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More questions... (by Dr. K.):

ken1193 wrote:

In that other forum discussion, I have raised the question regarding whether resorts might well lawfully and successfully challenge the validity of any timeshare deed suddenly changed from an identifiable individual(s) ownership into the name of a "corporation" (regardless of whether or not that corporation is a non-profit). I have also raised the question whether an established closing company would actually willingly conduct a closing in which a new deed "grantee" is only a faceless "corporation".

No accusations or judgements intended --- just some additional important and relevant questions not yet addressed or answered...

I'm not an attorney, but I have been a commercial real estate broker and am aware of the law so until an attorney weighs in here's an answer from my experience.

The resort has only a limited ability to question a deed if it is intended to avoid an existing debt (not future upcoming bills) or if there was some illegal aspect of the actual title transfer. This is called a cloud on title and what is the primary reason for experienced title companies handling the transaction. Whether an individual, corporation, or any legal form of business holds title can not be challenged unless there is specific restrictions within the previous deed or resort membership documents limiting such transfers. That is rare but does occur where within a previous binding document affecting title it specifically states ownership can be transferred to or block to a specific entity or class of owners (corporation, individuals, etc.). This is one of the things title companies check. It is a form of covenants and restrictions just like homeowner's associations.

As for the legitimacy of the buyer, the title company is most concerned with the title and the sellers legal ability to provide a clear title. The recipient is dictated by the seller. However, title companies routinely transfer titles to faceless corporations. Within the law a corporation is essentially the same as an individual.

It would be nice to have an attorney weigh in on this, but until then I hope this helps.