| 1. |
When does the seller get paid? |
| |
|
| |
After all closing documents have been returned
by both parties, properly signed, notarized and ready for recording
and the Buyer's purchase funds have been confirmed as good, cleared
funds, the net purchase price will be disbursed to Seller. |
| |
|
| |
 |
|
|
| 2. |
How is the buyer's purchase money held
pending closing? |
| |
|
| |
The Buyer provides the purchase price to us by
check made payable to Back Porch Timeshare Closings Escrow Account.
These funds are deposited into a separate, non-interest bearing
escrow account under the name of the Buyer. Unless Buyer's funds
are delivered in the form of a Certified Check, Cashier's Check
or federal wire transfer, closing does not occur until Buyer's purchase
funds are cleared. |
| |
|
| |
|
|
|
| 3. |
Are there additional costs associated with
the closing? |
| |
|
| |
There are some small additional fees associated
with the recording of the deed. Typically, a recording cost of $10-$25
is paid by the Buyer. Additionally, a nominal transfer tax may be
imposed. For example, Florida imposes a documentary stamp tax on
the transfer of real estate equal to 0.007 times the value of the
property transferred (rounded up to the next highest $100). As an
illustration, if a timeshare in Florida is purchased for $4,670.00,
then the documentary stamp tax is $32.90. The transfer tax is customarily
paid by the Seller.
Finally, it is possible that the resort may charge a small transfer
fee. It is up to the Buyer and Seller to decide who should pay
this fee. Please indicate on the Order Form who should bear this
charge and we'll take care of paying the resort at the time we
notify them of the transfer. |
| |
|
| |
|
|
|
| 4. |
What is a deed? |
| |
|
| |
A deed is a legal document used to transfer from
one person or entity to another certain rights in a parcel of real
estate. It is used in all purchases, sales, gifts or other transfers
of real estate. |
| |
|
| |
|
|
|
| 5. |
Are there different kinds of deeds? What
kind do I need? |
| |
|
| |
There are several different types of deeds used
to transfer property. The two most common are the Quitclaim Deed
and the Warranty Deed. A Quitclaim Deed is a deed that simply
transfers to the new owner (called the "Grantee") whatever
interest in the property may be held by the person signing the
deed. The signer of the deed (called the "Grantor")
makes NO warranties or guarantees about the quality of Grantor's
interest in the property, whether or not there are any liens against
the property or whether anyone else may claim any interest in
the property. A Quitclaim Deed is most often used in non-sale
transactions.
A Warranty Deed, sometimes called a General Warranty Deed, is
a deed that transfers all rights of the Grantor to the Grantee,
but the Grantor also makes certain warranties or promises to the
Grantee. These promises typically include the Grantor's promise
that Grantor has the rights in the property that Grantor purports
to transfer to Grantee, that Grantor has the right to convey the
property, that the property is free from liens or claims of third
parties, that Grantee is entitled to be in possession of the property
and that Grantor will compensate Grantee for any damages sustained
as a result of any claims against the property by third parties.
A Warranty Deed is the type of deed most often used in ordinary
purchase and sale transactions. |
| |
|
| |
|
|
|
| 6. |
How should I own my new timeshare? |
| |
|
| |
You may own your timeshare in your individual name
or in joint names with another. Having two or more persons as the
recipient of the property, called the Grantees, requires someone
to decide on how the owners should own the property between themselves.
If there are two Grantees, they each may simply have an equal one-half
interest in the property that either of them can leave by will to
their heirs at their death. This form of ownership is called tenants
in common. Alternatively, the deed may say that the property is
to be owned by the two Grantees as joint tenants with right of survivorship.
If this form is used, immediately on the death of one of the Grantees,
the other surviving Grantee automatically owns the entire property,
regardless of what the deceased Grantee's will may say. Recording
the death certificate in the public records of the county of the
property will provide proper evidence that the entire property is
owned by the surviving party. |
| |
|
| |
|
|
|
| 7. |
Are there specific requirements for the
content and format of a deed? |
| |
|
| |
Yes. State law and sometimes local custom will
dictate the exact requirements for a deed. Back Porch Timeshare
Closings will insure that your deed is prepared in compliance with
all state and county requirements. |
| |
|
| |
|
|
|
| 8. |
What is the legal description for property? |
| |
|
| |
The legal description for a piece of real estate
is the precise description of that property contained in the public
records and is derived over time through the chain of title. It
is the description used for transferring the property to another.
The legal description is not the street address and is not
the abbreviated form of description used on the real estate tax
bill for the property. A deed preparer should always use the legal
description exactly as it appears in the prior deed for the property
unless the property to be transferred is only a portion of or is
otherwise different from the property as described in that prior
deed. |
| |
|
| |
|
|
|
| 9. |
Is there anything unique about a transfer
to a trust? |
| |
|
| |
Yes. A transfer to a trust is unique in several
ways. In Florida, the transfer should always be made to the trustees
of the trust and not to “the trust” per se. This is
because for the purposes of real property transfers, the trust is
not recognized as a separate entity from the trustee as would be
the situation, say, for a corporation and its president. The transfer
document (deed) should also contain certain language concerning
the powers of the trustees regarding the property. Doing so may
eliminate the need to record a copy of the entire trust, a document
usually containing personal information. Finally, the terms of the
trust and the identity of the beneficiaries of a trust can have
a bearing on whether the documentary stamp tax is due on the transfer.
If your transfer is to be made to a trust, Back Porch Timeshare
Closings will insure that your deed is prepared in accordance with
these special requirements. |
| |
|
| |
|
|
|
| 10. |
Who signs the deed? |
| |
|
| |
The Grantor is the person signing the deed. This
is the person who is transferring their rights in the property to
another. The Grantor's name should always be shown exactly as it
appeared on the deed used when the grantor received his or her interest
in the property. Back Porch Timeshare Closings will include specific
signing instructions with the documents provided. |
| |
|
| |
|
|
|
| 11. |
Must a deed be recorded? What governmental
agency handles recording of deeds? |
| |
|
| |
To be legally valid, the deed is not required to
be recorded although it is very risky not to do so. If the deed
is not recorded, the Grantee's name (and rights) appear nowhere
in the chain of title found in the public records of the county.
Other parties may take actions or fail to take actions that could
affect the property without a knowledge of your ownership rights.
For example, the grantor may have a lien filed against all of his
or her property after you receive your deed but because you have
not recorded it a question arises as to whether the lien has attached
to your property or not. An unscrupulous grantor may even give another
deed to the same property to someone else who has no knowledge of
your claim to the property. To protect the rights of the Grantee,
it is advisable to properly record the deed.
In Florida, the deed must be recorded in the county in which
the property is located. The agency that handles the recording
is the Clerk of the Circuit Court. The Clerk's office serves many
functions (not just real estate recordings) and will usually have
a separate department to handle the recording of all legal documents,
including deeds.
Our complete Escrow Closing Service includes the proper recording
of your deed. |
| |
|
| |
|
|
|
| 12. |
What is title insurance? Do I need it? |
| |
|
| |
Title insurance is an insurance policy under which
the title insurance company agrees to pay you for certain losses
that you may suffer in connection with the title to your real estate.
As with any insurance policy, there are certain exclusions and limitations.
Generally, the policy will promise that (1) if a legal action occurs
contesting your title to the property, the insurance company will
defend the title at no cost to you, and (2) if there is a defect
in your title that can't be resolved in your favor, the title company
will reimburse you for the amount of your loss up to the policy
limit.
Whether you need title insurance depends on the circumstances
involved and your tolerance for risk. When you purchase a significant
piece of real estate from someone else,
it is important to make sure that you are acquiring good legal
title to the property. An examination of the legal history of
the property should be conducted by a competent real estate attorney
and a title insurance policy purchased to cover any possible defects
in the title that may be hidden and not discovered during the
examination of title. The cost of the property usually justifies
the expenditure of additional funds for the assurance of a title
insurance policy.
|
| |
|
| |
|