transfer is completed in January, then does the new owner ALSO have to pay MFT after it's transferred?

If I pay MFT (and don't use the points), would new owner still get the 4800 points for 2022?

It seems like I need to have contingencies in the sales contract.

With that deed, there will be a maintenance fee every year, and there will be 4800 points allocated every year. That doesn't change just because it is being sold. You just need to make sure you obtain as estoppel and that will declare what points (if any) are left for 2021 and 2022 (remember, you can borrow points from a future year) on that deed. Then it is usually customary to reimburse the seller for the unused points based on the maintenance fee. So, for example, 2400 points are left for 2021, the buyer would reimburse 1/2 of the 2021 MF at closing. If the seller paid the 2022 MF and didn't use any of its points, the buyer would reimburse the 2022 MF at closing.

Of course, all of this is negotiable but hope this makes sense. BTW, the 2022 MFs are not due until at least Jan. 31, 2022, so you have some wiggle room for closing.

Kurt

 

[jasperdog]

That makes sense, the points go to whoever pays the maint fee. Glad there's some wiggle room also. Thanks, Kurt.