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.

 

Tags:
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.

 

Tags:
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

 

Tags:
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.

Tags:
Posted on Jan 14, 2014

Hawaiian Timeshares in California Divorce

In dissolution of marriages and divorces timeshares in Hawaii are awarded to one spouse. Tip Sheet by Mark W. Bidwell on how to transfer Hawaiian timeshare ownership due to divorce.

Marital settlement agreements for dissolution of marriage and divorce divide ownership of assets of the marriage between the spouses.  But the change of ownership of a Hawaiian timeshare is not complete until the State of Hawaii’s database and the resort management’s accounting records are updated.

Hawaii maintains a statewide database of who owns each timeshare in Hawaii. This database is final and conclusive. The database is maintained by the Bureau of Conveyances. The Bureau of Conveyances will only update its records upon receipt of a “deed.”

A deed is at a minimum a 8 ½ inch by 11 inch paper in a format defined by the laws of Hawaii. The deed is signed by the non-owning spouse. His or her signature must be notarized and the notary must be either on the deed or attached to the deed.

 

The deed must also include the “interval control number” and “legal description.”  The legal description for timeshares in Hawaii is most often several pages in length and uniquely identifies the timeshare.

There are two types of deeds, warranty deeds and quit claim deeds. Warranty deeds promise good title and the absence of debt and liens. Quit claim deeds convey property “as is.” Because the spouses in the divorce have established the condition and value of the timeshare in the divorce process, the best deed is the quit claim deed.  The conveying spouse is basically saying: “here is the timeshare as it is, in whatever condition it is in as we agreed in the divorce settlement.”

 

The deed must be recorded with the Bureau of Conveyances.  With the deed “Form P64B — Exemption from Conveyance Tax” must be submitted.  The Bureau records the deed and assigns a unique number and date of recording. A copy of the recorded deed is submitted to the resort management for them to update their records. The resort management may have its own forms to be completed and may charge a fee for updating their files and accounting records.

 

Until ownership of the Hawaiian timeshare is changed both spouses are responsible for the maintenance fees. The owning spouse cannot sell or transfer ownership.  On the death of the owning spouse the other spouse will inherit the Hawaiian timeshare. To make the divorce final and complete the quit claim deed must be prepared and recorded with the Bureau of Conveyances.

Posted on Dec 20, 2013

Use quit claim deeds for transfers

This Tip Sheet advocates the use of quit claim deeds to fund trusts, remove a spouse as co-owner pursuant to divorce or dissolution of marriage, and to give away a timeshare.

A quit claim deed transfers property ‘as is.’ Quit claim deeds do not contain any implied warranties of debt outstanding or good title. An owner who ‘quit claims’ real property simply conveys whatever ownership interest he or she has along with any debt or loans secured by the property. A quit claim is the easiest and cheapest way to transfer ownership between parties who personally know each other.

Quit claim deeds can be used to give away timeshares in Hawaii. Timeshares are most often gifted to children of the owners. Other owners want to gift to nieces, nephews, other relatives or friends. Sometimes a ‘gift’ occurs when the timeshare owner sells the timeshare for nominal value.  

A quit claim deed works in gifting because little or no money is exchanged and the parties know each other. Gifting may have income tax, capital gains tax or gift tax consequences. Owners are advised to consult with a tax accountant for tax consequences of gifting a timeshare by quit claim deed.

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.

Use quit claim deeds to remove a former spouse as owner of a timeshare. A timeshare awarded to one spouse in a divorce must have the non-owning spouse removed as owner. 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.  Quit claim deeds work in divorce because the parties have complete information and disclosure on the value of the timeshare and amount of debt outstanding.

Posted on Dec 20, 2013

How Surviving Joint Tenant Can Avoid Probate of Hawaiian Timeshare

On the death of surviving joint tenant a timeshare will go through probate. Deed and Record is a website for Hawaiian Timeshare owners to avoid probate.  Probate is the transfer of ownership from the decedent to living heirs under the supervision of the probate court of Hawaii.  Probate is costly, time consuming and complicated.  Often heirs unable to cope with burden and cost of probate surrender or walk away from the timeshare.

The surviving joint tenant can avoid probate. Options are; transfer the timeshare to children or relatives, add a child or relative as owner or transfer the timeshare into a living trust.

Regardless of the choice made the first step is to report the death of the joint tenant to the State of Hawaii. Reporting is done by ‘affidavit death of joint tenant.’ The affidavit is made by the surviving joint tenant. The affidavit and an original death certificate are recorded with the Bureau of Conveyances.

The surviving joint tenant can now transfer the Hawaiian timeshare to children, friends or relatives as owners by quit claim deed.  A ‘quit claim deed’ transfers property ‘as is.’ Quit claim deeds do not contain any implied warranties of debt outstanding or good title. An owner who ‘quit claims’ real property simply conveys whatever ownership interest he or she has along with any debt or loans secured by the property. A quit claim is the easiest and cheapest way to transfer ownership between parties who personally know each other.

 When transferring or adding relatives the survivor does gives up control over the timeshare. And the transfer or addition is a gift.  It is advisable for the survivor to consult with his or her tax advisor on tax consequences, if any, for gifting.

Another way for the survivor to avoid probate is with a living trust.  The trust is like a Will but avoids probate and the survivor maintains control of his or her assets. The trust identifies who is to receive the assets and who is to distribute the assets. The person who is to distribute the assets is referred to as the Successor Trustee.

To avoid probate the Hawaiian timeshare is transferred into the trust while the owner is living. The transfer is with a quit claim deed from the owner to the owner as trustee of his or her trust.  On the death of the timeshare owner the Successor Trustee files an ‘affidavit death of trustee.’

The affidavit authorizes the Successor Trustee to act on behalf of the trust. The Successor Trustee next files a quit claim deed from the trust to the heir of the Hawaii Timeshare.  All documents can be prepared in one day compared to one year for probate.

Posted on Apr 19, 2013

Timeshare Use vs Timeshare Estate

Purchasers are granted ownership as either as a “Timeshare Estate” or as a “Timeshare Use.” Timeshare Estate ownerships are granted by deed and are actual real estate ownerships.  Timeshare Use ownerships are granted by contract and the owner has a license or membership interest in the time share resort. Timeshare Use is not an ownership in real estate.

Tags:
Posted on Feb 5, 2013

How to Avoid Probate

Owners who want their loved ones to inherit the time share need to plan ahead to avoid probate. Ideally, ownership should be in the name of trust. But if the owner does not have a trust, joint tenancy is an option. To create a joint tenancy, the owner adds another person on title as a joint tenant. The person added is the heir to receive the time-share on the death of the original owner. In joint tenancy the person who dies has her or her ownership interest disappear and the survivor is the sole owner.

Normally adding a joint tenant is not a good idea. The joint tenant’s creditors and spouse have access to the property and the cooperation of the new joint tenant is needed for any sales or borrowing. As a result, the owner gives up control. But because of limited marketability and low dollar value of a timeshare the risk of loss may be outweighed by the ease of transfer.

Tags:
Posted on Feb 5, 2013

What are Timeshares?

Timeshares are fractional vacation ownership interests in a resort. The fractional interest is usually the right to occupy a one or two bedroom unit for one week, every year.  In such a situation one unit could have 52 owners. Purchasers are granted ownership as either as a “Timeshare Estate” or as a “Timeshare Use.” Timeshare Estate ownerships are granted by deed and are actual real estate ownerships. Timeshare Use ownerships are granted by contract and the owner has a license or membership interest in the time share resort. Timeshare Use is not an ownership in real estate

Posted on Feb 5, 2013

Resorts Serviced

  • Alii Kai II (ALI)
  • Alii Kai Resort (2201)
  • Aloha Beach Resort (8750)
  • Aqual Hotel – Park Shore Resort
  • Aston at the Maui Banyan – Holiday Network (7700)
  • Aston Kaanapali Shores – Holiday Network (8497)
  • Banyan Harbor (0266)
  • Bay Club at Waikoloa Beach Resort (3684)
  • Castle Kamaole Sands – Rental (8242)
  • Castle Kiahuna Plantation – Rental (8244)
  • Castle Kona Reef – Rental (8243)
  • Celebrity Resorts Waikiki (0245)
  • Cliffs Club (5124 CLF)
  • Cliffs Resort (3656)
  • Club Intrawest-Kauai (6416 BHA)
  • Diamond Resorts – Ka’anapali Beach Club (4985 EGK)
  • Diamond Resorts – Point at Poipu (3682 EPP)
  • Fairway Villa (Diamond Resorts) (0535 FRN)
  • Gardens at West Maui (TGW)
  • Grand Waikikian by Hilton Grand Vacations Club
  • Hanalei Bay Resort (HAN)
  • Hawaiian Princess at Makaha Beach (HAP)
  • Hawaiian Sun Holidays at The Waikiki Banyan (BYN, SWB)
  • High Country Club Maui Palms at Wailea ()
  • Hilton Grand Vacations Club at the Hilton Hawaiian Village – Kalia Tower (7499)
  • Hilton Grand Vacations Club at the Hilton Hawaiian Village – Lagoon Tower (5996)
  • Hilton Grand Vacations Club at Waikoloa Beach Resort (Kohala Suites) (8599)
  • Hilton Grand Vacations Club Kings’ Land Resort (7978)
  • Hololani (Vacation Internationale) (0524 HOL)
  • Holua Resort at Mauna Loa Village (Shell) (6460)
  • Hono Koa (2620 HOK)
  • Imperial Hawaii Vacation Club (2605)
  • Imperial Hawaii-World Wide Vacations Club (0961)
  • Islander on the Beach (8722)
  • Kahana Beach Vacation Club (KAH)
  • Kahana Falls (2788)
  • Kahana Villa Vacation Club (KVV)
  • Kamaole Beach Club (1287)
  • Kapaa Shore (Vacation Internationale) (0526 KPA)
  • Kapulanikai Vacation Suites (2652)
  • Kauai Beachboy Hotel (3887)
  • Ke Nani Kai (KNK)
  • Kihei Akahi (2486)
  • Kihei Kai Nani (Vacation Internationale) (0534 KIH)
  • Kona Billfisher (0029)
  • Kona Coast Resort I (2326 KOC, KSO, KO1, KC1)
  • Kona Coast Resort II (4861 KON, KOS, KOT, KSR, KT1, KS1, KR1, KN1, KT2, KT3)
  • Kona Hawaiian Resort (Wyndham) (5971)
  • Kona Islander Vacation Club (KOI)
  • Kona Reef (Diamond Resorts) (6979 KOF)
  • Kuhio Banyan Club (1297)
  • Kuleana Club (0030)
  • Lawai Beach Resort (5080 LAW, LBL)
  • Lea Casa (0279)
  • Makaha Resort & Golf Club (MGX)
  • Makai Club at Princeville (1254)
  • Makai Club Cottages (1580)
  • Marriott’s Kauai Beach Club (MKW)
  • Marriott’s Kauai Lagoons (MKI)
  • Marriott’s Ko Olina Beach Club (MKO)
  • Marriott’s Maui Ocean Club – Lahaina and Napili Villas (MM1)
  • Marriott’s Maui Ocean Club (MMO)
  • Marriott’s Waiohai Beach Club (MAW)
  • Maui Banyan Vacation Club (MBN)
  • Maui Beach Vacation Club (MBV)
  • Maui Lea at Maui Hill (0755)
  • Maui Oceanfront Inn Vacation Club (8427)
  • Maui Schooner (LMB)
  • Maui Sunset (0192)
  • Maui Sunset II (0439)
  • Mauna Loa Village by the Sea (4908)
  • MROP at Kauai Beach Villas (6050)
  • Na Pali Kauai Club (NPP)
  • Nihi Kai Villas (0451)
  • One Napili Way (ONP)
  • Outrigger Palms at Wailea – Holiday Network (6118)
  • Outrigger Waikiki on the Beach ()
  • Pacific Fantasy (2487)
  • Pahio at Bali Hai Villas (Wyndham) (3031)
  • Pahio at Ka’Eo Kai (Wyndham) (1376 PAK)
  • Pahio at Kauai Beach Villas (Wyndham) (3681)
  • Pahio at the Shearwater (Wyndham) (2638)
  • Paki Maui Beach Villas (BEV)
  • Paniolo Greens (3977)
  • Papakea (Vacation Internationale) (0533 PAP, P1P)
  • Papakea Resort (Diamond Resorts) (4074 PKK)
  • Pono Kai (Vacation Internationale) (0525)
  • Pono Kai Resort (2491)
  • RHC/Ka’Eo Kai Resort (2975)
  • Royal Aloha Keauhou-Kona/RAVC (1677 KKS)
  • Royal Aloha Vacation Club – Village By The Sea (VBS)
  • Royal Aloha Vacation Club/Waikiki (0082 WST)
  • Royal Aloha Village by the Sea/RAVC (1678)
  • Royal Hawaiian Adventure Club (0037)
  • Royal Kuhio ( Lifetime in Hawaii ) (1138)
  • Royal Kuhio (Vacation Internationale) (7575 KUH)
  • Royal Sea Cliff (Wyndham) (6939)
  • Sands of Kahana (5541 SOK)
  • Sea Mountain (Diamond Resorts) (0530 SEM, S1M)
  • Sea Village (Diamond Resorts) (0528 SEV, S1V)
  • Shell Vacations Club at Holua Resort at Mauna Loa Village (5851)
  • Shell Vacations Club at Kauai Coast Resort at the Beachboy (5852)
  • Shell Vacations Club at Paniolo Greens (6092)
  • Shell Vacations Club at The Kona Coast Resort II (6096)
  • Shell Vacations Club at Waikiki Marina Resort at the Ilikai (7775)
  • SVC @ Kauai Coast Resort at Beachboy (6454)
  • Sweetwater at Kauai (0495)
  • Sweetwater at Waikiki (0381)
  • Tropical Trades at Paki Maui (TRO)
  • Valley Isle (Vacation Internationale) (0529 VAI)
  • Waikiki Beach Walk (Wyndham) (8667)
  • Westin Ka’anapali Ocean Resort Villas (KAA, KA1)
  • Westin Ka’anapali Ocean Resort Villas North (KAN)
  • Westin Princeville Ocean Resort Villas (WPV , WV1)
  • Whaler (WHA, WHL)
  • WorldMark Kapaa Shore (2669 WAK,KPA)
  • WorldMark Kihei (6494 WKI)
  • WorldMark Kona (4935 WKN)
  • WorldMark Valley Isle (2283 WAM)
Posted on Feb 5, 2013

Number of timeshares in Hawaii

Most timeshare units are divided into one week timeshares. There are 10,201 timeshares. Assuming each timeshare unit has 50 timeshare owners, the math implies today there are about 500,000 individual owners of Hawaiian timeshares.

Islands with resorts

    • Hawai’i Island
    • Kaua’i
    • Maui
    • Moloka’i
    • O’ahu
Posted on Feb 5, 2013

Contact Us…

 18831 Von Karman Avenue, Suite 270 Irvine, CA

Visit Us…

Top