Buying a Resale - Seller Up-to-date with MF Fees

In a TS resale, I would 'assume' that the seller would have to be up-to-date on their MF fees... and if they were not, would they even be able to sell their TS? And if they are able to sell, how does this impact the buyer responsibility?

Thanks!

Usually, the MF's will have to be brought up to date before the resort will transfer the deed. That's one of the reasons you want to get an estoppel letter before you complete your purchase.

Thank you!

And so if a seller is saying that a buyer must pay the 2014 MF fees, might this mean that they have not been paid for 2014... or maybe the seller wants to be reimbursed for the MF fee they have already paid for the year?

NWTRVLRS said:

Thank you!

And so if a seller is saying that a buyer must pay the 2014 MF fees, might this mean that they have not been paid for 2014... or maybe the seller wants to be reimbursed for the MF fee they have already paid for the year?

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You'd have to ask, and then get the estoppel letter to verify.

Thank you

Just remember that some sellers don't really know what they are doing, some don't have all the facts, and some don't tell the truth, so verify everything independently.

Will do! Thank you

NWTRVLRS said:

And so if a seller is saying that a buyer must pay the 2014 MF fees, might this mean that they have not been paid for 2014... or maybe the seller wants to be reimbursed for the MF fee they have already paid for the year?

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It could mean either thing. If the fees have not been paid, the buyer will have to pay them during the closing process. If they were already paid, the buyer will still pay them during closing, but to the seller. You just need to mentally add that fee to the sales price. Let the closing company deal with dividing it all up.

NWTRVLRS said:

In a TS resale, I would 'assume' that the seller would have to be up-to-date on their MF fees... and if they were not, would they even be able to sell their TS? And if they are able to sell, how does this impact the buyer responsibility?

Thanks!

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Don't assume anything.

There is nothing stopping me from selling you my timeshare for which I'm not up to date on my MF payments unless the resort has started foreclosure proceedings.

Of course Denise is correct, the resort won't recognize the transfer into your name until you pay the delinquent amount.

On a recent purchase I was able to find someone at the resort to assure me the fees were current without her divulging any ownership info to me.

Thank you very much

There are many resorts that will transfer ownership with past due fees. I had one transferred recently but the resort kindly credited the late fee.

Saintsfanfl said:

There are many resorts that will transfer ownership with past due fees. I had one transferred recently but the resort kindly credited the late fee.

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I would question the legally of BOD doing that. While if prior owner is judgment proof and BOD wants to get unit back on the active paying rolls then a bad debt.

But if error made in transfer then really not fair to stiff other owners.

pacodemountainside said:

I would question the legally of BOD doing that. While if prior owner is judgment proof and BOD wants to get unit back on the active paying rolls then a bad debt.

But if error made in transfer then really not fair to stiff other owners.

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I think the difference might be when usage begins. This particular unit took almost 10 months to transfer, and ended up being the wrong resort but that's another matter. Contractually my usage was supposed to begin 2014 and I was supposed to be responsible for the 2014 fees, but due to so many errors and mix-ups nobody knew what unit it was so it ended up being late due to no fault of mine.

That said, Marriott will transfer a unit with a past due fee regardless when the new owner's usage begins. I have had this happen and received the standard Marriott transfer letter but it had an extra paragraph regarding the past due fee. It was a template so it sure looks like it is a standard Marriott practice.