We got a kick out of this.
One of our Subscribers confronted an escrow company that had been the escrow agent for 110 timeshare intervals that were transferred from the original owners to 44 separate individuals, trusts and Limited Liability Companies. Cumulatively, the new transferees of these 110 timeshare intervals at the 2 separate resorts were delinquent in the payment of assessments in the amount of $213,655 since the transfer. None of these entities and/or individuals paid any assessments after the conveyance of the timeshare intervals to them. Only two of the entities to whom the escrow company processed conveyances at the resorts were still shown as still active. Our Subscriber pointed out that the high rate of dissolution within this group of transferees was strong evidence that these now defunct entities always lacked the financial capability to pay the assessments or had always intended to default on their obligations.
The escrow company responded:
“Since the delinquencies occurred long after the transaction closed, your frustration with alleged delinquent payments seems to point to the state of the economy, and/or the buyers’ evaluation of the property after acquisition, and/or the buyers’ experiences with management of the property,”
One might ask, “Where in the Declaration is a default on the payment of Assessments is permitted due to the state of the economy, the buyers’ evaluation of the property or the buyers’ experience?”