Q. Can we use this form if we are working with a real estate broker?
A. Yes, but we would recommend that you have your broker contact us first. Your broker may have forms already created
that we can use to complete your transaction.
Q. When does the seller get paid?
A. After all closing documents have been returned by both parties, properly signed, notarized and ready for recording and
the Buyer's purchase funds have been confirmed as good, cleared funds, the net purchase price will be disbursed to Seller.
Q. How is the buyer's purchase money held pending closing?
A. The funds are deposited into a separate, non-interest bearing escrow account under the name of the Buyer. Unless Buyer's funds are delivered in the form of a Certified Check, Cashier's Check or federal wire transfer, closing does not occur until Buyer's purchase funds are cleared.
Q. Are there additional costs associated with the closing?
A. There are some small additional fees associated with the recording of the deed. Typically, a recording cost of $10-$25 is paid by the Buyer. Additionally, a nominal transfer tax may be imposed. For example, Florida imposes a documentary stamp tax on the transfer of real estate equal to 0.007 times the value of the property transferred (rounded up to the next highest $100). As an illustration, if a timeshare in Florida is purchased for $4,670.00, then the documentary stamp tax is $32.90. The transfer tax is customarily paid by the Seller. Finally, it is possible that the resort may charge a small transfer fee. It is up to the Buyer and Seller to decide who should pay this fee. Please indicate on the Order Form who should bear this charge and we'll take care of paying the resort at the time we notify them of the transfer.
A. A deed is a legal document used to transfer from one person or entity to another certain rights in a parcel of real estate. It is used in all purchases, sales, gifts or other transfers of real estate.
Q. Are there different kinds of deeds? What kind do I need?
A. There are several different types of deeds used to transfer property. The two most common are the Quitclaim Deed and the Warranty Deed. A Quitclaim Deed is a deed that simply transfers to the new owner (called the "Grantee") whatever interest in the property may be held by the person signing the deed. The signer of the deed (called the "Grantor") makes NO warranties or guarantees about the quality of Grantor's interest in the property, whether or not there are any liens against the property or whether anyone else may claim any interest in the property. A Quitclaim Deed is most often used in non-sale transactions.
A Warranty Deed, sometimes called a General Warranty Deed, is a deed that transfers all rights of the Grantor to the Grantee, but the Grantor also makes certain warranties or promises to the Grantee. These promises typically include the Grantor's promise that Grantor has the rights in the property that Grantor purports to transfer to Grantee, that Grantor has the right to convey the property, that the property is free from liens or claims of third parties, that Grantee is entitled to be in possession of the property and that Grantor will compensate Grantee for any damages sustained as a result of any claims against the property by third parties. A Warranty Deed is the type of deed most often used in ordinary purchase and sale transactions.
Q. How should I own my new timeshare?
A. You may own your timeshare in your individual name or in joint names with another. Having two or more persons as the recipient of the property, called the Grantees, requires someone to decide on how the owners should own the property between themselves. If there are two Grantees, they each may simply have an equal one-half interest in the property that either of them can leave by will to their heirs at their death. This form of ownership is called tenants in common. Alternatively, the deed may say that the property is to be owned by the two Grantees as joint tenants with right of survivorship. If this form is used, immediately on the death of one of the Grantees, the other surviving Grantee automatically owns the entire property, regardless of what the deceased Grantee's will may say. Recording the death certificate in the public records of the county of the property will provide proper evidence that the entire property is owned by the surviving party.
Q. Are there specific requirements for the content and format of a deed?
A. Yes. State law and sometimes local custom will dictate the exact requirements for a deed.
Q. What is the legal description for property?
A. The legal description for a piece of real estate is the precise description of that property contained in the public records and is derived over time through the chain of title. It is the description used for transferring the property to another. The legal description is not the street address and is not the abbreviated form of description used on the real estate tax bill for the property. A deed preparer should always use the legal description exactly as it appears in the prior deed for the property unless the property to be transferred is only a portion of or is otherwise different from the property as described in that prior deed.
Q. Is there anything unique about a transfer to a trust?
A. Yes. A transfer to a trust is unique in several ways. In Florida, the transfer should always be made to the trustees of the trust and not to “the trust” per se. This is because for the purposes of real property transfers, the trust is not recognized as a separate entity from the trustee as would be the situation, say, for a corporation and its president. The transfer document (deed) should also contain certain language concerning the powers of the trustees regarding the property. Doing so may eliminate the need to record a copy of the entire trust, a document usually containing personal information. Finally, the terms of the trust and the identity of the beneficiaries of a trust can have a bearing on whether the documentary stamp tax is due on the transfer.
A. The Grantor is the person signing the deed. This is the person who is transferring their rights in the property to another. The Grantor's name should always be shown exactly as it appeared on the deed used when the grantor received his or her interest in the property.
Q. Must a deed be recorded? What governmental agency handles recording of deeds?
A. To be legally valid, the deed is not required to be recorded although it is very risky not to do so. If the deed is not recorded, the Grantee's name (and rights) appear nowhere in the chain of title found in the public records of the county. Other parties may take actions or fail to take actions that could affect the property without a knowledge of your ownership rights. For example, the grantor may have a lien filed against all of his or her property after you receive your deed but because you have not recorded it a question arises as to whether the lien has attached to your property or not. An unscrupulous grantor may even give another deed to the same property to someone else who has no knowledge of your claim to the property. To protect the rights of the Grantee, it is advisable to properly record the deed.
In Florida, the deed must be recorded in the county in which the property is located. The agency that handles the recording is the Clerk of the Circuit Court. The Clerk's office serves many functions (not just real estate recordings) and will usually have a separate department to handle the recording of all legal documents, including deeds. Our complete Escrow Closing Service includes the proper recording of your deed.
Q. What is title insurance? Do I need it?
A. Title insurance is an insurance policy under which the title insurance company agrees to pay you for certain losses that you may suffer in connection with the title to your real estate. As with any insurance policy, there are certain exclusions and limitations. Generally, the policy will promise that (1) if a legal action occurs contesting your title to the property, the insurance company will defend the title at no cost to you, and (2) if there is a defect in your title that can't be resolved in your favor, the title company will reimburse you for the amount of your loss up to the policy limit.
Whether you need title insurance depends on the circumstances involved and your tolerance for risk. When you purchase a significant piece of real estate from someone else (like when buying a home), it is important to make sure that you are acquiring good legal title to the property. An examination of the legal history of the property should be conducted by a competent real estate attorney and a title insurance policy purchased to cover any possible defects in the title that may be hidden and not discovered during the examination of title. The cost of the property usually justifies the expenditure of additional funds for the assurance of a title insurance policy.