THE VIRGINIAN-PILOT
Copyright (c) 1997, Landmark Communications, Inc.
DATE: Sunday, January 19, 1997 TAG: 9701160098
SECTION: CAROLINA COAST PAGE: 12 EDITION: FINAL
COLUMN: REAL ESTATE
SOURCE: Chris Kidder
LENGTH: 111 lines
Last August, I wrote about vacation buyers who were sold a week of time share already sold to someone else. Although the buyers had a valid deed (the paperwork was properly prepared and registered), their title was defective because the other owner's deed had been registered first.
This kind of paperwork error happens occasionally, especially when large sales staffs are handling a big volume of transactions and when buyers don't hire their own attorneys to do title searches. Time-share resorts and large developments offering in-house financing are two potential trouble spots.
According to a spokesperson for the North Carolina Real Estate Commission, these errors are usually caught quickly and, while disappointing, cause no harm.
In the case I cited in August, circumstances weren't so harmless.
These buyers made their time share purchase of a duplex unit in July 1995. The purchase was actually what the time-share folks call an ``upgrade,'' trading in one week (in October) for another at a more desirable - and expensive - time of year (July). It wasn't until November that the buyers were told their new purchase was invalid.
In the meantime, they had received a signed, sealed and registered deed and had rented half the duplex for their 1996 week.
The money involved was not insignificant. The buyers paid $13,400 for the week they traded in and an additional $9,000 for the upgrade.
The time-share resort offered to refund the upgrade money and return the original week to the buyers. Other offers of different weeks and different accommodations may have been made although, a year later, no one recalls the details.
But the husband and wife, thinking that their deed proved they did, in fact, own the week, resisted making any deal and let the problem slide.
Last May, they received a letter from the time-share developer's attorney reiterating that the new week was not theirs and that the developer wanted to give back the old week and refund the difference in price. The buyers were disgusted and wanted all their money back.
The buyers contacted the sales manager at the time-share development; they were told to deal with the attorney. They called the lawyer several times; the calls weren't returned. Finally, in August, the husband got the attorney on the phone. The developer's offer was the same: the old week would be returned and the cost of the upgrade would be refunded.
By this time, the couple had missed their July vacation, refunded the rent for the ``B'' side of their duplex, paid a $300 annual maintenance fee for a unit they didn't own and couldn't use, and paid $2,400 in interest on the loan for their purchase.
For the first time, they put into writing what they wanted: a refund plus $4,100 for other expenses related to the transaction.
The couple wrote to the North Carolina Attorney General's office, although it's not clear if they followed up on this and filed a formal complaint. They did file a formal complaint with the North Carolina Real Estate Commission. They contacted a local television station's consumer reporter and wrote to me.
Once the real estate commission was involved, the developer's attorney focused on getting the matter settled. In late December, the couple received a check for the entire purchase price, plus the maintenance fee and interest on the $9,000 for the 18 months it took to get the refund.
I don't know about the rest of you, but if someone tied up several thousand dollars of my money for 18 months, I'd be pretty darn mad. But what could these folks have done differently?
I asked the developer's attorney. ``The steps they took to resolve the matter were proper,'' he said. ``It definitely took longer to resolve than it should have.''
Part of the problem, he said, was that the developer had never issued two deeds for the same property before, and no one really knew what to do about it.
While there's no excuse for the developer's lack of action once the mistake was discovered, it's easy to see, in retrospect, where these buyers contributed to their own frustration.
They waited nearly 10 months to take decisive action. They asked for reimbursement beyond out-of-pocket expenses that normally wouldn't be included in this kind of settlement. Their information about what happened and when it happened was not complete nor was it totally consistent.
The first rule for solving this sort of problem is to act decisively in a timely manner and put everything in writing, including detailed records of all phone calls.
The second rule is to solidify your plan, what you want and how you can get it. You can't expect a settlement when no one knows what you want. Base your demands on common practice and make them reasonable, uncomplicated and straightforward. Eliminate contingencies.
Find out what laws affect your situation. Research the issues on your own or with appropriate government agencies. With North Carolina real estate problems, the state's real estate textbook - available at libraries or through bookstores - is an excellent place to start.
If the stakes are large enough, hire an attorney to advise you about your rights and legal precedents for a settlement. One letter from an attorney explaining your position can often be more effective than five letters from you.
Whether or not you hire an hire an attorney, putting public agencies to work on your behalf can help. But you must first learn what agencies carry the biggest sticks when it comes to bringing about the action you want.
Find out their complaint procedures and how long they take to act. Find out what the agency can actually do. Writing letters is a waste of time if an agency can act only when completed forms are in hand; counting on results from agencies that have no power to punish is pointless.
The third rule is to follow up. It's not enough to mail a letter. You have to call and ask if it was received and what's going to be done about it. You need to send copies to all parties involved. And you have to keep calling until the promised action is taken.
It's a shame that anyone has to go through all this hassle through no fault of his own. The time share buyers were simply trying to buy a nice vacation, and they ended up with no vacation, thousands of their dollars tied up and unavailable - and stressed out over the injustice of it all.
It's not fair - but it sure keeps life from being dull. MEMO: Send comments and questions to Chris Kidder at P.O. Box 10, Nags
Head, N.C. 27959. Or e-mial her at realkidd@aol.com