[WSBARP] Time Share Liability

Tue Jul 16 17:09:54 PDT 2019

What I usually tell an elderly client is “just don’t pay, but you will be dealing with collection calls”, and my experience has been that after death there are some time share companies who will file a creditor’s claim, but none have done anything within 30 days after the PR files a rejection.  And the rejection is based on whatever facts seem to work...  fair debt collection practices act, Consumer protection act; usury,? they don’t seem to want to litigate the rejection....unreasonable restraint on alienation sounds like a good one?

Joshua F. Grant

P. O. Box 619
Wilbur, WA 99185
509 647 5578

From: Eric Nelsen 
Sent: Tuesday, July 16, 2019 10:36 AM
To: WSBA Real Property Listserv 
Subject: Re: [WSBARP] Time Share Liability

Roger--I agree that should be the result; but my concern is that depending on the timeshare company, they might decide to take it upon themselves to determine who the heirs are, and then start reporting to credit agencies on the heirs' credit records. And start taking collection actions. Of course that might be in violation of Fair Debt Collection Practices Act etc. and there are likely defenses; but the entities that run timeshares appear to vary quite a bit in quality and reasonableness, so I wouldn't just assume that a particular one is going to behave well.

I have thought about allowing a real estate timeshare to go to property tax foreclosure; but I don't think it works because I think the property tax gets paid usually by the timeshare company, and then assessed against the member. Then the timeshare has an ostensible right to pursue the member in collections for unpaid amounts. In theory the company could foreclose the private lien, but why would they if they can continue to chase/harass the member for money? If they foreclose, they're stuck with the mostly-unsellable timeshare interest themselves.

Sincerely,

Eric

Eric C. Nelsen

SAYRE LAW OFFICES, PLLC

1417 31st Ave South

Seattle WA  98144-3909

phone 206-625-0092

fax 206-625-9040

From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Roger Hawkes
Sent: Tuesday, July 16, 2019 9:47 AM
To: WSBA Real Property Listserv
Subject: Re: [WSBARP] Time Share Liability

If it is a deeded piece of real estate, what happens if inheritors just don’t pay?  If they don’t take title, the default should not show up on their credit report; and default would end up in foreclosure sale; correct?

From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Eric Nelsen
Sent: Tuesday, July 16, 2019 9:26 AM
To: 'jeff at bellanddavispllc.com' <jeff at bellanddavispllc.com>; 'WSBA Real Property Listserv' <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] Time Share Liability

There have been some great conversations on the listserv in the past on this topic, but I don't remember any clear solution.

Note, some timeshares are structured as memberships in an entity, while some are actual deed conveyances of minute fractional interests in real estate, with covenants on the real estate that create the timeshare organization. What you are running into sounds like a timeshare based on deed conveyances, and the organization is taking the position that the real estate automatically passes on death to the heirs under RCW 11.04.250.

The problem I have encountered with the real-estate-based ones is, there is no actual way to "abandon" real estate. Practically our entire legal system is predicated on the notion that land is divisible and somebody owns every square inch, everywhere. The inheritance rules are designed to always pass real estate on to another person at death, so there is never a gap in title.

I have some creative thoughts (grandiose delusions) about fighting a timeshare based on unreasonable restraints on alienation: title held under such conditions as to make it effectively unmarketable forever. I've also considered doing a chain of disclaimers among the heirs and their descendants to the point where the timeshare escheats to the State of Washington, and let the State deal with it. There might also be a Consumer Protection Act claim to be made in some fashion, maybe.

Maybe the timeshare company also would take title back, if the client just conveyed to them without any cost?

Sincerely,

Eric

Eric C. Nelsen

SAYRE LAW OFFICES, PLLC

1417 31st Ave South

Seattle WA  98144-3909

phone 206-625-0092

fax 206-625-9040

From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Jeff Davis
Sent: Tuesday, July 16, 2019 8:43 AM
To: 'WSBA Real Property Listserv'
Subject: [WSBARP] Time Share Liability

Listmates,

Elderly client, in her 90’s, with money, can no longer use her timeshare in Central Washington.  We have tried three different exit services with no luck.  Timeshare knows that client has money and has indicated that when she passes her children will have to keep paying the maintenance fees.  Have any of you ever run into this problem?  Doesn’t death end the timeshare arrangement?

Jeff Davis

W. Jeff Davis, Esq.

BELL & DAVIS PLLC
P.O. Box 510
Sequim WA 98382
Phone No.:(360) 683.1129 
Fax No.: (360) 683.1258 
email: info at bellanddavispllc.com
www.bellanddavispllc.com

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