RedGage

When you’re transferring property on a resale market, you need to be cautious about a few things. Firstly, you need to understand what it is that you’re trying to transfer, as lot of people really do not understand what it is they’re transferring. From the buyer’s perspective, it is important that once you’ve settled in on a property that interests you, it really make sense to take a little bit of time to research about that property, look at reviews of that property and the developer. Make sure you understand their point of views, the benefits associated, the maintenance fees, so that you can make an informed buying decision.

When it comes to transferring ownership of timeshare property, it is important for all the parties involved to comprehend the different facts associated with the ownership transfer process. And the majority of these information is covered in the estoppel letter.

What is an estopple letter?

An estopple letter is the verification of actual ownership of a timeshare interval. An estopple letter is commonly used by the potential buyers to verify whether the person selling the timeshare, is indeed the actual owner of the said timeshare. The letter also help to identify whether the timeshare interval has any outstanding maintenance fees or taxes, and to determine if there are any loans against the timeshare.

What does estoppel letter covers?

The information detailed on estopple letter includes how much is being paid for the transfer of ownership and how much the new party will be paying each month or year in order to be a part of the timeshare. The information also make other members of the timeshare aware of its policy. They should know whether the benefits of ownership are worth the costs they are spending. The total assessments and payments involved are mentioned clearly in the estopple letter.

The letter also explains the information the new individual signing for the timeshare property. The buyer gets to know the details of fines, additional payments, and any other costs that individual may yet to pay, if they have overstay their allotted time  at the timeshare.

What is the benefit of estopple letter?

Using estopple letter can benefit you in several ways. The buyer can learn

• Whether the property is debt free, lien free, and not subject to use by any other entity following the date of title transfer
• There is no outstanding legal action and no consideration of such action against the donor’s interests in the property at the time of title transfer
• The original price of the property
• The donor does not hold any rights of ownership in reserve from the title transfer
• No entity or person other than the donor has any equitable interests in the property. The legal co-ownership entities and persons should signed the estopple certificate
• The donor has not filed, or subject to filing, for any bankruptcy, or nothing under federal bankruptcy laws
• The donor understands that the buyer expects to retain the ownership of the property after transfer for a minimum of 36 months, except as may be required by legal and law action, or unexpected circumstances
• Donor acknowledge that the entity or the buyer is seeking the estoppel certificate as a condition of accepting the title transfer of the property and should be satisfied to the status of donor’s understanding of rights, obligations, information, valuation and other matters of inducement the donor reviewed in determining the title transfer action.

How do you acquire estopple letter?

Estopple letter can be requested by the timeshare owner or by the authentic licensed timeshare. The letter can also be received through phone call from the timeshare owner to the timeshare resort requesting the estopple letter to be sent directly to the buyer for confirmation. In some cases, both the buyer and seller can be on the phone with the resort and confirmation can be done verbally. In some other cases, many renowned timeshare resorts have several ways to request the estoppel letter and sometimes can be generated and sent via email for convenience.

Kevin White is currently the Consumer Analyst, Manager of Customer Service, Compliance Officer and a Vice-President of Timeshares By Owner.