Managing Timeshare Transactions: a Loss for Title Companies?

As those of us in the title industry know, preparing a title report takes time; plain and simple. Imagine though, if you were asked to prepare a report that covered a hundred parcels or more; and of course, you aren’t given much time to complete the report.  Sound familiar?

Well, that is exactly what happens when a timeshare developer or operator is looking to assess the condition of their timeshare intervals. When they come to you for a title report, they want to know who owns each interval and what encumbrances affect each one; and they want that information yesterday! Granted, most of the time, it’s not their fault; since interval purchasers are constantly changing, and the timeshare operator needs to know what’s available for sale. Within a particular timeshare project, this could mean hundreds or thousands of interests at a time.

From the title company’s perspective, it’s a daunting task. Having to prepare a title report for that many interests at once and under a tight time deadline is tough, especially while you’re trying to prepare other reports, conduct closings, and attend to customer questions and concerns.

Timeshare operators will often want various aspects of these reports laid out in spreadsheet format (i.e. owner names and addresses, intervals numbers, document numbers and dates), in addition to the actual title report. Why do they need this? Well, sometimes the operators need to foreclose on interval owners who haven’t been paying their loans, and they use the spreadsheet to facilitate the foreclosures.

The final straw though, is that the timeshare operator will want all of this at a “discounted” rate because of the volume they bring to the table, and any premiums you hope to make from insuring these intervals are minimal because of the low sales price each interval has.

So how does a title company take on this timeshare work and still expect to make a profit? Let HDEP help!

HDEP has the staff and experience to process large timeshare title reports. We can get the work done on time and at a cost savings to you. But more importantly, your staff will have more time to focus on higher profit business tasks, such as closings, marketing and customer service.

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