Deed and Record: Real Estate Title Transfer and Recording Service
Mark W. Bidwell, Attorney at Law
4952 Warner
Suite 235
Huntington Beach, CA 92649
ph: 714-846-2888
Mark
When to use a deed for a California timeshare:
- Transfer into a trust
- Add spouse as co-owner
- Remove spouse as co-owner due to divorce or dissolution of marriage
- Add or remove a joint tenant
- Give away a time share
- Post death transfers out of trust
Right of First Refusal and Unpaid Loan Balances
Current owners of a timeshare in California may want to add or remove co-owners of the timeshare or sell the timeshare. Most resorts will not accept a change in ownership if a loan balance remains outstanding on the timeshare. In the case of a sale, the resort may exercise its right of first refusal. This article examines the underlying problem associated with ownership change of a timeshare which has low fair market value.
Most often the purchase of a timeshare from a timeshare company is financed by a mortgage secured by the timeshare. Timeshares are purchased with an optimism of the value that greatly exceeds the resale value. The result is an asset with a market value substantially less than the loan balance. As a practical matter no ownership change can occur as long as there is an open loan with an outstanding balance because refinancing options are not available and few people will want an underwater asset.
The only ownership change with an outstanding balance that could be acceptable to a timeshare company is a transfer to a trust. An owner changing title out of his or her name to himself or herself as trustee of his or her living trust has not changed ownership. What has changed is how the timeshare is owned.
The outstanding loan balance hinders change of owners in the resale of a timeshare. The low market value does not allow for financing by the buyer. The buyer would have to assume the loan which is greater than the value of the timeshare. As a result, a resale market does not exist until the loan is paid off. Then the issue of right of first refusal could come into play.
Many timeshare sales contracts have a right of first refusal. The low resale value comes into play here. The sales price will be pennies on the dollar of the original purchase price. The timeshare company may want to purchase back the timeshare at the lower price. To the seller, this will not make any difference as long as he or she has a buyer. But a lot of time and energy will have been expended by the first buyer.
Prior to any change in ownership, it is an excellent idea to obtain prior approval from the timeshare company as long as there is an outstanding loan balance. This includes adding or removing co-owners, transfers due to marriage or divorce. Even if approval is obtained removing a co-owner of a timeshare with an outstanding balance does not relieve him or her of the obligation to payoff the loan.
If a timeshare owner has died and there is an outstanding loan balance it is probably best to let the timeshare company foreclose and take back the timeshare. But if the balance is paid off, an heir may want the timeshare. If that is the case the process for transfer depends if the timeshare is owned by a trust or not.
Trusts are created to avoid probate court. But the county recorder’s records must be updated. The updates are made with two documents, an affidavit death of trustee that identifies the successor trustee and a deed signed by the successor trustee changing ownership out of trust to beneficiary/heir
Even if the timeshare is not owned by a trust the low fair market value of a timeshare is helpful in this situation to avoid probate. California law has a shortcut, or expedited probate procedure for real property with a market value less than $50,000 known as “Affidavit re Real Property of Small Value.” No court hearing is needed. A lot of paper work is involved. But it is manageable.
Ownership change and modifications of California timeshares are by deed recorded with the County. But the deed may be rejected by the timeshare resort if an outstanding balance remains or if the resort has the right of first refusal. The major problem is the loan balance will exceed the value of the timeshare and refinancing is not available.
This article is provided by Mark W. Bidwell, a licensed California attorney. Office is 4952 Warner, Suite 235, Huntington Beach, CA 92649. Telephone is 714-846-2888. Mr. Bidwell markets through a website, www.DeedandRecord.com. Email is Mark@DeedandRecord.com.
In California timeshares are also referred to as “Time-share estates” “time-share interests,” “time-share properties” and “time-share plans.” “Time-share plans may be; single site, multisite, specific interest,” or nonspecific interest,”
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Timeshare Resorts in California
4 Seasons at Desert Breezes (2512)
5 Night-Mammoth Lake (6852)
5 Night-Squaw Valley Resort (6855)
Adriatic Villa (3036)
Americana Village (0485)
Aquamarine Villas (1207)
Azure Sky Resort (0483 AZR)
Beachcomber Inn (BIM)
Blue Whale (1099)
Brockway Springs Resort (2298 BRY)
California Vacation Club - Vista Mirage (2501 VSV, VSM)
Capistrano Surfside Inn (3020 CSI)
Capri by the Sea at San Diego (0503 CSE)
Carlsbad Inn Beach Resort (1285)
Carlsbad Seapointe Resort (3987)
Casa de la Playa (0546)
Casitas del Monte (1531 CMO)
Channel Island Shores (0767 CHL)
Cimarron Golf Resort (5420)
Club Donatello (1755 CLD)
Club Intrawest-Palm Desert (6413 IPS)
Club Trinidad (1096)
Coronado Beach Resort (2885)
Desert Breezes Timeshare Resort (1142 DBR)
Desert Isle of Palm Springs (0764 DPS)
Desert Vacation Villas (5097)
Diamond Resorts - Lake Tahoe Vacation Resort (prev Embassy Vacation Resort) (4066 EVR)
Diamond Resorts - Lodge at Lake Tahoe (1101 LLT)
Diamond Resorts - Marquis Villas Resort ( prev. Sunterra ) (PSS)
Diamond Resorts - Oasis Resort ()
Diamond Resorts - Red Wolf Lodge at Squaw Valley (HBC)
Diamond Resorts - RiverPointe Napa Valley (NPV)
Diamond Resorts - San Luis Bay Inn (2339 SBI, SBH)
Edgelake Beach Club (0746)
Four Seasons Pacifica (0340 FSP)
Four Seasons Residence Club Aviara / Park Hyatt Aviara (FSA)
Gaslamp Plaza Suites (3032 GSL)
GEVC at Lighthouse Pointe (8771)
Global Exchange Vacation Club at Vista Mirage (6905)
Grand Hyatt San Francisco (C170)
Grand Pacific MarBrisa Resort (8774)
Grand Pacific Palisades (5362)
Harbor Vacations Club (HAR)
Harbortown Point Marina Resort & Club (4042 HTP)
Heavenly Valley Townhouses (0688)
Heidelberg Inn (2479 HII)
Highlands Inn, A Hyatt Vacation Club Resort, The (HYI)
Hyatt Northstar Lodge ()
Indian Palms Intervals (0892)
Indian Palms Vacation Club (0177)
Indian Wells Condoshare (0309)
Inn at Silver Lakes, The (1371 ISL)
Inn at the Opera, The (7668 INN, IN1)
Jackson Court City Shares (0548)
Lagonita Lodge and Lagonita Lodge II (2657 LAG, LII)
Laguna Shores (0248 LGS)
Laguna Surf (0985 LAS)
Lake Arrowhead Chalets (2084)
Lawrence Welk Resort Villas (1540 LWR)
Lawrence Welk Resorts Mountain Villas (WMX)
Lawrence Welk's Desert Oasis (2318 DEO)
Manchester Grand Hyatt ()
Mandalay Shores Resort (1781 MDL)
Marriott Grand Residence Club, Lake Tahoe (MGA, MG1, MG3, MG5)
Marriott's Desert Springs Villas (2099 MDS,MPD)
Marriott's Newport Coast Villas (NCV)
Marriott's Shadow Ridge (MRD)
Marriott's Shadow Ridge Enclaves (MR2)
Marriott's Timber Lodge (MML)
Mountain Club at Kirkwood, The (MCK)
Mountain Retreat (5007)
Nob Hill Inn (0824 NHI)
NorthBay at Lake Arrowhead (6940 NBA)
Olympic Village Inn (0916 OVI)
Pacific Grove Plaza (5179 PGP)
Palm Canyon Resort and Spa and Monarch Grand Vacations at Palm Canyon (RIS, MPS)
Palm Springs Tennis Club (0508 PSP)
Palm Springs Villas (WCT)
Paradise (0078)
Peacock Suites Resort (4029)
Pine Acres Lodge (0455 PNA)
Plaza Resort and Spa, The (2524 CPH)
Powell Place City/Share (2980 POW)
Rancho Mirage Vacations (RMI)
Red Wolf Lakeside Lodge (3991)
River Grove Chalets (6273)
Riviera Beach and Spa Resort I & II and Monarch Grand Vacations (RBC, RBS, MBS, MBI)
Riviera Oaks Resort and Monarch Grand Vacations at Riviera Oaks Resort (ROK, MOK)
Riviera Shores Resort and Monarch Grand Vacations at Riviera Shores Resort (RSR, MRH)
San Clemente Cove (3008 SCL)
San Clemente Inn (0511 SCI)
San Diego Country Estates (0062 SDC)
San Francisco Suites (SFS)
Sand Pebbles (5096)
Sands of Indian Wells (0500)
See the Sea at San Diego (2665)
Shared Ownership Interest at Kingswood Village (KGS)
Shared Ownership Interest at Tahoe (SOT)
Shared Ownership Interest at Tahoe Lakeview (TLK)
Shell Vacations Club at Peacock Suites Resort (6093)
Shell Vacations Club at The Donatello (5850)
Shell Vacations Club at Vino Bello Resort (7917)
Silver Lakes Vacation Club (1408)
Snow Lake Lodge (0658 SNO)
Southern California Beach Club (1379 SOC)
Squaw Valley Lodge (1900)
Stallion Springs Resort (5546)
Stardust-Tahoe (0515)
Suites at Fisherman's Wharf, The (SFW, SW1)
Sun Dunes Villas (SDV)
Tahoe Beach & Ski Club (0924 TSK / TS1)
Tahoe Sands Resort (0465)
Tahoe Seasons Resort (2627 TSR)
Tamarack Beach Resort (1240 TAK)
The Villas at Disney's Grand Californian Hotel & Spa (DV10)
Vacation Internationale - Oasis Villa Resort (OAS)
Vacation Internationale - Oceanside Marina Inn (MNA)
Villa L'Auberge (3007 VLA)
Villa Mykonos (5540)
Villas of Gold Mountain (VGM)
Villas of Palm Springs, The (0581)
Villas On The Greens At The Welk Resort (5663 VLW)
Warner Springs Ranch (WSR)
Wave Crest (0923 WAV)
Westin Desert Willow Villas (WDL)
Westin Mission Hills Resort Villas (WMH, WM1)
Winners Circle Beach and Tennis Resort (0422 WCI)
WorldMark Anaheim (A842)
WorldMark Big Bear (4205 WBG)
WorldMark Dolphin's Cove (4907 WDD)
Worldmark Indio (8737)
WorldMark Marina Dunes (5799 WDU)
WorldMark Oceanside Harbor (7599 WOH)
WorldMark Palm Springs (3978 WPS)
WorldMark Pismo Beach (3278 WPB)
WorldMark San Diego - Mission Valley (A409)
Worldmark San Diego (A105)
WorldMark San Francisco (7733)
Worldmark Solvang ()
WorldMark Windsor - Worldmark Wine Country Sonoma County (7548 WWO)
WorldMark Wine Country Angels Camp (5489 WAC)
WorldMark Wine Country Clear Lake (4987 WCL)
WorldMark Yosemite Bass Lake (2873 WBL)
WorldMark Yosemite Northshore Estates (4049)
Wyndham Canterbury at San Francisco ()
Wyndham Harbour Lights (8562)
Wyndham Oceanside Pier Resort (A654)
The Villas of Palm Springs
Carlsbad Seapointe Resort
Tamarack Beach Resort
Marriott’s Shadow Ridge
Shadow Ridge 1, The Villages
901 Ski Run Boulevard
Heavenly Valley Townhouses
San Luis Bay Inn
San Francisco Interval Ownership
San Francisco Vacation Ownership
Riviera Oaks Resort & Racquet Club
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Questions? E-mail to Mark@DeedAndRecord.com or call 714-846-2888
Mark W. Bidwell, Attorney at Law
4952 Warner
Suite 235
Huntington Beach, CA 92649
ph: 714-846-2888
Mark