[WSBARP] Time Share Liability

[Eric Nelsen]

For pre-date-of-death fees, certainly. For post-death accruals, though, if they want to pursue the heirs on the basis of RCW 11.04.250, I don't think the creditor claim process is a bar.

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: Wednesday, July 17, 2019 1:41 PM
To: WSBA Real Property Listserv
Subject: Re: [WSBARP] Time Share Liability

Creditors' claim process needs to be followed, methinks.

Roger Hawkes, WSBA 5173
Hawkes Law Firm, P.S.
19944 Ballinger Way NE, Suite #100
Shoreline, WA 98155
And 423 Main in Sultan, WA 98294
www.hawkeslawfirm.com<http://www.hawkeslawfirm.com/>
206 367 5000 Office
206 367 4005 Fax



From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> <wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com>> On Behalf Of Eric Nelsen
Sent: Tuesday, July 16, 2019 10:37 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>>
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> [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<mailto:wsbarp-bounces at lists.wsbarppt.com> <wsbarp-bounces at lists.wsbarppt.com<mailto: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<mailto:jeff at bellanddavispllc.com>>; 'WSBA Real Property Listserv' <wsbarp at lists.wsbarppt.com<mailto: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> [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<mailto:info at bellanddavispllc.com>
www.bellanddavispllc.com<http://www.bellanddavispllc.com/>

The information contained in this e-mail message may be privileged, confidential, and protected from disclosure. If you are not the intended recipient, any dissemination, distribution, or copying is strictly prohibited. If you think that you have received this e-mail message in error, please e-mail the sender at info at bellanddavispllc.com<mailto:info at bellanddavispllc.com>  or call 360.683.1129

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