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reebop

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Reply with quote  #1 
About a month ago we came across a private listing on "South Seas Timeshares" for week 49 for sale at Plantation Bay Villas.  This is the exact week we've been looking for, the price was right, and unit was too good to pass by.  We contacted the owner, did an email "handshake," and agreed to buy their unit.

Captivated suggested that I detail the purchase process for everyone.  Basically, it couldn't be easier.

The entire transaction was administered by Becky Anderson at Stewart Title.  Their/her information is as follows:

Becky Anderson
Stewart Title
1648 Periwinkle Way, Suite A
Sanibel, FL  33957
Phone:  (239) 472-8228
Fax:  (239) 242-2724

After I contacted the seller, they contacted Becky who drew up all of the sales documents.  The process then bogged down for a month while Stewart Title waited for HGVC to provide them with the "Estoppel Letter."  From what I gather this is basically HGVC saying that everything is A-OK between them and the owner and the unit can be sold.

Once Becky received the letter from HGVC she forwarded the following to the seller and myself:
  • Instructions for wiring the funds to Stewart Title
  • The HUD Settlement Statement listing costs and cost disbursements - basically our bottom line.
  • A one page "Compliance and Tax Proration Agreement" - a document defining who pays property taxes, condo assessments, etc.  All of this very basic on an interval.
  • The "Warranty Deed."
  • (Owner's) "Affadavit To Debts, Liens and Possession."  This was signed by the owner basically certifying that the property is free and clear.
  • The "Commitment Letter" and a copy of the "Estoppel Letter from HGVC.
Out of all of this we had to sign 3 documents, fax them to Stewart Title, and fill in our home address on the warranty deed.

I faxed the documents yesterday morning, wired the money yesterday afternoon and the this morning received an email from Becky saying, "we are closed and disbursed!!

So, it's a done deal.

Basically, this was an effortless transaction.  Becky did everything.  All that was needed from the seller and from us was a few signatures and of course, the money.   Closing costs were about $800.00 which we split with the seller.

I was pretty amazed at how simple this process is.  If you want to sell your week or pick up another and you can find a private buyer or seller, this is the way to go.
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kenzie

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Reply with quote  #2 
That is so helpful.  Thank you!

I wounder if a weeks rental is the same process...an extra $400 fee would seem unreasonable.  If one goes direct to owner how do they have assurance on the money and how does the renter get assurance that the rental week for that week is assured.

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suziq45

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Reply with quote  #3 
Kenzie - I've rented out three units so far this year without any problem. I use Hans' site, RedWeek.com and MyResortNetwork.com.
Renters send me a deposit and I send then a confirmation. Balance is due 45 days prior to rental date. I then notify Harry on the usual reservation form.  
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reebop

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Reply with quote  #4 
Suziq45 - From what I gather, as far as HGVC is concerned, you simply have guests using your unit.  You get a deposit, then the rest of the money prior to the date, and notify HGVC who will be using your unit.
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DonFromSLC

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Reply with quote  #5 

We've rented out our units in the past and had no problems, as described.  Our renters trusted us and that we truly owned the unit and were able to rent it.  I could imagine a possible renter wanting to be certain that the deal was on the up and up before sending a deposit and in that case, I would hope that Harry's office would be willing to confirm that the you owned the unit and had the right to rent it out on your own. 

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captiivated

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Reply with quote  #6 
TRUST seems to be the operative word., when renting. If I understand the chronology of the rental process it goes something like this.

1. The owner puts his unit week up for rent..
2. The prospective renter for that unit week emails a bid.
3.  Assuming that bid is accepted the renter makes a good faith deposit to the owner.
4. An email  from the owners indicating that  HGVC is advised that the renter will   occupy their unit week providing the balance is received 45 days before the rental..
5. A final payment by the renter is issued to the owner.
6. The owner confirms the transaction with the renter and HGVC. and SSIR.

Is this about right?  The problem is the Owner has the money and there is no contractual confirmation that when you arrive there won't be three families seeking the same unit. 

Just my thoughts,

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reebop

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Reply with quote  #7 
Coincidentally I just completed our arrival information sheet and faxed it to HGVC regarding our upcoming stay at PH.  One of the check boxes is:

"I will not be using my unit but the following individual(s) will:"

There is then a space for the name, address, and telephone of the party who'll be using the unit.

It's logical that this is where you'd fill in the name of the renter and HGVC would not only be notified but they'd then notify the resort.  It doesn't seem like anything else is required.

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captiivated

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Reply with quote  #8 
 Thanks, that makes great sense and is really helpful..
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captiivated

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Reply with quote  #9 
Note, if you use HGVC the attached is the contract...what their slice is I don't know.

http://www.hgvc.com/thecottages-southseas/pages/Rental%20Contract%208_09.pdf
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captiivated

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Reply with quote  #10 
I should have read my own posting more carefully...HGVC's slice on a rental arranged by them is 30% to 35%.  Nice business!  Go direct!
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suziq45

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Reply with quote  #11 
I don't notify Harry until the rental is paid in full. Unfortunately, it's not unusual for a renter to back out and never send a deposit or balance due. Best to be safe than sorry. 
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captiivated

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Reply with quote  #12 
Seems like a good idea, but what deposit do you require to hold the rental reservation?  If the rental is say $1000 do you ask for say $100 to hold the reservation?  I agree, don't notify Harry until the rental is fully paid but, is that weeks or months before the renter is to take possession.?
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reebop

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Reply with quote  #13 
If you rent through HGVC it would seem your ultimate revenue just about covers your taxes and maintenance fees on the week.
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CaptivaBound

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Reply with quote  #14 
Only problem is HGVC does not guarantee the rental of your unit, as Mariner once did.  I don't know what kind of success rate HGVC is having renting units.  In fact, they will take a few days rental of a unit, which then clearly doesn't cover the maintenance/tax costs. 
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suziq45

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Reply with quote  #15 
Captivated - the deposit is usually one third to one half of the rental price. It has to be substantial to avoid last minute cancellation. 

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