Maintenance Fee Question on a Transfer

[Sapper]

I am in the process of purchasing an HGVC Elara deed. The closing document states I become responsible for the 2025 maintenance fees. It also states the closing will occur on or before 30 Dec 2024. Seeing as we have not yet begun the closing on 9 December, I am guessing the closing happening by the 30th is unrealistic. I am also guessing HGVC will not allow a deed transfer to happen when maintenance fees become past due (Ie, 1 Jan 2025). While I am 100% on board with paying the maintenance fees after the transfer, I have a hard time with the idea of paying for them prior to a transfer as the seller could decline the transfer after we pay the maintenance fees and then we are out the $$$$.

This cannot be the first time this situation has happened. Might anyone have experience with a similar situation?

* Yes, I have reached out to the seller with my concern and am waiting to hear back. However, while I wait, I figured it would be a good idea to tap into the phenomenal resource that TUG is. Thank you in advance!

 

[travelhacker]

If you are using a closing company, the seller would pay the 2025 fees and you would add the 2025 fees to what you are paying for the purchase. You would get the 2025 usage, and the closing company would wait until everything settles before disbursing funds.

Here's an example:
I recently closed on a Lagunamar week. I was supposed to get 2024 usage, but the seller used it, and decided to use 2025 as well. Fortunately, they had already paid for the 2024 and 2025 dues so there was no issue with transferring.

Since the agreement stipulated that I was to pay 2024 dues and receive 2024 usage, the closing company is reducing the seller's proceeds by the amount of the 2024 dues and sending that back to me.

If you aren't using a closing company, then you'd just need to work that out with the seller individually.

 

[HuskerATL]

It is very common that the seller pays the next year's MFs and the buyer reimburses them through the closing process. Make sure to get an estoppel so that you can make sure the week info, points, ownership, and fees are correct.

 

[Sapper]

@travelhacker @HuskerATL , Thank you. I am using a closing company. They responded this morning. They stated, ”We will make every effort to have the transfer complete as soon as possible. Once the transfer is complete, Hilton will bill you for the 2025 maintenance fees.”

As close as we are to 2025, and not having started the transfer, their response does not give me a warm fuzzy feeling.

 

[Talent312]

When we closed a sale near the end of the year, the closing agency (LT Transfers) wanted to collect MF's from the buyer as they were on the estoppel, but at my (seller) request, HGV told the agency they'd accept payment from the buyer via CC outside of closing. He sent in payment after the deed had been recorded.

 

[HuskerATL]

The ones that we have done, the fee were all handled through closing

 

[Tamaradarann]

@travelhacker @HuskerATL , Thank you. I am using a closing company. They responded this morning. They stated, ”We will make every effort to have the transfer complete as soon as possible. Once the transfer is complete, Hilton will bill you for the 2025 maintenance fees.”

As close as we are to 2025, and not having started the transfer, their response does not give me a warm fuzzy feeling.

Hilton perhaps will bill you with a penalty and interest fees. The owner should pay the maintenance like they should. If they want to raise the price to compensate that is fine.

 

[SmithOp]

I closed in December using a broker and escrow, it was Hawaii deed. I had to put the next year's fee into escrow and it was paid during closing. I was told Hilton required it. I was billed later by Hilton for the other junk fees, activation etc. so it didn't make a lot of sense but that's how they roll.

 

[Talent312]

Hilton perhaps will bill you with a penalty and interest fees. The owner should pay the maintenance like they should. If they want to raise the price to compensate that is fine.

There's a 30-60 day grace period (look at the statement).
I always pay "late." Close to the end, they'll send a firm warning.

 

[Tamaradarann]

There's a 30-60 day grace period (look at the statement).
I always pay "late." Close to the end, they'll send a firm warning.

I agree that there is a grace period, however, since transfers take some time and the owner wants to sell the unit all fees should be paid ON TIME and not put the buyer(the new owner) in a position that they don't want to be in and shouldn't have to deal with. Since the new owner will have use of the 2025 points the selling price could reflect that if the 2 parties agree.

When I bought some timeshares resale15 years or so ago I received some unused points along with the ownership. I didn't have to pay any maintenance for them it was a perk for buying the unit from the owner.

 

[dblezard]

In my recent resale purchase, I was required to pay the estimated maintenance fee for 2025 to the title company who then paid HGV. We got a check back for the difference as they (probably intentionally) estimated high.

 

[Sapper]

The title company did not want me to cough up the 2025 maintenance fees. They just stated they will do their best to have the transfer done by January 1st. My money (quite literally) is that I will be relying on the grace period @Talent312 spoke of above.