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Timeshare Closing Process The following steps are carefully taken to protect your interests and are an important function of a qualified and professional closing agent. 1. Once a signed contract is received with a deposit, the first thing most closing companies do is order a Title Search. This will ensure that the buyer is receiving a title that is free and clear. Most searches take a week to ten days, but depending on the area the resort is located in, the title search may take up to three weeks to arrive. A qualified agent examines the search to determine special requirements that have to be met to ensure a clear conveyance. 2. While the search is underway, the Estoppel information is ordered from the resort. This is the current owners account status. Many things are checkedwith this request to the resort. It must be determined if the Maintenance and Taxes are paid and when they are payable again. If an owner is behind on Maintenance and Taxes, the closing company simply clears the account at closing by taking the funds from the Seller’s proceeds. Some resorts charge transfer fees to change the ownership over, however most do not. This is discovered when the Estoppel information is received. Also included is the Mortgage information. Again, if a mortgage exists, it is paid from the Seller’s proceeds at closing. The Estoppel request also asks for the status and availability of the week, as it needs to be determined if weeks have been space banked with exchange companies so that arrangements can be made for the first year occupancy with the unit. 3. When all this information has been collected, the closing company organizes it into a Closing Instructions Package. It includes an itemized statement of the charges based on the contract or purchase agreement and the search. All appropriate paperwork is included in this package as it is the final instructions to prepare for closing. 4. The packages are usually due back in the closing company's offices a week later for closing as indicated again on the Closing Instruction Letter. Executed deeds and all moneys remain in escrow until all conditions of closing are met. For example: the Seller’s executed deed will not be sent to be recorded until the Buyer’s money is received, and the Buyer’s money will not be disbursed until the Deed and all paperwork is received. 5. Upon Closing, money is disbursed and the Warranty Deed is sent to be recorded in the Official Records in the resort’s county. The county usually takes about 2-3 weeks for their recording process before it arrives back in the closing company's office. At that time, a copy of the recorded deed is forwarded to the resort along with the new owner information so that the resort can update their records. The closing company will also forward the new deed to the new owner, with the title insurance policy to follow within 60 days. From the time the closing company receives a signed contract with a deposit to the point of closing, takes approximately 30 days or less plus two weeks to record deed. |
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