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Closing Costs
Westar Vacation Sales has been able to contract with outside licensed companies to provide escrow services, title insurance and to arrange for the recording of your deed with the County Recorder's Office.
Buyer's share of costs for escrow, recording and a policy of title insurance total $395. Buyer is also responsible for HOA transfer fee of approximately $100.
Escrow Q&A
Q:
What do Escrow Companies do?
A: Escrow companies process the paperwork for real estate
transactions.
Q:
Are Escrow Companies required?
A: Although not required, we recommend using their
services for all transactions.
Q:
How can I find an Escrow Company that specializes in
timeshares?
A: Your lender may provide you with their participating
Escrow Company information. You may also send us an
E-Mail and we will be happy to assist you. E-Mail
THE
NEED FOR AN ESCROW
WITH A TIMESHARE RESALE
The typical seller of a timeshare does not want to see their net proceeds from the sale reduced by paying needless fees to third parties. The buyer does not want to see his total investment increased by spending money for 'add-ons'. It it therefore sometimes difficult for the buyer and seller to recognize that the fees paid to an escrow are really like an insurance premium to make sure that the transaction is closed as it was planned to be and to confirm all of the important facts with the appropriate third parties.
Every seller and the buyer should distinguish between "Closing Costs" and "Escrow Fees". Closing costs are the fees and charges that must be paid, regardless of whether or not an escrow is used, in order to effectively transfer the ownership, e.g. the recording fees for the new deed, the transfer fees charged by an association or its management company to transfer the ownership on the records of the association, the splitting of current real estate taxes, etc. Escrow fees are fees which are paid to an Escrow Company to process the closing and to make sure that both seller and buyer get the transaction closed as they had planned with the Escrow Company making contact with all appropriate third parties and usually preparing all documents to accomplish this objective.
The buyer should not want to part with the purchase price unless title has been conveyed to the buyer free and clear of all liens, the timeshare association acknowledges that there are no unpaid assessments or liens against the timeshare, the deed from the seller has been signed and notarized by all persons claiming an interest in the property (e.g. the estate of a deceased spouse) and thereafter recorded, the real estate taxes have been paid, old mortgages have been released, etc. On the seller's side, the seller will not want to record a deed to a buyer unless the seller is sure that the purchase price will be paid promptly. By using a licensed Escrow Company that is regulated by the State, the need for relying on the honesty of a stranger on the other side of the transaction is eliminated and the need to rely on the diligence of a friend who might be on the other side of the transaction ceases to exist. As a practical matter, most people are not equipped to prepare the documents that are necessary to transfer title on the public records or the records of the timeshare association, check and compute the shares of taxes, order title policies and get the necessary lien releases of old mortgages, etc.
It is important to remember that an Escrow Company does not directly check the title or ownership on the public records and that this service is provided by a title insurance company.
The cost for escrow services varies widely, often depending on whether or not the Escrow Company is experienced and competent in closing timeshare transactions. As a general rule, a State regulated Escrow Company (which is the only type that should be used) will generally charge between $350 and $500 for their services in a timeshare sales transaction. Depending on the negotiations between buyer and seller, these costs are generally split evenly between the buyer and seller. By using a licensed Escrow Company, the buyer is assured that when the money is spent, the buyer has received the benefit of the bargain and the seller is assured that all of the details have been satisfied, thereby eliminating future conflicts with the buyer that might degenerate into litigation.
- WPG
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