Multiple people on deed - any risk to others?

[Sandi Bo]

I am thinking of adding a relative to one of our Wyndham deeds. They use the properties frequently for short stays and it would save on guest confirmation fees.

Any risk to others on the deed? Say you have 5 people on the deed and one goes bankrupt? Does the joint ownership allow anyone to go after the other 4 for anything?

Thoughts? I am running this by a lawyer tomorrow, would appreciate TUG opinions as well.

Thanks!

 

[hjtug]

Can you put them on the your account, without putting them on the deed, and still eliminate the need for guest certificates?

 

[Sandi Bo]

I'm pretty sure they have to be on a deed (just one of the deeds) in order to be added to the account.

 

[tschwa2]

I wouldn't re-deed anything to someone I think is likely to go bankrupt.

That being said are you close enough to that person that if something like that is imminent they would let you know in time to re-deed and get their name off the unit?

 

[CruiseGuy]

I would think that if their name is on the deed, the deed could become part of the bankruptcy. It would have to be claimed as an asset, and the court could potentially order it sold with any funds raised going to the creditors. I don't think that they could come after the other co-owners for anything else though. I don't know this for sure, but I agree that I wouldn't want the hassle of putting someone on a deed that I thought might go bankrupt, or someone I didn't absolutely trust just due to the problems they could potentially cause, and liabilities they might be able to stick me with.

 

[vacationtime1]

I don't see bankruptcy as an issue. If a 20% owner went bankrupt, the 20% interest would be part of the bankruptcy estate, but the bankruptcy trustee would be hard pressed to sell a 20% interest in a timeshare (would any of you experienced TS people buy a 20% interest with four strangers?). The trustee would abandon the asset back to the bankrupt.

I would be more worried about a divorce. An angry ex-spouse on title (after the divorce court puts the ex on title) could wreak havoc on orderly usage.

Although any of this is highly unlikely, imho, it is still too much risk for minimal advantage.

 

[Ty1on]

I don't see bankruptcy as an issue. If a 20% owner went bankrupt, the 20% interest would be part of the bankruptcy estate, but the bankruptcy trustee would be hard pressed to sell a 20% interest in a timeshare (would any of you experienced TS people buy a 20% interest with four strangers?). The trustee would abandon the asset back to the bankrupt.

I would be more worried about a divorce. An angry ex-spouse on title (after the divorce court puts the ex on title) could wreak havoc on orderly usage.

Although any of this is highly unlikely, imho, it is still too much risk for minimal advantage.

In cases like this, trustee can partition and sell the deed, which means a judge can force the sale of a property as a whole, with 20% of the proceeds going to the bankruptcy and the other 80% remitted to the other former owners.

 

[vacationtime1]

In cases like this, trustee can partition and sell the deed, which means a judge can force the sale of a property as a whole, with 20% of the proceeds going to the bankruptcy and the other 80% remitted to the other former owners.

Theoretically maybe, but as a practical matter, no.

Assume a $25,000 timeshare -- and I doubt OP would be giving 20% of that one away. But even if so, a bankruptcy trustee is not going to file a partition acton (probably in another jurisdiction) to maybe get $5,000 of additional money in the bankruptcy estate.

Even fully-owned timeshares are routinely abandoned in bankruptcy proceedings.

 

[55plus]

It's going to cost you $299 to get a person on your Wyndham membership account, plus the cost to add that person to the deed. I added family at a time I purchased a resell so it really didn't cost me anything to add them because the transfer fee had to be paid, and it was paid by the seller.

To make it benefit you, buy a resell where the seller is willing to pay the transfer fee. You get more points and it doesn't cost you the fee...

 

[uscav8r]

I am thinking of adding a relative to one of our Wyndham deeds. They use the properties frequently for short stays and it would save on guest confirmation fees.



Any risk to others on the deed? Say you have 5 people on the deed and one goes bankrupt? Does the joint ownership allow anyone to go after the other 4 for anything?



Thoughts? I am running this by a lawyer tomorrow, would appreciate TUG opinions as well.



Thanks!

It's going to cost you $299 to get a person on your Wyndham membership account, plus the cost to add that person to the deed. I added family at a time I purchased a resell so it really didn't cost me anything to add them because the transfer fee had to be paid, and it was paid by the seller.



To make it benefit you, buy a resell where the seller is willing to pay the transfer fee. You get more points and it doesn't cost you the fee...

To piggyback on Jim's suggestion, an additional (small) contract could just have you and this new person as owners. That way no other persons need to bother with a forced sale (if it ever becomes an issue).

I read the OP bankruptcy question as pertaining to any one of the owners, not just the potential newcomer.


Sent from my iPhone using Tapatalk

 

[vacationhopeful]

<snip>
I read the OP bankruptcy question as pertaining to any one of the owners, not just the potential newcomer.

Good thinking ... crap happens ... car accidents, illness, teenagers, divorices, criminal acts, etc.

 

[VegasBella]

Good thinking ... crap happens ... car accidents, illness, teenagers, divorices, criminal acts, etc.

Teenagers
Lol

 

[bogey21]

My preference was always only one name on deed. IMO being easier to dispose of Week (through whatever means) offset fees for guest certificates, etc.

George

 

[JimMIA]

I think the best way to view multiple owners on an account is that it's essentially a partnership. Anything affecting one of the owners could potentially affect all.

In many cases, there are no issues in those situations, but it's something to be aware of.

 

[Angela5svr]

Set up in trust

Best way to protect is to put into a trust. This is easily done with 100 fee. In my experience it protects everyone. Free use to be $100. Not sure now anyone who says you have to buy to do this is mistaken (Wyndham I mean).