Legal Question in Real Estate Law in California
Trade timeshare for reduced timeshare Purchase
I traded two Fee Simple resorts located in Hawaii when purchasing a new Fee Simple resort in California. The two traded resorts reduced the purchase price of the new resort. A company selected by the resort is trying to sell the traded resorts and I am being told that I am still the legal owner until they are purchased and the title is transferred to the new owner. Is this true? That means any fees or resort costs, if any, for these traded resorts are passed on to me even though I was basically paid for them for the reduced purchase price. Is this a permitted way for doing business for timeshare resorts? I would think any costs incurred the traded resorts would be their responsibility. Hope you can answer this for me. Nothing has happened yet to incur costs but one of the traded resorts has yet to be sold and it has been almost a year since the purchase. Any light you can shed on this would be greatly appreciated.
2 Answers from Attorneys
Re: Trade timeshare for reduced timeshare Purchase
Your answer is probably going to be found within the four corners of the document or documents you executed and caused this "trade" to happen.
When I started reading your question, I though maybe it was going to be about a 1031(c) tax-deferral property trade, but apparently it is not; you were just getting rid of two places you didn't want for one you'd prefer, dealing probably with the same time-share operator.
Just because a document is entitled "trade" doesn't assure that title and liability pass in a 2-for-1 swap at the instant of signing. Read all the terms carefully.
By the way, it is possible that you have been defrauded, if you were told that the document did one thing, and it really did another; but more often than not, someone who signs papers is assumed by the court to have read and understood the contents.
Re: Trade timeshare for reduced timeshare Purchase
You would have to read the document(s) involved very carefully. More than likely, your answer is in one of the provisions.
As Mr. Whipple pointed out,there is a possibility that you have been defrauded, but I would not worry about that at his time.
Also, it may well be that there are some discrepancies between Hawaii law, and California law. It goes without saying that I know nothing of the intricacies of the laws in Hawaii.
Reread your agreement(s) carefully, before you spend money retaining a real estate lawyer. You'll probably find the appropriate answers in your "trade" agreement(s).
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