• The TUGBBS forums are completely free and open to the public and exist as the absolute best place for owners to get help and advice about their timeshares for more than 30 years!

    Join Tens of Thousands of other Owners just like you here to get any and all Timeshare questions answered 24 hours a day!
  • TUG started 30 years ago in October 1993 as a group of regular Timeshare owners just like you!

    Read about our 30th anniversary: Happy 30th Birthday TUG!
  • TUG has a YouTube Channel to produce weekly short informative videos on popular Timeshare topics!

    Free memberships for every 50 subscribers!

    Visit TUG on Youtube!
  • TUG has now saved timeshare owners more than $21,000,000 dollars just by finding us in time to rescind a new Timeshare purchase! A truly incredible milestone!

    Read more here: TUG saves owners more than $21 Million dollars
  • Sign up to get the TUG Newsletter for free!

    60,000+ subscribing owners! A weekly recap of the best Timeshare resort reviews and the most popular topics discussed by owners!
  • Our official "end my sales presentation early" T-shirts are available again! Also come with the option for a free membership extension with purchase to offset the cost!

    All T-shirt options here!
  • A few of the most common links here on the forums for newbies and guests!

No Contract - Free & Clear - Benefit

DenysM

newbie
Joined
Aug 17, 2022
Messages
1
Reaction score
0
Points
1
Resorts Owned
Blue Whale
Benefit of no contract - free & clear!

We purchased a number of time shares at a county tax default auction. Most where purchased for little cash - none financed - so in short they are "free and clear" of any obligations and no mortgage "contract". The only legal document received from the county is the "Tax Deed to Purchaser of Tax Defaulted Property". Beyond that we have not signed any contract from the management company. That appears to me there's no obligation for management or HOA fees. The only fee are the county property taxes.

I'm wondering my perspective is correct or if there are other benefits I'm not seeing.

Any insight would be appreciated.
Thanks in advance,
 

bnoble

TUG Member
Joined
Nov 14, 2006
Messages
11,636
Reaction score
5,371
Points
798
Location
The People's Republic of Ann Arbor
That appears to me there's no obligation for management or HOA fees.
Absolutely no chance. The deed that describes the property you own will have on its face language to the effect that the property is subject to the condominium management plan. Technically, you don't have to pay the fees, but they don't have to let you stay there or do anything else with it if you don't.
 

chapjim

TUG Review Crew: Veteran
TUG Member
Joined
Jan 10, 2010
Messages
6,161
Reaction score
3,804
Points
499
Location
Fairfax County, Virginia
Resorts Owned
Wyndham VIPF & PresRes, HVC/DRI (Gold), Quarter House (4), Resort on Cocoa Beach (2), HGVC Tuscany Village, HGVC South Beach-McAlpin, HGVC Parc Soleil
TNSTAAFL
 

DaveNV

TUG Review Crew: Expert
TUG Member
Joined
Jun 1, 2006
Messages
22,003
Reaction score
29,217
Points
1,348
Location
Mesquite, Nevada
Resorts Owned
Free Agent
I'm wondering my perspective is correct or if there are other benefits I'm not seeing.

Benefits? You may have just stepped into a big financial mess. Owning a deed doesn't mean you have usage rights at the resort - you have to pay maintenance fees for that. Just being tax-defaulted is at the county or state level - what about the resort level? Are there outstanding maintenance fees or special assessments owed? I hope you can afford the maintenance fees on that "number of timeshares" you bought. I also hope what you bought actually has usage value. Otherwise, you may be in for a huge financial surprise.

Every timeshare I ever bought was "free and clear" of a contract. Most were bought for $1 or less. But after recording into my name, the maintenance fees were still due and payable every year. Not having a contract isn't anything special. I hope you understood that before you bought this "number of timeshares."

Dave
 

geist1223

TUG Member
Joined
May 20, 2015
Messages
5,974
Reaction score
5,728
Points
499
Location
Salem Oregon
Resorts Owned
Worldmark 97,000 Credits
DRI Cabo Azul 50,500
Royal Solaris San Jose del Cabo
Another question/issue maybe unpaid past Maintenance Fees. If County Taxes were not being paid there is a reasonable chance Maintenance Fees were not being paid.
 
  • Like
Reactions: RX8

Passepartout

TUG Review Crew: Veteran
TUG Member
Joined
Feb 10, 2007
Messages
28,464
Reaction score
17,215
Points
1,299
Location
Twin Falls, Eye-Duh-Hoe
Another question/issue maybe unpaid past Maintenance Fees. If County Taxes were not being paid there is a reasonable chance Maintenance Fees were not being paid.
I was just about to mention this. The intervals may well have been in default (unpaid taxes) and the management companies probably have a number of years of back maintenance fees owing. CONGRATULATIONS! You are the new 'Owner of Record'! Pay up before you get any use.

It will be interesting to find out how this comes out.

Jim

No info from @DenysM, but they indicate they own at 'Blue Whale'. There is such a name resort in Oceanside CA- a refurbed motel. Also one in South Africa. Stay tuned.
 
Last edited:
  • Like
Reactions: RX8

rjwehr

TUG Member
Joined
Dec 30, 2020
Messages
108
Reaction score
114
Points
103
Location
The Lone Star State
Resorts Owned
Mountainside @Granby Ranch,
Landmark Holiday Beach-PCB,
Inverness @ New Braunfels
We purchased a number of time shares at a county tax default auction. Most where purchased for little cash - none financed - so in short they are "free and clear" of any obligations and no mortgage "contract". The only legal document received from the county is the "Tax Deed to Purchaser of Tax Defaulted Property".

If you don't know what you are doing, taking possession/title of certain timeshares is kind of like buying an EPA Superfund site. You are responsible for "cleaning it up" and covering any liabilities before you can do anything with it.

Assuming everything is current (maintenance, taxes, special assessments, etc.), your best bet may be to flip/resell/give away quickly. If they're not current, you will have to get the fees up to date before you can do anything. If they are clear, you may want to post them on ebay or get a TUG membership to post them here. Hopefully, you will recoup what you spent at the tax auction, but I don't know if I would count on it.

If you do find someone to take them, I think the general consensus here is to use LTTransfers (https://www.lttransfers.com/) to handle the legal paperwork since they are efficient and have reasonable fees.

Good luck to you.
 
Last edited:
  • Like
Reactions: RX8

Janann

TUG Review Crew: Expert
TUG Member
Joined
Jul 20, 2006
Messages
1,363
Reaction score
780
Points
473
Resorts Owned
HGVC on the Boulevard, Las Vegas;
Disney's Saratoga Springs
The information on the San Diego County website is somewhat misleading:

When you purchase a timeshare offered at our public auction tax sale, you have to right to use that particular unit within the timeshare association for a specified interval of time on an annual, bi-annual or seasonal basis, depending on the terms.

I can see why someone who hasn't done any industry research would think they are buying something valuable.

 

RX8

TUG Member
Joined
May 5, 2011
Messages
4,107
Reaction score
4,454
Points
449
Resorts Owned
HGVC and DVC
I’m curious about this now. If one purchases from a county tax sale who is responsible for completing the proper transfer to the resort? I would think that would be the buyer’s responsibility so that would add another cost to the total out of pocket (times the number of deeds purchased). In addition, as others have already mentioned, the potential exists that the resort may not process said transfer until any past due maintenance fees are paid in full. I hope this doesn’t become a nightmare for the OP.
 

sfwilshire

TUG Review Crew: Expert
TUG Member
Joined
Jun 7, 2005
Messages
4,131
Reaction score
243
Points
448
Location
Clinton TN
Resorts Owned
Tristram's Landing, Tree Tops Gatlinburg, Mystic Dunes, Sheraton Vistana Spas & Fountains
I purchased a couple of "courthouse steps" units years ago. The county clerk did all the paperwork and got the deeds registered. All prior taxes and maintenance fees were waived. Easy peasy!

Sheila
 
Top