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

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

Hawaii Timeshare Trends

Today’s Hawaiian timeshare is not the same as the shady timeshare of yesterday.  The industry is now dominated by big corporations like Hilton, Disney, Hyatt, Starwood, Marriott and Wyndham. These big corporations have standardized the timeshare industry.   

Another factor in growth is Hawaii’s Bureau of Conveyances which maintains accurate records of timeshare units. These records are readily accessible by the public. This accuracy and accessibility of ownership records protects the public and their timeshare investment.

 

As a result timeshares in Hawaii have grown 23% since the economy collapse in 2008.  In 2008 there were 8,314 timeshare units in Hawaii. Last year in 2011 there were 10,201. Deed and Record does it all to change ownership and title by quit claim deed for the growing number of timeshare owners.

Posted on Jan 18, 2013

Divorce, Trust and Gifts

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.

In Hawaii a quit claim deed must have attached 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 in and out of a trust are exempt. Transfers due to divorce and dissolution of marriage are exempt. True gifts are also 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.

The deed must be recorded with the Bureau of Conveyances to put the world on notice of the change in timeshare ownership. Maintaining an accurate, timely and permanent record system of timeshare ownership is the responsibility of the State of Hawaii Bureau of Conveyances.  A properly prepared quit claim deed must have the legal description, interval control number and reference to a prior recorded document.

Once the quit claim deed has been recorded it is returned by the Bureau with proof of recording. This recorded deed must be provided to the resort management company to update their records for reservations, accounting and billing.

Posted on Jan 18, 2013

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