What is a reasonable closing delay?

[atsdon1]

First, my background is as a commercial real estate broker, sometimes having to handle the actual closings.

Back in the early part of February, 2022, I agreed to purchase two timeshares, one through this site, the other through eBay. Both have suffered the same problem, slow as molasses. After about 60 days I sent emails asking for an update and received nothing from either agent. Now, 90 days later, I'm concerned. Here's why.

Legally there are a couple of steps that need to be completed.
1. Both parties need to sign the agreement, usually notarized, which can take a couple of weeks for really slow individuals.
2. All pertinent documents, CC&Rs, underlying contracts, financial settlements, etc. need to be checked for contingencies, which can again take a couple of weeks.
____They should all be in the broker's or closing agent's hands at the time of contract completion as being legally binding on and pertinent to the sale.
3. The most notable contingencies are:
______a. Contractual restrictions on the type of new ownership which can easily be done by email within a week,
______b. Right of First Refusal which is generally limited by the courts to 60 days, and
______c. A resorts desire to do internal accounts transfers. These need to wait until after closing so shouldn't apply.
Thus, a 90 day closing is reasonable. Beyond that it becomes excessive, questionably legal, and jeopardizes the entire transaction.

I don't know who to find responsible - the seller, closing agency, or the resort. Whatever the case, buyers need to voice their complaint. If a strong complaint isn't enough to cause a refund of deposit, a letter from an attorney to the broker or closing agent can usually do the trick. Anything beyond a very reasonable 120 days on a simple sale of a timeshare would be found by most courts be excessive and grounds for cancellation and charge for legal costs involved.

I've voiced my feeling based on experience. I, for one, will give them the 150 day, but at that point a letter to the representative broker and closing companies will be sent to cancel the purchase.

What are your thought?

 

[rickandcindy23]

I have been waiting longer for a Marriott to transfer.

 

[marmite]

I have noticed that in some of the eBay auctions you are agreeing to up to 6 months for closing. They even say don't bid if that is not an okay timeline with you. I feel like 3 months should be plenty of time, and honestly I get a bit nervous when it starts to exceed that. But that is just me, in the end the timeshares I have bought on eBay all worked out, even if they were slow to close.

I try to research the seller to the best of my abilities and then try to be patient -- of course I do email or call them to let them know I'd like a status update, but once it is in the hands of the timeshare company you are at the mercy of how quickly or slowly they act too. There are some companies that are notoriously slow (it is now over 120 days on my Worldmark contract).

I am reluctant to cancel a purchase, because then I have to start from scratch and then have even more months to wait. Me cancelling a purchase hurts me more IMO.

You could see if in the future a seller would agree to add to the contract that you can opt to cancel if it is not completed by X date, but I'm not sure what kind of legal issues might arise if you decide to back out at this late date. I'm sure you would know that more than I (since you're a professional broker).

I suspect that not many eBay sellers would be willing to put themselves on a tight timeline where they could lose money if the deal was not completed swiftly -- they do not control the final steps in the process so would be at the mercy of that company doing the final registration.

 

[travelhacker]

What did you purchase? If you bought a deeded week (more than likely), the deed needs to get recorded with the county where the property is located. You can typically look up the deed yourself online.

Once the deed has been recorded, it is sent to the resort for validation and internal transfer.

If the deed hasn't been recorded, I think that's probably way too long.

If it has been recorded and been with the resort company for transfer there really isn't much that can be done other than wait.

I waited from the middle of November until middle of February for the Marriott to transfer.

 

[noreenkate]

What did you purchase? If you bought a deeded week (more than likely), the deed needs to get recorded with the county where the property is located. You can typically look up the deed yourself online.

Once the deed has been recorded, it is sent to the resort for validation and internal transfer.

If the deed hasn't been recorded, I think that's probably way too long.

If it has been recorded and been with the resort company for transfer there really isn't much that can be done other than wait.

I waited from the middle of November until middle of February for the Marriott to transfer.

I understand the OP's frustration - for me its been 56 days since end of a Ebay auction and still no deed with the county, as far as I know they still don't have the seller documents yet- cant imagine how long this is gonna take once it gets to the resort level. the closing company seems to be the issue, contacted the company about a month after and got a whoops we apologize, we forgot...its a shame to because the company had a few Marriott contracts I would have loved to bid on but I honestly don't trust their process at this point.

In the last few months I have picked up a few smaller contracts and boy there are definite differences in quality...what I have learned from this is getting closing costs included is not always the best route... Sterling title is quick but at least LT transfers tells you upfront we are backlogged and it will be a few weeks.

 

[Jan M.]

In mid February I sold five Wyndham deeds and one Club Wyndham Access contract. As soon as I received payment from the buyers I emailed LT Transfers to have them send the sales agreements and document prep forms for both the buyers and us to complete, sign and send back. I scanned the deeds/contract, the estoppels, copies of our driver's license and sent everything to LT Transfers and paid their invoice. When they had the new deeds prepared we had to print them out, get them notarized and send them back. Once the new deeds were recorded LT Transfers sent the new deeds along with payment for the transfer fee to Wyndham. They began transferring out of our account on 4/21 and all but one are now in their new owners Wyndham accounts. The last one I'm expecting to see leave our account next week. That one I knew would take longer because it's Wyndham National Harbor and for Prince George's County someone has to physically take the paperwork to the courthouse

I included the buyers in my emails to LT Transfers. LT Transfers kept us and the buyers updated at each step.

 

[TheTimeTraveler]

Some of the eBay auctions are good; others are terrible.

If you not lucky and win one of those terrible eBay auctions then be prepared for a long time before it gets into your name (if it gets into your name at all). I have found some of them have no idea what they are doing and many won't go out of their way to help you. Why should they? They have your money and control the entire situation leaving you hanging.

This is why I won't buy an auction anymore unless the seller lets me use LT Transfers at my expense. Most won't and that's a red flag in my opinion......





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[echino]

What was the eBay handle of the seller? A few sellers on eBay are scammers, and pretend to be in the long closing process when the timeshare they are selling actually does not exist.

 

[atsdon1]

Since the eBay and Tugbbs were $1 Bargain Basement deals, I'm not worried about the money. My concern is the use THIS YEAR of the time supposedly included with the sale. If it's not done until Mid-November, good luck using either of them. A waste!

My idea going forward is that I will require a defined time, and I'll give 120 days, for completion or cancellation. If a seller or dealer/broker doesn't like that, it's plain I don't want them. I would hope others would start doing the same so this works to curb this abuse for all of us.

 

[TheTimeTraveler]

Since the eBay and Tugbbs were $1 Bargain Basement deals, I'm not worried about the money. My concern is the use THIS YEAR of the time supposedly included with the sale. If it's not done until Mid-November, good luck using either of them. A waste!

My idea going forward is that I will require a defined time, and I'll give 120 days, for completion or cancellation. If a seller or dealer/broker doesn't like that, it's plain I don't want them. I would hope others would start doing the same so this works to curb this abuse for all of us.

A dishonest eBay seller will tell you whatever you want to hear, and then do whatever "they" want once they have your hard earned money!



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