Hawaii Timeshare Division in Divorce Two Step

A Hawaiian timeshare awarded to one spouse in a divorce must have the non-owning spouse removed as owner. Removal is a two-step process; documents are first filed with the State of Hawaii and then with the resort management company.

Until one spouse is removed from title, both spouses will have access and use of the timeshare even after separation or divorce. Both are also responsible for the maintenance fees and property taxes. Until the former spouse is removed from title, the owning spouse cannot sell or transfer the timeshare and the former spouse will inherit the timeshare in the event of death. 

Maintaining an accurate, timely and permanent record system of timeshare ownership is the responsibility of the State of Hawaii Bureau of Conveyances. Ownership change is by deed. A deed is an 8 ½ by 11 inch document.

The contents and format of the deed are strictly mandated by Hawaiian law. Any deviations can cause the deed to become invalid.

For instance, no wording may appear on the top three inches of the first page. On the first page the tax map key, internal control number and reference to the prior recorded document must appear. In the document, the legal description must also be provided.

In Hawaii a deed must have attached to it Form P-64B, ‘Exemption from Conveyance Tax.’ Hawaii collects a transfer tax on all filings or recordings with the Bureau of Conveyances. But there are exclusions. Transfers due to divorce and dissolution of marriage are exempt from transfer tax. To obtain the exclusion, either the Grantor or the Grantee completes Form P-64B, ‘Exemption from Conveyance Tax’ and submits the form with the quit claim deed.

Once the quit claim deed has been recorded with the Bureau of Conveyances, it is returned by the Bureau with proof of recording. The owner must then provide the recorded deed to the resort management company in order to update the account records for reservations, accounting and billing. The resort management company may have its own forms to complete and may also charge a fee to update their records.

Service to prepare and record the deed is available at Deed and Record

Deed and Record is an online service to prepare quit claim deeds for real property transfers into or out of trusts, remove former spouses and gifting. Deed and Record does not offer legal advice or services.

Posted on Feb 19, 2014

Sham Corporations

Sham Corporations “buy” the timeshare from the timeshare owner. But instead of the timeshare owner receiving money, the timeshare owner pays the Corporation to take over ownership of the timeshare. The sham organization is established only for the purpose of owning timeshares to avoid maintenance fees.

The timeshare is owned by the Corporation. The timeshare resort management company goes after the business entity and is unable to collect any money from an individual. There is no individual to send threatening letters, or make harassing phone calls for collection. The timeshare sits in limbo.

The more creative brokers of these Sham Corporations will contact the resort management company to sell them the timeshare. It may be better from the resort’s point of view to take back ownership and sell to someone else than to have at timeshare sit in limbo without receipt of the maintenance fees.

Many resort management companies will no longer accept transfer of ownership to a business entity such as a Corporation, or Limited Liability Company. They continue to hold the prior individual owner responsible for the maintenance fees.

Deed and Record offers an alternative with genuine, bona fide gifting to friends and relatives. For more information on Deed and Record please go to www.DeedandRecord.com

 

Posted on Jan 29, 2014

Timeshare brokers

Timeshare Brokers

The timeshare broker does not work on a contingency but charges an upfront fee. The fee is paid even if a buyer is not found. The timeshare broker may use his or best effort s and have the most honest intentions to sell the timeshare, but if there is no market and no one willing to buy, then the timeshare will not be sold and the money paid upfront is lost. This adds to the ongoing costs to the owner.

 

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Posted on Jan 29, 2014

Californians owning Hawaiian Timeshares

Californians have many options to sell their Hawaiian timeshares, but have limited options to change ownership or title due to divorce, to gift, to fund a trust or for post-death trust administration. DeedAndRecord.com is an independent service for quit claim deeds to change ownership or title of timeshares in Hawaii without using escrow, title insurance or probate.

Californians with timeshares in Hawaii need to change how title is held in divorce, to fund into a trust, to transfer to heirs or beneficiaries out of trust and for gifting to friends or relatives. Complete service is provided at DeedAndRecord.com.

 

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Posted on Jan 14, 2014

What We Do

Deed and Record does it all to fund timeshares into a trust. Service includes:

• Title search to determine the precise legal description of the timeshare

• Research to determine how title is held

• Preparation of the quit claim deed for signature

• Preparation of transfer tax exemption reports to keep the deed free of transfer tax and property tax

• Document filing with Hawaii’s Bureau of Conveyances

 

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Posted on Jan 14, 2014

Form P-64B, Exemption from Conveyance Tax Explained

Form P-64B, Exemption from Conveyance Tax Explained

The State of Hawaii collects a transfer tax on all filings or recordings with the Bureau of Conveyances. But there are exclusions. Transfers in and out of a trust are exempt. To obtain the exclusion, either the Grantor or the Grantee completes Form P-64B, ‘Exemption from Conveyance Tax’ and submits the form with the quit claim deed.

 

Posted on Jan 14, 2014

Fund Hawaiian Timeshare into Trust

Quit claim deeds can be used to fund trusts and avoid probate. Hawaiian timeshares not owned or titled in a trust are at risk for probate. A timeshare must be transferred into trust while the person is still living. A quit claim deed works to fund a trust because no real change in ownership occurs. What is changed is how title is held.

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Posted on Jan 14, 2014

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