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Dealing with PCCs. What is gained by holding balance due until closing?

MOXJO7282

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Sometimes these PCCs have these great deals that are hard to ignore. They also always ask for full payment upfront which I oppose unless I'm very comfortable with the seller.

My question is does holding the balance, let's say 75%, until closing really give them incentive to stay on top on things or it is just as likely to be a problem if these lesser quality guys are involved?

What happens after closing that they could still screw up? Sending to Resort to have deed recorded? When does the local muncipality record the deed? After closing? That seems to be where alot of the screw ups are made.
 

DeniseM

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After the buyer/seller sign the Docs, the closing company prepares a new deed and sends it to the County Recorder's Office. The County Recorder's Office records it, and sends a stamped copy back to the closing company. Then the Closing company sends a copy to you, and to the resort, for change of ownership.
 

MOXJO7282

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After the buyer/seller sign the Docs, the closing company prepares a new deed and sends it to the County Recorder's Office. The County Recorder's Office records it, and sends a stamped copy back to the closing company. Then the Closing company sends a copy to you, and to the resort, for change of ownership.

Thank you Denise. So at what point does payment generally get rendered when balance is due at closing? When new owner receives copy of stamped deed from closing co?

If that is the point of payment it seems to mitigate alot of the risk if you pay then You can confirm info is right on deed and county recorder has stamped and entered into the records. If something isn't kosher no balance payment is rendered.

At that point all the closing co can screw up is sending to resort which the new buyer could probably do directly if closing co is totally slow.
 

aliikai2

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I don't think you are going to get them to agree to these terms

Put yourself in their shoes, you do all the work to close and unit and somebody then decides that for some reason they don't want to pay? I wouldn't do that for a buyer, I don't think you would either.

Just a thought, Greg

Sometimes these PCCs have these great deals that are hard to ignore. They also always ask for full payment upfront which I oppose unless I'm very comfortable with the seller.

My question is does holding the balance, let's say 75%, until closing really give them incentive to stay on top on things or it is just as likely to be a problem if these lesser quality guys are involved?

What happens after closing that they could still screw up? Sending to Resort to have deed recorded? When does the local muncipality record the deed? After closing? That seems to be where alot of the screw ups are made.
 

ronparise

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As in any real estate deal you generally hire a 3rd party escrow firm that puts the deal together. They get a deed from the seller and they get money from the buyer.....then they close

They cant close until they get the money.

If we were talking about a lot of money Id say negotiate a deal where you send them a deposit now, and wire in the rest of the money at closing

But given the size of the typical timeshare deal...just send the money with your contract

There are enough of us willing to do that (I just sent off payment for an ebay auction I won over the weekend) that they have no reason to negotiate a special kind of deal with you
 

MOXJO7282

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Actually of the 9 that I've purchased resale only the low cost ones asked for full payment. I just checked previous purchase agreement and I paid 25% deposit on most but that was 5 or so years ago.

I'm working on one with a PCC and they didn't clearly specify so I'm seizing on the opening to negotiate a final payment at closing. I'm OK with paying before its sent to county for recording because then they lose control but I want to make sure the deed is correct before its get sent off so I'll pay when i see a correct deed ready to be sent to recording. That is very reasonable in my book because it give them incentive to do things quickly and correctly to get paid. If I walk away they have a 25% deposit and they can resell the unit which would easily be done given you already have 25%.
 

vacationtime1

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The real reason to hold back part of the payment is to give you an opportunity to verify what it is you are purchasing. Before you send in the final payment (which has to be before recordation, as previous posters correctly stated), you want to see the estoppel certificate.

My own practice on cheap traders (which tend to be PCC purchases on eBay) is to send no money but to tell the seller I will fund immediately upon my receipt of an acceptable estoppel. In three cases, I received a good estoppel and funded within 24 hours. In the fourth case, the seller was totally automated, sent me bad paperwork three times, and didn't respond to my very specific emails; I backed out of the deal.
 

ronparise

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I'm OK with paying before its sent to county for recording because then they lose control but I want to make sure the deed is correct before its get sent off so I'll pay when i see a correct deed ready to be sent to recording. .

If its ready to go to the county for recording you have already closed....
 

presley

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If its ready to go to the county for recording you have already closed....

Ron, I don't understand the process. I have a recorded deed dated 8/2/11, but just heard from my resort that the legal description was wrong and that the deed has to be rewritten and recorded again. In other words, I still don't have what I paid for, or apparently what I have a deed for.

Does this sound right to you? :shrug:
 

ronparise

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Ron, I don't understand the process. I have a recorded deed dated 8/2/11, but just heard from my resort that the legal description was wrong and that the deed has to be rewritten and recorded again. In other words, I still don't have what I paid for, or apparently what I have a deed for.

Does this sound right to you? :shrug:

What you have is a pretty piece of paper giving you title to nothing...or maybe someone else's house

The process is or should be a simple one. As denise outlined above...a new deed is prepared and the seller signs it over to you which makes you the owner.....When we real estate agents talk about "closing" Thats it...buyer and seller meet at the closing companies office where the seller signs the deed and the buyer pays for it.

Of course with the property I sell (and timeshares) the buyer and seller and closing agent and the property itself are located miles from one another, so everything is done long distance by email, snail mail, wire transfers etc. This is of course why the timeshare closing companies have to have your money before closing....they cant close without it...

Then this new deed is sent to the county land records office where it is recorded. Now forever and ever anyone who cares to look will know you are the owner of that property

and in the case of a condo (or timeshare) the condo association or HOA is notified, so they can start sending the bills to the new owner and in the case of timeshares accept your reservatioon requests

In your case a mistake was made and has to be corrected before the resort will recognize you as the new owner.....

How can such a thing happen??

Most of the time a new deed is prepared by simply copying the legal description from the sellers deed, which of course was prepared by simply copying the previous owners deed. It is possible and Ive seen this with lot sales in Cape Coral Florida, that a mistake was made 4 owners in the past. To correct it the title company had to follow the chain of ownership back to where the first mistake was first made and have everyone sign corrected deeds. Not to do so would be a "cloud on the title"

anyhow, to answer your question; the process is simple and straightforward, unless it isnt
 
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Ron98GT

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If its ready to go to the county for recording you have already closed....

I agree with Ron, the deal has to be funded & closed before it can be recorded.
 

MOXJO7282

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I backed out of the deal because of the discomfort I felt with this vendor already. I sent an e-mail stating my position and the request for help with securing a 2012 week after deposit which are going quickly and all I got back was a invoice for full payment.

I just didn't want to take a chance and miss out on a 2012 week and if the closing took more than 4 months, not have control to even get the right early 2013 week. This is where resales can be more expensive than meets the eye because if you can't get the right weeks in the first two years so it wasn't worth it to me.
 
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