Purchasing a Timeshare

[Stoney01]

We are looking at purchasing a timeshare from Timeshare's only in Hilton Head. The contract they sent asks for a deposit of $500. Is this customary? Anybody have any comments about Timeshare's only?

 

[DeniseM]

How much are you paying total? What exactly are you buying?

In this economy, most timeshares are selling for 0-10% of original retail. My guess is that you are paying too much.

All funds should be sent directly to a licensed, reputable, closing/escrow company.

 

[Stoney01]

$

$4500 for the unit. Looks like $775 for full closing, plus $195.00 Admin fee & $130 for resort transfer

 

[DeniseM]

That is waaaay to much for closing - should be no more than $450. I would get out of this deal, and do a lot more homework before you buy.

 

[Stoney01]

Closing

There is an option for a deed only closing for $525. The full closing includes title search and title insurance. I would feel better if we had the full closing option. Are these costs negotiable?

 

[strandlover]

Stoney, I am pretty sure that you will find something comparable on ebay for 0-10% of $4500 as was suggested.

I bought three TSs thanks to the sound advice from the amazing people here!

Good luck, tread carefully....

 

[DeniseM]

This particular seller is soaking you on the fees to make a profit. A typical full closing with a reputable agency should be no more than $450. My guess is that you need to do a lot more homework before you buy - there are many options out there, and you can probably also buy this TS for less. They are known for being over-priced.

To find comps, go to ebay, and log in, and search for the resort by name in the timeshare section. Then click on "completed listings" to see final prices.

More info. about Timeshares Only

 

[Stoney01]

Thanks to all

Thanks for your advice. Will look on ebay and probably have some more questions as we are new to this idea. Great site mods.

 

[richardm]

South Carolina is an attorney state, so closings there can be much higher than other areas. I'd recommend that regardless of where you purchase, spend some time to research and choose a closing agent that you are comfortable with- and than make that choice a term of your purchase.

A good closing agent can be the most important part of your purchase process!

 

[vacationtime1]

South Carolina is an attorney state, so closings there can be much higher than other areas. I'd recommend that regardless of where you purchase, spend some time to research and choose a closing agent that you are comfortable with- and than make that choice a term of your purchase.

A good closing agent can be the most important part of your purchase process!

I paid $285 for an escrow on a Sheraton Broadway Plantation purchase in South Carolina; it was handled by a Myrtle Beach law firm.

I strongly agree with the above posts about additional research and the importance of a good closing agent. It is too easy to pay too much.

 

[Dave H]

This particular seller is soaking you on the fees to make a profit. A typical full closing with a reputable agency should be no more than $450. My guess is that you need to do a lot more homework before you buy - there are many options out there, and you can probably also buy this TS for less. They are known for being over-priced.

To find comps, go to ebay, and log in, and search for the resort by name in the timeshare section. Then click on "completed listings" to see final prices.

More info. about Timeshares Only

Denise: It is a South Carolina Closing. First, a LICENSED ATTORNEY has to conduct the closing. Second, if the buyer is getting title insurance, a LICENSED ATTORNEY has to prepare a title opinion to get the title insurance issued.

I do not know what you think a SOUTH CAROLINA Attorney is going to charge, but I can tell you that you are looking at $250 for a title opinion on an average, $75 for the title policy and you still have not done a title search to get the opinion on or pay the attorney for his closing fees, recording fees etc.

You really need to learn the laws especially in the Carolinas.

 

[DeniseM]

Dave - thanks for your input. So you don't think that $1,100 for closing is excessive? - especially with the reputation of this company. How do you know they are using a licensed attorney? How much does your company charge for a closing in SC?

 

[Goofyhobbie]

Use of An Attorney For Timeshare Closing In South Carolina

Dave H.,

I have read your posts on several occasions regarding Timeshare Closings in South Carolina.

I agree with you that it is probably a good idea to use a South Carolina attorney; but I believe that some very reputable timeshare closing companies outside the State of South Carolina can do the closing IF the timeshare closing company has a supervising Attorney on Staff and appropriate laison in South Carolina.

I have two questions for you:

1) Other than the situation where an out of state timeshare closing company has an Attorney on Staff that is licensed in South Carolina, can that timeshare closing company do a closing that pertains to South Carolina property without a laison Attorney inside the State Of South Carolina?

2) If a South Carolina Attorney is not required to have hands-on handling in South Carolina, can the out of state closing company that has Attorney supervision [without being licensed in South Carolina], hire anyone to do the recording in South Carolina and/or can they simply send the deed through the mail or by Fax to the Court House for recording?

 

[Goofyhobbie]

Timeshare Closing In South Carolina

To the OP,

There are attorneys in South Carolina who specialize in timeshare closings and charge fees that should be considerably less than the fees being suggested by your seller.

Recommend that you find such an attorney that is agreeable with both parties if you decide to go through with the purchase.

There is no way, that I would pay what they are asking given the consideration being provided.

One attorney that has been helpful to me in the past is the following:

William Paul Young, P.A.
Attorney at Law
P. O. Box 4213
118-A Main Street, Suite A
North Myrtle Beach, S. C. 29582
(843) 249-9999
FAX: (843)-249-5876

His para-legal or he can send you an Information Sheet that outlines his charges.

Keep in mind that both Hilton Head and Myrtle Beach, SC are "hotbeds" for timeshare real estate transactions. Not only is Mr. Young reasonable he is in the middle of the industry.

No doubt, you can also find an attorney in Hilton Head who will do the closing for you at a cost that is more reasonable.

 

[Dave H]

Dave - thanks for your input. So you don't think that $1,100 for closing is excessive? - especially with the reputation of this company. How do you know they are using a licensed attorney? How much does your company charge for a closing in SC?

Denise:

It depends on deed only change or title insurance. 375 and 775, title searches and opinions are not cheap there. which is what the other person listed as well, you can not count admin and transfer fees as part of closing

 

[Dave H]

Dave H.,

I have read your posts on several occasions regarding Timeshare Closings in South Carolina.

I agree with you that it is probably a good idea to use a South Carolina attorney; but I believe that some very reputable timeshare closing companies outside the State of South Carolina can do the closing IF the timeshare closing company has a supervising Attorney on Staff and appropriate laison in South Carolina.

I have two questions for you:

1) Other than the situation where an out of state timeshare closing company has an Attorney on Staff that is licensed in South Carolina, can that timeshare closing company do a closing that pertains to South Carolina property without a laison Attorney inside the State Of South Carolina?

2) If a South Carolina Attorney is not required to have hands-on handling in South Carolina, can the out of state closing company that has Attorney supervision [without being licensed in South Carolina], hire anyone to do the recording in South Carolina and/or can they simply send the deed through the mail or by Fax to the Court House for recording?

In answer to your questions, the Supreme Court in the State of South Caroilina has rules that it is the practice of law to do the following:

1. Prepare deeds
2. Handle a closing
3. Record Documents
4. Render an opinion on title for title insurance.

That being said, the only attornies that can practice law in any state are attornies that are admitted to the bar of the respective state. In other words, a lawyer licensed in Florida can not practice law in any other state. A lawyer can be charged for the unauthorized practice of law as well as a lay person.

In answer to your question, a closing company in Florida can mail documents to someone, but the South Carolina Attorney has to prepare the documents, handle the funds and record the documents.

A SC Attorney is also supposed ot place there BAR number on the deed for reference. Most out of state closing companies choose to list the seller as the preparer on the documents as a party to the transaction is exempt from the rule.

The best part is the deed is then executed by a power of attorney. If the seller prepared the documents, then the seller should have been able to sign them. Since the POA signed them, then a prudent person would also assume they prepared them, which means they are not a party to the transaction and therefore not able ot legally prepare them.

Sorry, I have 2 SC Atoorneies in my office and this is one state I stay on top of as they are one of the more aggressive ones on UPL violations.

 

[vacationtime1]

I paid $285 for an escrow on a Sheraton Broadway Plantation purchase in South Carolina; it was handled by a Myrtle Beach law firm.

I strongly agree with the above posts about additional research and the importance of a good closing agent. It is too easy to pay too much.

I was asked in a couple of PM's to post the law firm I used:

Alan D. Clemmons
Clemmons Law Firm, LLC
610 18th Avenue North
Myrtle Beach, SC 29577

voice 843-916-9986
fax 843-626-9425

I worked exclusively with a paralegal there: Jayme Welsh.

My transaction was in November, 2008. The $285 fee included all escrow charges and an ALTA title insurance policy underwritten by First American Title (a major title insurance company). Alan Clemmons signed the policy on behalf of Resort Title Company, Inc.

My understanding is that this firm has some kind of ongoing relationship with SBP and does many closings for that particular project; I have not verified that.

The entire transaction took about a month, from eBay close to recordation. Very efficient and I recommend them highly, assuming no personnel or structural changes in the law firm since then.

 

[JudyS]

I think the big issue here is not how much the closing costs, but how much the timeshare itself costs. For $4500, that Hilton Head timeshare had better be a Marriott!!! (And in a good season, too.)

As for closing costs, I don't own any South Carolina weeks, but I own a bunch of North Carolina weeks. North Carolina is also an attorney state. I think my closings were about $300, handled by Lake Lure Realty, with an attorney signing off on the deed.

 

[richardm]

Admin fees are just a junk fee charged by the brokerage..

Denise:

It depends on deed only change or title insurance. 375 and 775, title searches and opinions are not cheap there. which is what the other person listed as well, you can not count admin and transfer fees as part of closing

I agree.. You shouldn't confuse the closing fee which goes to the closing and escrow agent with the fees that go to the resort or the brokerage. Misrepresenting them by bunching them all together to me simply seems like an attempt at propaganda, especially when comparing them to another estimate that doesn't include either the transfer fee of the admin fee.

The transfer fee quoted seems strange to me however.. Perhaps the OP misquoted the amount, as I'm not aware of any resort in SC that charges $130. For some of the Marriott's- there will be a $95. waiver fee and a $25. transfer fee charged by the developer. Perhaps the OP was referring to these?

The admin fee is simply another form of broker's commission that is quite common in the real estate industry.. Many offices will charge this type of fee to a buyer or seller as a way of increasing their commission yield on the sale. Another tactic is for the office to charge such a fee and consider it distinct from commission earned (of which the individual sales agent receives a percentage as compensation). This type of tactic can save the brokerage on payroll, or is a policy used to "increase" an agent's commission percentage without actually incurring any more payroll expense.. For example, many of the Re/Max offices pay the individual sales associate 95% of the commission earned.. 5% goes to Re/Max corporate for franchise fee. The broker earns his money by charging what is basically a monthly chair rent to the agent, and then by charging an administrative or transaction fee on top of the commission.

From a buyer's point of view- what you need to do is add up the various costs to determine what you are actually spending. You should always ask for a good faith estimate prior to closing. It probably won't be to the penny, but should give you a really good idea and disclose any unusual fees or charges. Agent's don't like to prepare them (it takes time and thought!) but I doubt if they'll flat out refuse.

If a buyer believes the final price is reasonable- that's the most important thing. As we've seen time after time with the eBay resellers- surprise costs (such as double paying maintenance fees or paying inflated resort transfer fees) happen all the time, but the overall value may still make the purchase worthwhile.

The ONE THING that I would consider most important is simply choosing a closing agent that you feel comfortable will do the transfer and verification properly! If you are paying the closing costs, it is REASONABLE for you to have the right to choose the closing agent. If the seller or brokerage won't agree, then simply DO NOT BUY FROM THEM!

 

[Robert D]

I think Judy makes a good point that the timeshare is probably way overpriced in addition to the excessive closing costs. I've looked on the Timesharesonly website on several occasions and found it to be a waste of time. They are basically a company that rips off desperate sellers getting them to pay $500 or more to list their timeshare on their site and overstate the value of it. They also try to charge the buyer different types of fees (such as an administration fee) for buying this overpriced stuff. I have to think you can find the same timeshare at a fraction of the price and also not get ripped off on the closing fees. It would be good to know the timeshare the op is buying and the season.