Legal Question in Real Estate Law in California
Quit Claim Deed for Timeshare
I have a timeshare that I cannot seem to sell (get rid of). I want to form a corporation that will specialize in timeshare resales, then quit-claim deed my timeshare to the corporation. The corporation will then assume all responsibility for fees, monthly payment, etc, until such time the timeshare is sold. Is a quit-claim deed an acceptable legal means to transfer a deeded timeshare interest to another party; a newly formed corporation in this case? Thank you!
2 Answers from Attorneys
Re: Quit Claim Deed for Timeshare
Answered this in the duplicate post.
Re: Quit Claim Deed for Timeshare
Before setting out to try to provide a partial answer, I have to ask you a couple of questions that might help you to figure out your own answer.
First, is your ownership of the timeshare a deeded (recorded) interest in real property, or is it only a contract right of some kind, or maybe a contract for deed?
Do the timeshare rules allow transfer of your ownership, whatever it is you own, without prior approval?
How will the corporation get the money to buy you out? Are you intending to put some capital into the corporation?
What advantage do you hope to gain from this transaction? Seems to me the bottom line will be that you pay francise taxes ($800 a year) for a corporation to do what you are already doing.
Transferring title may cause an increase in property taxes.
If you have a loan on this, the lender's approval will probably be needed.
A corporation that will engage in buying or selling real estate will need a person in charge with a California Department of Real Estate broker's license. It will be subject to all the DRE's rules regarding record keeping, escrow of funds, etc.
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