Rental Escrow

Can someone explain to me excatly how a rental escrow for a timeshare works. I always use PayPal with no problems, but I have a client who want to use escrow, because it is a large sum. CAN ANYONE HELP ME ASAP. THANK YOU.....

Redweek recommends an escrow service called 'American Title'. I believe they charge $100 for the holding of all monies until after the vacation is complete.

You can probably check 'resources' in the top right hand corner of this page to learn more about them or contact a live rep (left hand side of this page].

Vacation Rental Escrow Service RedWeek.com now offers a secure and convenient third-party handling service to members wishing to make a rental transaction. Using the escrow services of First American Title Insurance Co., an innovator in the vacation ownership industry, RedWeek.com members can transact rental agreements with other members, without security concerns that may be associated with private transactions. The service is available for rentals made at least one week in advance.

Costs (in $USD): $100 for rental price of $0 - $1,000 $150 for rental price of $1,001 - $2,000 $200 for rental price of $2,001 + Costs to be split 50/50 by the two parties, unless otherwise negotiated.

Visa, Mastercard, Discover, American Express, or checks are accepted as payment.

Steps: The two members come to an agreement on a rental price and use of First American Title Insurance Co.'s vacation rental escrow service. The owner completes the online Rental Agreement and Escrow Instructions. Renter receives an e-mail from First American Title with a link to the agreement started by the owner. Renter reviews and completes application information and submits to First American Title. First American Title contacts both parties to collect a non-refundable escrow fee from each. The renter also pays 50% of the rental fee as a deposit if more than 60 days remain before check-in, or 100% of the rental fee if there are fewer than 60 days before check-in. 60 days prior to start of vacation, renter makes final 50% payment to First American Title, if not paid in full upon opening of escrow. First American Title sends a check to the owner approximately 11 days after the last day of the rental period, provided there are no material disputes filed by the renter. Complete service terms are included in the Rental Agreement and Escrow Instructions.

Open an Order: Get started with the online application process now.

If you prefer to use paper forms and mail or fax to First American Title, they are included below.

Agreement and Escrow Instruction: filled out by both parties individually. Credit Card Authorization: filled out by both parties individually only if paying by credit card. First American Title Insurance Co.'s Contact Information: Transfer/Rental Department Phone: 866-639-9203 (toll-free from U.S. only); 702-792-6863 (outside U.S.) Fax: 866-325-5708 (toll-free from U.S. only); 702-562-9760 (outside U.S.) E-mail Transfer Department

Why First American Title? First American Title Insurance Co.'s National Vacation Ownership Division (NVOD) is part of the First American Corporation, a Fortune 500 Company that has been in existence over 100 years. Our specially trained staff is just one of the many reasons First American Title Insurance Co. is an innovator in the vacation ownership industry. We understand the unique needs of the timeshare/fractional customer.

First American Title Insurance Co. acts as escrow holder and orchestrates obtaining signatures for the Rental Agreement and Escrow Instructions, collecting the deposit and final payment from the Resort Guest, disbursing the payment to the Owner based on the agreement and, when applicable, coordinating the disbursement after RedWeek.com determines results of any complaint. You can have peace of mind knowing that your monies will be held in trust by First American Title Insurance Co.'s National Vacation Ownership Division.

Thanks for your response. I don't like the fact that this third party company will hold my money until the vacation is over. Doesn't seem right. They should at least give you 50% of total rental fee when the reservation Number is confirm for the unit. What is rentor chnges her mind, then I loose the money, right?

The escrow service holds the entire rental fee so you would not lose any money should she back out.

lesb15 wrote:

Thanks for your response. I don't like the fact that this third party company will hold my money until the vacation is over. Doesn't seem right. They should at least give you 50% of total rental fee when the reservation Number is confirm for the unit. What is rentor chnges her mind, then I loose the money, right?

If the renter back outs, 50% probably is not enough to cover the MFs. And the owner could be stuck with a unit since there is less than 60 days until check-in, so you there may be difficulty renting or exchanging.

There could've been other renters willing to pay 100% and now this income is lost.

Have any of you owners ever use First American Escrow Company? Any good or bad reviews?

As a very nervous 1st time renter, I am interested in the escrow service. The escrow would cover me from scammers from what I can tell. Since the renter gets no $ until 11 days after the vacation, I would have ample tim eto stop the payment and file a complaint of I went to teh front desk and found out they never heard of me. For where I am looking, the price of the escrow would be a drop in the bucket. A previous poster said the cost of escrow would make it just as easy and cheap to rent direct from hotel. This is not the case in my situation. Regular 1 bedrooms at Haborside Resort at the Atlantis (Bahamas) run over $600-800 a night for summer. Standard hotel rooms there run $400-550 a night. I am looking at rates on RedWeek for $207-325 a night for the 1 bedroom condos. I'd pull the trigger right away if I felt safe about it. If fact, I think I might offer to cover the entire price of the escrow myself just to for piece of mind if I choose to rent from a person on this site. I just have no trust for folks selling wares on the net. I've been ripped off on Ebay a few times ... I've had my CC compromised two times online... and you see horror stories on any forum you check of folks who lost thousands and ruin a vacation. It is a dangerous world online. From a renter's viewpoint, I can't believe that anyone would rent w/o some sort of escrow protection. To be honest, I am even a tad worried WITH escrow! I know zippo about timeshares, except for my co-workers who grip about their timeshare fees and how they wish they'd never enrolled.

John you are right about the cost difference for Atlantis. You are staying in one of the highest price timeshares.

I'm the one that posted about renting direct from the resort in many cases because of safety and many owners asking for to much money to start with so difference not that much.

You mention couple reasons of why many owners will not rent to you if escrow included no matter who pays it.

I know many owners are using the rental fee's for their vacations or maintance fee's or other uses and will not wait for two weeks after renter has their vacation to get the money. It is even harder for a owner of a resort that everyone wants and they will not waste all that time waiting for the money.

Another important reason and I don't mean you but you brought it up in your post. There are scammers who own but there are also scammers who rent and will try and screw the owners after enjoying the timeshare.

There have been many stories on these forums from a renter that wouldn't leave the unit after the week or renters enjoy their week and then leave day early and complain of major problems and reason they left early and want their money back and many other possible excuses just to get the money back. I read one last year that after five days this lady complained of smells on carpet,of coarse it took five days and resort sprayed even though they smelled nothing.

You stated that what if you show up and you have no reservation in your name. First you get proof from owner that they are the owners and have your week to rent. This is simple as a copy of the reservation for that years use showing its in the persons name. This can be faxed or mailed to you with a contract for you to sign and pay the fee.

Many owners want half the rent now with signed contract and final pay payment with proof of reservations.Also owner in most cases will state no refunds because in this rough time many renters will rent a timeshare then watch for better deal as dates get close and want to cancel or restructure the rent so many owners have to play hard ball and will not refund the money or cancel your reservations.

Always be sure you are going before paying your fee.

Next owner calls resort and puts reservations in your name and has paperwork from resort stating everything in your name. Owner should send this to you with resort phone number and maybe name of person in the office so you can verify this information yourself. You should already have the owners address and phone number and talk to them about your agreement. Only after all this do you send final fee's to the owner.

You need to remember that you are saving a bundle of money as long as things go right and this is reason for renting from a owner.

If you do not feel right about this owner then you should just forget it and like I said rent from the resort and spend the extra money.

Remember this is a two way street and owner doesn't know you any better than you know him so trust has to be on both sides of this deal.

Hope this helps! PHILL12

I am an owner and trying to rent for the first time. I would like to know if anyone has had an issue with getting the timeshare resort to switch the reservation to anothers name? Is this what the Escrow papers help cover? I have read through the other responses, but want to make this as smooth for me as for a potential renter. Does this Escrow cover our butt if the renter goes in and trashes the unit? I just would like a little guidance and advice on what is the best route to go.

sanchia1 wrote:

I am an owner and trying to rent for the first time. I would like to know if anyone has had an issue with getting the timeshare resort to switch the reservation to anothers name? Is this what the Escrow papers help cover? I have read through the other responses, but want to make this as smooth for me as for a potential renter. Does this Escrow cover our butt if the renter goes in and trashes the unit? I just would like a little guidance and advice on what is the best route to go.

I have never dealt with a escrow company but my understanding is they only hold the money for the owner until renting week completed and then issue funds.They are nothing more than holding company to make renters feel safe renting a timeshare and for this they make money from the renter in most cases.

Your resort will change your reservations week or add someone you have rented to and most will send new reservations to the renter as proof. If not then owner has to send it to the renter who should not only call reservations dept to verify but take reservation notice with them to check-in.

I would also advise them to double check reservations couple weeks from checkin in case of some kind of error.

As far as damage you will have the resonsibility to pay what ever renter did not pay. Renter will need to give credit card information at checkin time and this should cover most damage.

Owner should have this information of renter needing credit card at checkin on the contract and fact they wll be charged for damage or missing items they take.

As a owner you need to understand your trying to make some money but also you are taking a chance. You are renting to someone you do not know and sometimes it cost more than you make.

Some owners rent and clear very little and one problem could cost owner money. Renting to many owners just not worth the trouble and hassles that are involved.

PHILL12

sanchia1 wrote:

I am an owner and trying to rent for the first time. I would like to know if anyone has had an issue with getting the timeshare resort to switch the reservation to anothers name? Is this what the Escrow papers help cover? I have read through the other responses, but want to make this as smooth for me as for a potential renter. Does this Escrow cover our butt if the renter goes in and trashes the unit? I just would like a little guidance and advice on what is the best route to go.

IMO, the only benefit of escrow is to protect a renter from an unscrupulous owner, or someone who purports to be an owner. The owner will get the 50% deposit if the renter cancels, but often this is "too little, too late" as the renter is not in default until within 60 days of check-in. By this time an owner may have trouble re-renting the unit.

There is nothing the Escrow company can do if a resort will not change a reservation, so i would ask you resort for their policies. My resorts wanted a letter indicating the name of the other party.

Copies of the reservations and/or confirmations are sent by the owner to the Escrow company.

Thanks for the help. I appreciate the advice and still hoping for someone to rent my listing! hahaha