Who's responsible for assessments??

[abc31]

Do you think a seller is obligated to disclose the fact that there are assessments due when they are selling on ebay?

I am in the process of buying something that I won on ebay. The seller only listed the maintenace fee. He didn't say anything about the taxes which are in addition to the maintenance fee. There is also a reserve fee (which apparently fairfield charges for making a reservation to use the week that you already own).

I called the resort to make sure all the fees are current & the recording said press 2 to pay your maintenance or assessments." When I got through to an operator, she would not give me any info regarding the assesment fees because my name isn't on the contract. She said I should have the seller call & conference me in & they will give me any info I want.

I have not been able to contact the seller today, but he is expecting me to send him a signed purchase agreement today.

If I find out that there is infact a special assessment. Do you think I am responsible for paying it? Or is it the seller's since it was assessed during his ownership?.


Thanks

abc

 

[johnmfaeth]

Hi ABC,

Special assessments are like back MF's in that they run with the timeshare regardless of when assessed. If they exist and were not paid, they will appear (with late fees) on your account after the closing.

Failure to disclose material facts is a violation of real estate law in almost all states. You would have to prove that the seller should have been aware of the assessment as a "reasonable" person would be. Like any other civil litigation (I assume you will have difficulty getting a State Attorney General to pursue the case criminally), it will be a long, tiring process.

The reality is that you can have the seller get an official "estopel" letter from the resort which states the financial situation. Many of the big Ebay sellers get these before listing for their own edification. Resorts tend to charge $50 - $125 for this.

Three way call also sounds good. The risk there is that the resort person you are dealing with makes a mistake and does not see something in the account.

 

[T_R_Oglodyte]

...
I called the resort to make sure all the fees are current & the recording said press 2 to pay your maintenance or assessments." When I got through to an operator, she would not give me any info regarding the assesment fees because my name isn't on the contract. She said I should have the seller call & conference me in & they will give me any info I want. ...

Which is exactly what the operator should say. The resort has no business releasing private information about an owner to someone who calls out of the blue, requesting information about that owner's status.

 

[PeelBoy]

Closing Related Question

Instead of creating a new thread, may I ask the question here?

I bought from ebay a 2 bedroom float week 22 -35 at Plantation Resort of Myrtle Beach, for only $102.50.

I received the contract today. The seller (Go Time Share LLC) said all mortgage and fees have been paid in full. I won't take his words only, so called the resort. The sales department was able to confirm verbally all mortgage and fees are up to date till 2008.

The closing company is Resort Closings, Inc. Their contract is most unfriendly, amongst all I have dealt with. In a nutshell, the contract protects neither the buyer or the seller but Resort Closing Inc.

In the contract, it says "The BUYER will pay the above sale price for seller to provide free and clear by way of Warranty deed or Membership Agreement to the resort in this contract". It also say "This timeshare closing includes all of the above without a Title Insurance Policy or property tax verification". A complete timeshare closing provides title insurance, resort account verification, drafting of transfer documents, property tax verification and transfer confirmation from resort. The former charges $475 and the latter $695.

I don't want to pay $220 extra. Do I have enough protection, since there will be a warranty deed?

By the way, I have declined to close another purchase because of insufficient disclosure of special assessment, though the seller later offered to pay the SA himself?

 

[johnmfaeth]

Hi Peel,

Last statement first - if the seller didn't disclose the assessment but then offered to pay for it, how is that different from your original deal in your costs or outcome? Morally, I disagree with cancelling it, though all Ebay auctions can be abandoned if you read the Ebay legalese (until you sign the seller's contract).

As to the first one, you are absolutely smart to do your due diligence. I assume it's deeded, demand a copy of the first deed page or the recording info on it. Contact the Recorder of Deeds for that county and see if any open liens are filed against it.

Also contact the County Tax Collector and see if it's paid up to date and whether it's billed individually or whether the resort pays the taxes as a whole for all.

You will then know all that a title search would have given you.

I have dealt with them on numerous transactions. Go Vacations is owned by one brother, Resort Closings by another (the Tarpey Brothers). They are nice enough people and get the job done, slowly sometimes. I've cuaght them in a few mistakes and they always made it whole.

John

 

[abc31]

Thank you. I was able to find out through a conference call, that there are no assessments due on the properety.

abc