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Re: SELLING MY TIMESHARE (by Carvan A.):

ken1193 wrote:

carvana states / asks, quoted only in pertinent part:

>> You say many closing companies do not include estoppel letters as part of their service. What is an estoppel letter in the context of selling a timeshare and why would these estoppel letters be needed? << ======================================

An estoppel letter, while not legally required, is a statement in writing from the resort addressing the presence or absence of any outstanding debts or fees or liens currently existing in the seller's name. Is it legally required? No. Is it a good idea? Yes. Is it worth an additional $50 to you (or to your buyer) for peace of mind? That's for each to decide on his / her own.

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>> You also say that resort transfer fees are not included in the typical $250 closing fee. Does that mean the closing company does not notify the resort that the ownership has been transferred? <<

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First, I did not say that $250 is a typical fee. That figure is actually below the average, which is closer to $350. The closing company (if competent) will always notify the resort, generally by sending the resort a copy of the recorded deed. That fact aside, many resorts STILL demand and collect an additional "transfer fee" ($75 on average) just to change the names in their records. You can argue that the practice is just petty larceny, but the argument won't get you around paying the fee...... I don't know anything about Marrioott or Hyatt policies; it is my custom and preference to not comment on subjects about which I have no personal knowledge.

Thanks for clarifying the term "estoppel letter". It seems to me that you are referring to a lawyer's title opinion. The use of estoppel puzzled me in that the general meaning of estoppel is that "a party is prevented by his own acts from claiming a right to the detriment of another party who was entitled to rely on such conduct and had acted accordingly". An example would be a grantor in a warranty deed who does not have title at the time of the conveyance but who subsequently acquires title is estopped from denying that he had title at the time of the transer and such after-acquired title inures to the benefit of the grantee.

The best protection for a buyer is not "estoppel letters" that comment on outstanding liens and debts but provide no assurance other than the integrity and competence of the one who wrote the letter but instead title insurance that in effect gurantees a good title or compensation from the title company in the event of a overlooked unpaid special assessment or tax.

I have always insisted on title insurance when closing a timeshare purchase and the expense is minimal when compared to the peace of mind it provides.

To say, "typical $250 closing fee" is not the same as saying that the "typical closing fee is $250". One refers to what one can expect when paying $250 and the other is giving the mean amount typically charged in a timeshare closing.