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Problem with resale

S

stevens397

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Location
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Purchase WMH on eBay. Closing was thru Timeshare Transfers, Inc and closed one year ago.

Just received a bill for taxes from Riverside County for unpaid taxes for 2007-2008 totalling $358. Who do I call - Riverside County or the Timeshare transfer co? I would assume it would have been transferred without encumbrances and that all prior taxes should have been paid.

Appreciate any insight. Thanks.
 
Did you buy title insurance? Regardless, I would definitely take this issue up with TTI.
 
Ken555 said:
Did you buy title insurance? Regardless, I would definitely take this issue up with TTI.
Click to expand...

If title insurance was not purchased, how would TTI be liable or responsible for resoution. A deed only closing is just that. Actually, I do not think there is any resolution here because of the closing option that was chosen ~ of course, I am assuming this was a deed only closing.
 
Title insurance would cost just about the amount of money we're talking about here. But it does make you wonder what other problems will arise with this purchase.
 
Why would you consider calling either the county?

If paying the '08 taxes was part of the closing then yes the closing company should have made sure they were paid, but if the seller said the taxes had been paid and they had not been paid, the closing company wouldn't know. The seller is responsible for paying the taxes.

On the other hand, by buying resale you likely saved $5,000 to $20,000. Why worry about $358?
 
I would check to see what the "closing instructions" were. If they said that all taxes should be paid, then even without title insurance, I believe the title company would be at fault for not doing what they agreed to. Call the title company and discuss this with them.

Greg
 
From Timeshare Transfer's FAQs page - http://www.timesharetransfer.com/timesharetransfer/faq.aspx
How do I know if maintenance fees and taxes are current?
You may request an optional Estoppel Letter (investigation as to status of fees and taxes) from your Closing Agent. The fee for the Estoppel Letter is $25.00. Many resorts will provide this information to individuals and we encourage you to do your due diligence without having to incur additional closing costs.
Click to expand...

Did you buy the optional Estoppel Letter? It's an optional service - http://www.timesharetransfer.com/timesharetransfer/services.aspx.
If so, check the Esptoppel Letter. I would think that it would have been caught there or at least highlighted that the taxes weren't verified because it's collected separately (not by the resort).

Good Luck. Please let us know how it turns out.
 
Bill4728 said:
Why would you consider calling either the county?

If paying the '08 taxes was part of the closing then yes the closing company should have made sure they were paid, but if the seller said the taxes had been paid and they had not been paid, the closing company wouldn't know. The seller is responsible for paying the taxes.

On the other hand, by buying resale you likely saved $5,000 to $20,000. Why worry about $358?
Click to expand...

My thoughts too.

Even though I sympathize, I am not sure I would spend too much time and money for $358.
 
Bill, "Why worry about $358?"

My sentiments exactly. First, given this was a resale at a vountary resort, paying $358 more probably wouldn't have been a deal killer at the front end. Second, by the time you get this straightened out the mere aggravation is worth more than the $328.

Plus, if the taxes have been delinquent for some time, they can be foreclosed and the property sold to a tax buyer. You can redeem from any sale, but why futz around.

Pay it. Chalk it up to experience. And, only pursue TTI for reimbursement if you don't have anything better to do and are masochistic. ... eom
 
Well, everyone, it never occurred to me to let it go into default. And $358 is not a lot of money to me.

To those who said I should have known better, well, I only wish I were as smart as you are. Silly me assumed that you pay a closing company to deliver a deed free of encumbrances. Are you telling me that you would not have been surprised to get such a letter. And if you did, that your would not have been annoyed? Yes, I got a great deal, but it does make you wonder what the hell they collect their fee for!

No problem. I have more than enough timeshares. Any lesson I learned will not be needed in the future.
 
I had a similar experience happen to me lately. After the deed was recorded in my name I discovered that the TS had been foreclosed on and the owner did not have the legal right to sell it. For whatever reason, the closing company did not catch it. The TS was cheap, so I didn't buy title insurance, but even if I had, all I would have gotten back was what I paid for the TS - which I did anyway.

Yes, I was irritated! Big time!

If you are not happy with this purchase and feel that they failed to disclose all info., then you should ask for your money back. I'd go back and look at the seller's and closing company's Ads on ebay - do they guarantee a clear deed? If so, you have grounds for a refund.

Your other options is to tell the seller that you expect THEM to pay the back taxes and see what happens...

Who was the seller?

Good luck, my friend!
 
Last edited:
stevens397 said:
Well, everyone, it never occurred to me to let it go into default. And $358 is not a lot of money to me.

To those who said I should have known better, well, I only wish I were as smart as you are. Silly me assumed that you pay a closing company to deliver a deed free of encumbrances. Are you telling me that you would not have been surprised to get such a letter. And if you did, that your would not have been annoyed? Yes, I got a great deal, but it does make you wonder what the hell they collect their fee for!

No problem. I have more than enough timeshares. Any lesson I learned will not be needed in the future.
Click to expand...

Closing companies don't do much for the $299 fee. That is the truth of it. If you get title insurance, they do a title search and discover things like past due taxes. If they don't discover those taxes, you can make them pay the taxes. That is how title insurance works. A closing is just so simple, I don't know why most people cannot do them quickly. It's just a matter of copying a deed entirely, then mailing it to be recorded. No big deal. So you did pay for very little service, but that is the way it is. :(
 
Thanks for sharing this experience!

Stevens397,

I am glad you posted your experience. Although it is not a lot of money, it tells people out there (like me) that a resale can have this potential problem.

FWIW, make sure you list this as an itemized deduction on your tax return.

Again, thanks for sharing.
 
stevens397 said:
Well, everyone, it never occurred to me to let it go into default. And $358 is not a lot of money to me.

To those who said I should have known better, well, I only wish I were as smart as you are. Silly me assumed that you pay a closing company to deliver a deed free of encumbrances. Are you telling me that you would not have been surprised to get such a letter. And if you did, that your would not have been annoyed? Yes, I got a great deal, but it does make you wonder what the hell they collect their fee for!

No problem. I have more than enough timeshares. Any lesson I learned will not be needed in the future.
Click to expand...

I agree with your annoyance; I know despite the amount I would be very aggravated. That said, hopefully you got a great buy and are enjoying your purchase, so don't let it mar your next vacation there.

I'd pay it, but I'd also enclose the bill in a very strongly worded letter to the closing company. As stated above, if a clear deed was guaranteed or an Estoppel letter provided I'd make it clear that they are responsible for reimbursing you. A few very negative Internet posts can do a lot of damage to a business' reputation, and I'd let them know that others will be made very aware of how they handle the situation.
 
Certainly this is one of the hazards of buying resale and particularly from ebay. Th price advantage and the option to buy title insurance is also part of this scenario.

I would pay it, just adding it to my mental original cost basis but would also spend a minimal amount of energy getting reimbursed (ie. Letters to the selling company and former owner). If it works, GREAT, if it doesn't, it won't break the bank.

As others have stated, don't let this spoil your ownership,.

Good luck!
 
Well, my eBay purchase for a week in Bella at SVV was paid through PayPal on August 11. After reading about stevens397's problem with TTI, I called TTI today (August 20) to see where the closing process was.

I was told by TTI the recorded deed had been received back and was mailed to me this morning, Starwood has been notified by TTI (I'll check with Jose Pagan on Monday to make sure the week is in my SVN account) and the title policy will soon be issued.

But, who knows what will turn up next year to jack up the price? lol!

I intend to search the Recorder's Office to see that everything's in order when I see the recording number stamped on the deed.

The estoppel letter from Pagan that I demanded to see before I paid anything said the 2009 MF had been paid. ... eom
 
jarta said:
Well, my eBay purchase for a week in Bella at SVV was paid through PayPal on August 11. After reading about stevens397's problem with TTI, I called TTI today (August 20) to see where the closing process was.

I was told by TTI the recorded deed had been received back and was mailed to me this morning, Starwood has been notified by TTI (I'll check with Jose Pagan on Monday to make sure the week is in my SVN account) and the title policy will soon be issued.

But, who knows what will turn up next year to jack up the price? lol!

I intend to search the Recorder's Office to see that everything's in order when I see the recording number stamped on the deed.

The estoppel letter from Pagan that I demanded to see before I paid anything said the 2009 MF had been paid. ... eom
Click to expand...

Jarta,

You will be fine. You're in a different situation. Property taxes on Florida properties are paid by SVO and billed to the owners by SVO. Since the estoppel showed MF's paid, the taxes are paid.

The OP's problem is that property taxes on the California properties are billed directly to the owner of record similar to other real property, so the only way to ensure that there are no back taxes is to check with the county. A good closing company does that.

-tim
 
I thought county recording offices require prior years taxes to be paid in full before they will record a new deed, how did this happen?
 
I've had this happen with two of our five purchases.

San Clemente Inn had an outstanding tax bill with late fee's and penalties totaling just under $50. I paid it and just moved on.

Summer Bay DC in Vegas had past due MF's and the transfer company laid a bad check on the county recorder's office for our recording. I covered both as we had received and used a good amount of RCI points that came with this purchase and at the end of the day it was in our interest to make good on the amounts. Shortly thereafter the transfer company went under and I felt lucky to have closed this deal. Many others were left hanging.

It's not the way it should be...but occasionally it's the way it is.
 
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