Hilton Transfer Process

[NJDave]

Anyone familar with the electronic process used by Timeshare Closing Services? Within 2 weeks of the contract, I received a letter that the closing had taken place for our Hilton unit, the deed recorded electronically (a copy of the deed was attached) but that the last step is for Hilton to acknowlege the transfer. I did not receive any confirmation that the transaction passed Hilton's ROFR. I checked on line in the Orange County records and saw the deed recorded in our names. It would seem strange to me that Hilton could still buy the unit. What confirmation should I receive regarding Hilton's ROFR? I emailed the escrow agent earlier in the week but did not receive a response.

 

[Talent312]

... I did not receive any confirmation that the transaction passed Hilton's ROFR. I checked online in the Orange County records and saw the deed recorded in our names. It would seem strange to me that Hilton could still buy the unit. What confirmation should I receive regarding Hilton's ROFR?...

Under its ROFR, Hilton has a period of time (usually 30 days) after written notice of a sale in which to exercise the option or to waive it. They have a form that they want you to use for this in which a waiver is requested. The notice/request should be given prior to closing, as absent a waiver, the ROFR is a cloud on the title and at worst, could result in lawsuits all around.

We purposely set our closing more than 30 days out so that we would have Hilton's written notice of election or waiver in hand B4-hand. They gave us a waiver (recordable at our option) about 21 days after we mailed the request.

I suggest that you ask them, "Where is the 'Waiver?'" They may say, "What are you talking about?" But until you see one, your title is unsettled.

 

[NJDave]

Thanks for the advice. I will request a copy of Hilton's waiver.

 

[Talent312]

Can you imagine the mess it will be if Hilton decides to exercise its option at this point, post closing?

Hilton would likely pay you what you paid and ask you to sign a deed directly to Hilton, or could do this indirectly thru the seller, but whatever Hilton does, the seller is not off the hook. If he gave you a warranty deed, he warranted that the title was free of this encumbrance upon the title, so you could sue him for breach of warranty and seek damages for any economic losses. The seller, in turn, could cross-claim against TCS for causing this mess.

The sums involved could be small enuff to make lawsuits impractical; however, its illustrative of what can happen when dealing with a R/E closing service not well versed in dealing with certain properties. TCS's liability for losses suffered as a result of its ineptitude could, howver, be leverage for recovering out-of-pocket expenses.

 

[NJDave]

I'll keep you posted on what happens. This could effect other Tuggers that use Timeshare Closing Services. How would one go about assuring that this does not happen? When I bought my Marriotts, I did not receive proof of ROFR but then I thought that Marriott did not have that right for my resort anyway (which I still think is true based on my reading of the prospectus). It was only the speed of which this closing occured that made me raise the question. I was looking to find out if Hilton had waived the right and then found out that the deal had closed and the deed recorded.

 

[Seth Nock]

Which Marriott do you own. I will let you know if they have Right of First Refusal.

 

[NJDave]

Which Marriott do you own. I will let you know if they have Right of First Refusal.

Thanks. It is Cypress Harbour. The closing company told me that they submitted it to Marriott but I never received any proof.

 

[NJDave]

I'll keep you posted on what happens.

I received the waiver today. It was dated over a week prior to the closing.

I was somewhat surprised that it cleared since the price was below $1 per point.

 

[Talent312]

I received the waiver today. It was dated over a week prior to the closing. I was somewhat surprised that it cleared since the price was below $1 per point.

Congrats on getting that doc.
But let me guess... Yours was not a Platinum unit.
Hilton tends to let Gold, Silver, etc., go thru.

 

[NJDave]

Congrats on getting that doc.
But let me guess... Yours was not a Platinum unit.
Hilton tends to let Gold, Silver, etc., go thru.

Correct. It is a Gold.

 

[Seth Nock]

Thanks. It is Cypress Harbour. The closing company told me that they submitted it to Marriott but I never received any proof.

Cypress Harbour does have right of first refusal.

 

[topdog]

Is there a fee for Hilton transfer?

I'm viewing an HVAC for sale ad on ebay which refers to a $250 resort transfer fee. Is that Hilton's charge for the transfer?

Jim

 

[Talent312]

I'm viewing an HVAC for sale ad on ebay which refers to a $250 resort transfer fee. Is that Hilton's charge for the transfer? (empahsis added)

I'd be very surprised if Hilton would transfer a "heating, ventilating and air conditioning" (HVAC) system.

However, they do charge a fee of $299 to transfer a HGVC membership (which requires a conveyance of the underlying TS unit) -- Page 147, Member's Guide (2009)

 

[topdog]

Oops. Thanks.