Advice on selling a timeshare unit

[mmerlin]

I'm about to try and sell a timeshare unit (on the Gold Coast) on behalf of a relative and was hoping some people here might be able to offer some advice.

I wrote to the company who manage the units and they said we can sell the timeshare ourselves, but to transfer the "Certificate of Title" we need to contact the Brisbane Titles Office and complete a legal transfer form.

I just did a couple of searches and cannot find a website for the Brisbane Titles Office, does anyone know where I can find them?

What other steps are involved... do I need a contract or is the act of transferring the "Certificate of Title" enough?

Also, is there any great risk in doing this without a solicitor (mainly concerned with the sellers side, not the buyers)

The timeshare unit is being sold at a loss so trying to keep the associated transaction costs down.

Any other advice relevant to this situation is also appreciated.

I've been tracking a few other timeshares for sale on ebay and the adverts barely display any info on the transfer procedure, so I'd like to spell it out in detail so the buyer knows exactly what all the steps and costs are.

Thanks!

MM

 

[Jamie]

I wrote to the company who manage the units and they said we can sell the timeshare ourselves, but to transfer the "Certificate of Title" we need to contact the Brisbane Titles Office and complete a legal transfer form.

I just did a couple of searches and cannot find a website for the Brisbane Titles Office, does anyone know where I can find them?

MM

Hi mmerlin,

Pretty sure the Titles Office you want is actually the Department of Natural Resources and Mines - from memory they are the ones responsible for everything to do with land titles.

Jamie.

 

[mmerlin]

Thanks Jamie,

Following that link, I found the Queensland Land Registry Forms Online Download Page

and it looks like the first file might be the one we need
(the document link is named "Transfer")
... can anyone confirm/deny this is the one we use?

Funny that it's a "Land Registry"... there isn't much land component in a 1 week floating timeshare unit

Are there any other things to consider as part of this transaction?

Apart from the "Certificate of Title" there is a second bit of paper that comes with the timeshare, called a "Share Certificate". Any idea what we do with this one? The timeshare management company did not mention it in their reply, even though I specifically asked about it. They just told me to go to the Titles office (or as Jamie more correctly pointed out, the Dept of Natural Resources and Mines).

 

[NigelW]

Hi Merlin

I'll try to respond tomorrow.

Cheers
N.

 

[pennyk]

there are some websites that sell timeshares. If you do a search of selling timeshare, I'm sure you'll get one.

you need to know/advertise what company you are linked with for exchanges - usually either RCI or Interval, or both. People who are committed to one or the other will generally only buy within that program.

and when your maintenance fees are paid up to.

Pen

 

[frankg]

How about you try eBay ... you can just about sell anything on there these days

http://www.ebay.com.au

or for overseas buyers

http://www.ebay.com

Cheers,

Frank

 

[NigelW]

I'm about to try and sell a timeshare unit (on the Gold Coast) on behalf of a relative and was hoping some people here might be able to offer some advice.

I wrote to the company who manage the units and they said we can sell the timeshare ourselves, but to transfer the "Certificate of Title" we need to contact the Brisbane Titles Office and complete a legal transfer form.

I just did a couple of searches and cannot find a website for the Brisbane Titles Office, does anyone know where I can find them?

What other steps are involved... do I need a contract or is the act of transferring the "Certificate of Title" enough?

Also, is there any great risk in doing this without a solicitor (mainly concerned with the sellers side, not the buyers)

The timeshare unit is being sold at a loss so trying to keep the associated transaction costs down.

Any other advice relevant to this situation is also appreciated.

I've been tracking a few other timeshares for sale on ebay and the adverts barely display any info on the transfer procedure, so I'd like to spell it out in detail so the buyer knows exactly what all the steps and costs are.

Thanks!

MM

Merlin

Sorry it's taken some time to get back to you - been a bit snowed under.

Timeshares are a curious beast. While you would think that what you're buying is an interest in real estate - that isn't necessarily the case.

In the old days (well before my time of course!) what you bought when you bought a timeshare was a share in a company. The rights attaching to the share would give you rights to stay in a unit in a particular block for x weeks/year. (Thus it's basically like company title to units but where the rights to occupy are limited by time and may not relate to a specific unit)

To make the investment seem more "safe as houses" what often happened was that the promoter would transfer to the owner say a 1/50th interest as a tenant in common with the 49 other timeshare owners in the title to the unit block. So you did own a slice of the land as well as a share in a company giving you certain rights. But of course the interest in land was useless because (apart from being shared so widely) it would also be subject to a long lease to the promoter/manager who would run the booking system etc for the property.

These days timeshare schemes are managed investments (which is quite counter-intuitive because they have no investment component). As such they are regulated under the Corporations Act just like other managed funds. What you buy with a timeshare is a unit in a trust fund which entitles you to rights to occupy a property or choose amongst a pool of properties owned by the relevant manager.

I suppose your first step will be to ascertain what it is you've actually got on you hands - it may be you don't need any involvement with the land titles office at all.

Second perhaps you should request the manager provide you with full details of the relevant entitlement and require that they detail the procedure (at least from an administrative perspective) for them to recognise and record the transfer of the interest. For example if it is a company share then you'll need to transfer it in accordance with the company's constitution and sign a transfer form, deliver the certificate to the purchaser and notify the company to record the transfer in its share register. The manager probably has forms they use so request them - you have rights and they have obligations as the manager of this type of scheme to give you this sort of information.

I'm not aware who specialises in this type of legal work in Qld, but perhaps the law society may know. Why not call the Qld Law Society general number 07 3842 5842?

Good luck
Cheers
N.

 

[mmerlin]

Thanks Nigel,

The timeshare was purchased in 1989, and the official documents are a
"Certificate of Title" and a "Share Certificate"

Some text from each document:

------------------------------------------
"Certificate of Title" document
------------------------------------------

One undivided three thousand and sixtieths

ESTATE AND LAND

Estate in Fee Simple in Lot 1 on RP221486
County of Ward
Parish of Gilston
Town of Burleigh
Containing 5059 square metres

FIRST SCHEDULE

[Person A] and [Person B] as joint tenants inter se as tenants in common in a 1/3060 part or share

SECOND SCHEDULE

1. Rights and interests reserved to the Crown by Deeds of Grant Vol 1424 Fol 241 (etc.)

2. Lease No. XYZ to Mariner Shores Club Limited from 19 Oct 1988 to 18 Oct 2087
Produced 18 Nov 1988
Registered 19 Dec 1988



------------------------------------------
"Share Certificate" document
------------------------------------------

Certificate No: 1234
No of Shares: 1

Incorporated in Queensland and under the companies (Queensland) Code.

Registered office {address of timeshare management}

Capital $3190 divided into 3190 Shares of $1 each


This is to certify that [Person A] and [Person B]
of {home address} is the Registered Holder
of One (1) F-2BRMF Class Share of ONE DOLLAR ($1.00) Numbered 1234
subject to the Company's Memorandum and Articles of Association and that the sum of $1.00 has been paid in respect of such share.

Given under the Common Seal of the Company this
30th day of June 1989

signed by the Director and Director/Secretary


This certificate must be surrendered to the Company on transfer of any of the above Shares. See the reverse side of this certificate for information on resale of timeshares.

{Reverse Side:}
"The National Companies and Securities Commission has issued a policy statement in relation to the reselling of timeshares. Amongst other things, this policy statement requires that a purchaser must be provided with a statement issued by Mariner Shores Club Limited upon payment of a fee. There should be provision in the contract for the purchaser to rescind within seven (7) days of signing. Further information can be obtained by contacting the resort.

 

[mmerlin]

I'm not aware who specialises in this type of legal work in Qld, but perhaps the law society may know. Why not call the Qld Law Society general number 07 3842 5842

My aim is to try and do this transaction without a lawyer (if possible). The timeshare is being sold a at loss and employing a solicitor will only exacerbate the cash drain.

That's why I am doing the research now before listing the timeshare for sale on ebay etc.

Just trying to figure out the procedures.

After re-reading your post Nigel, it seems that in this case, we will be dealing with the Lands office?

 

[NigelW]

My aim is to try and do this transaction without a lawyer (if possible). The timeshare is being sold a at loss and employing a solicitor will only exacerbate the cash drain.

That's why I am doing the research now before listing the timeshare for sale on ebay etc.

Just trying to figure out the procedures.

After re-reading your post Nigel, it seems that in this case, we will be dealing with the Lands office?

Yes it looks that way. Also, the note refering on the back referring to the NCSC is now ASIC and the document required is probably the product disclosure statement (PDS) which Mariner will now have for this product... and the requirements will be as set out in the Corps Act

Hope it goes well