Escrow

The secure process of transferring ownership

Q: Why use the services of an Escrow Company?

A: Escrow companies provide an experienced professional service regulated by law to protect the interest of both the buyer and the seller. An escrow is the process of closing a real estate sale in which a licensed third party prepares the documents and handles the closing between buyer and seller. For the protection of buyer and seller, all funds are required to be held in a special secure trust account until closing, at which time the escrow officer disburses funds according to identical escrow instructions signed by buyer and seller. The third party handling the sale must be licensed to do so, such as a licensed real estate broker or escrow company. In the western United States, the majority of closings are handled by real estate brokers, escrow or title companies. In the eastern United States it is more common for attorneys to also be involved than it is in the western United States.

Q: Does an Escrow Company have the same legal authority to close a transaction as an attorney?

A: Yes. The same real estate laws that an attorney must follow as regarding real estate closings regulate an Escrow Company.

Q: Are there very many Escrow companies specializing in timeshare resales?

A: No. Timeshare resale's are still a relatively new phenomenon. In order to provide the high level of service we demand for our clients, we use our selected closing agencies or brokers to handle our escrow who smoothly co-ordinates the escrow processing between the buyer and seller and with all agencies involved in the transfer. Such agencies may include the title insurance company, the resort management company, tax assessor's office, co-brokers, lenders, etc.

Q: Transferring ownership of a timeshare seems simple. Is it?

A: No. Although the dollar amount of the sale is relatively small, and the escrow fee is small compared to an escrow for a house, the details involved in processing and closing a timeshare resale involve as much or more work than an escrow for a house.

Our professional escrow handles every item below, and more:

· Determining what the resort requires in order to transfer ownership, such as documents, fees, and information.

· Preparing or seeing to the preparation of all legal documents.

· Verifying every detail of the seller's ownership, with the resort management. Since sellers are often mistaken about what they own, escrow carefully verifies such details in writing with the resort to eliminate any possibility of confusion.

· Provides a real estate trust account to hold all funds until sale is closed.

· Responsibility to verify that the buyer's week is indeed available for buyer to use, i.e., that it is not banked with an exchange company or rented, or already used. This requires time consuming communication with the exchange company, seller, lender, and others.

· Getting the seller and buyer to return documents in a timely manner, properly completed and notarized.

· Getting loans and liens removed.

· Maintaining and reconciling detailed trust account records for each transaction.

· At closing, prepare and disburse checks to sellers, resorts, brokers, taxing authorities, lenders, and more.

· At closing, deliver to resort the documents, buyer information and transfer fees.

· Follow up with the resort to see that the resort has the new owner on the computer records, after the resort receives buyer information and transfer fee.

Q: What is the difference between closing costs and escrow fees?

A: Closing costs refer to all costs of closing a sale, including the escrow fee. The escrow fee is just one item of the closing costs. Closing costs are the fees and charges that must be paid, regardless of whether or not an escrow is used - such items as document preparation fees, recording fees, resort transfer fees, verification fees charged by resorts and lenders, taxes, maintenance fee late charges, special assessments, loan pay-off fees, postage or delivery charges.

800-555-1353

Ask for Mark Nayman

570-688-9220 Int'l - 570-504-2603 (Fax)

Click Here to return to the previous screen

tsresale@ptd.net

_________________________________________

All information presented is deemed accurate but cannot be guaranteed until all official resort and owner documents are reviewed. The information on this site is provided by individual property owners, marketing and ad agencies or owners associations through the Timeshare Resale Division of: Andrew Hunter Real Estate licensed Real Estate Brokerage # RB046454-L Suite #8 Merchants Plaza, Tannersville, PA 18372 USA Andrew D. Hunter, Broker, Mark L. Nayman, Associate Broker # AB 065991

FAIRFIELD | FLORIDA | HAWAII | HILTON GRAND VACATION CLUB | HILTON HEAD

INTERNATIONAL