Magic vacation Title

[Belle091507]

Has anyone bought with fidelity and requested they use magic vacation title instead of their usual company? I have read that slow processing with fidelity can be somewhat related to their closing company and that magic is usually very quick.

Thank you!

 

[EEGRAM]

I just closed a contract using Fidelity's preferred title company and it went quite well. No delays at all.

 

[disneynutz]

My guess is that the broker gets some type of fee for each contract processed by the closing company. That would be the only reason that a broker would continue to use a sub-par closing company.

Bill

 

[busybethie]

HI. I just did this. Requested Magic Vacation Title when the bid was submitted. thanks.

 

[MarlaSingersLaundry]

HI. I just did this. Requested Magic Vacation Title when the bid was submitted. thanks.

I did also. We had a prior bad experience with their usual title company. It caused a year long headache with the IRS because the title company did not submit the paperwork correctly or identify payments. I'll never use that title company again. Magic vacation is less expensive as well.

 

[Crafty527]

Was the problem because the contract was with a foreign seller? We almost bought a contract and after we made the deposit we were told it was a foreign seller.

They then wanted us to sign forms for the IRS saying we would pay the taxes if the closing company made a mistake.

We backed out of the deal and got our deposit back. We wouldn't buy from a foreign seller because of the potential hassle.

 

[Belle091507]

HI. I just did this. Requested Magic Vacation Title when the bid was submitted. thanks.

Thanks for this info- I did request to use Magic and it was not a problem at all! I'm waiting on ROFR now

 

[Belle091507]

Was the problem because the contract was with a foreign seller? We almost bought a contract and after we made the deposit we were told it was a foreign seller.

They then wanted us to sign forms for the IRS saying we would pay the taxes if the closing company made a mistake.

We backed out of the deal and got our deposit back. We wouldn't buy from a foreign seller because of the potential hassle.

That is strange, it is my understanding that the company holds an additional 10% of the final price from the seller (in addition to the commission) to cover any taxes owing from the foreign seller. Then the seller submits a form to the IRS to figure out what is actually owing( it's not more then 10% from what I have read) so it's strange that they would make the new buyers responsible when they are already holding funds in escrow?

( I'm a foreign buyer so I have been reading in case I would ever want to sell)

 

[twinsouvenirs]

My guess is that the broker gets some type of fee for each contract processed by the closing company. That would be the only reason that a broker would continue to use a sub-par closing company. Bill

Title *** and brokers/realtors absolutely have 'reciprocal relationships' and some even have started their own affiliated title companies. I have often heard the analogy that selling title insurance is like printing money.

 

[kmc33]

That is strange, it is my understanding that the company holds an additional 10% of the final price from the seller (in addition to the commission) to cover any taxes owing from the foreign seller. Then the seller submits a form to the IRS to figure out what is actually owing( it's not more then 10% from what I have read) so it's strange that they would make the new buyers responsible when they are already holding funds in escrow?

( I'm a foreign buyer so I have been reading in case I would ever want to sell)

We were attempting to buy a contract which was from a foreign seller. Even though we got all of our closing paperwork into the broker, the buyer did not do what he needed to with the Canadian government in time for the closing date. So that's another story but we are starting over looking for a new contract.

Anyway, in terms of the 10% withheld, you are correct. The broker and the title company were handling everything so we did not have to do anything. However, it is my understanding that during a transaction like this, if the foreign seller does not submit the necessary information to the IRS, the buyer can be held responsible. In our case, the closing would not go through because the seller did not do his end. So it would not have ended up that we would have to pay it, but we had to sign a form and list our ss# so that it can be demonstrated to the IRS that it was taken care of for our purchase.

The Timeshare Store and Magic Vacation Title are wonderful. They handle everything and it was very clear in the document we signed that they would handle the details necessary for the foreign sale at the closing. They will not let a closing go through that could end up having the IRS come back to the buyer for the taxes.

My advice to anyone buying a contract that is from foreign seller is to make sure up front that the seller is either allowing the broker to take care of the foreign tax issues (there is a fee associated with this that the seller must pay, but it will go very smoothly & quickly) OR that a seller that may be handling him/herself has their ducks in a row at the time the offer is accepted. This was the problem with ours, the seller wanted to do it on his own to avoid paying the fee to the broker, but he has dragged his feet to do what he needed to do thus missing our closing date.

 

[Belle091507]

We were attempting to buy a contract which was from a foreign seller. Even though we got all of our closing paperwork into the broke, the buy did not do what he needed to with the Canadian gov in time for the closing date. So that's another story but we are starting over looking for a new contract.

Anyway, in terms of the 10% withheld, you are correct. The broker and the title company were handling everything so we did not have to do anything. However, it is my understanding that during a transaction like this, if the foreign seller does not submit the necessary information to the IRS, the buyer can be held responsible. In our case, the closing would not go through because the seller did not do his end. So it would not have ended up that we would have to pay it, but we had to sign a form and list our ss# so that it can be demonstrated to the IRS that it was taken care of for our purchase.

The Timeshare Store and Magic Vacation Title are wonderful. They handle everything and it was very clear in the document we signed that they would handle the details necessary for the foreign sale at the close. They will not let a closing go through that could end up having the IRS come back to the buyer for the taxes.

My advice to anyone buying a contract that is from foreign seller is to make sure up front that the seller is either allowing the broker to take care of the foreign tax issues (there is a fee associated with this that the seller must pay, but it will go very smoothly & quickly) OR that a seller that may be handling him/herself has their ducks in a row at the time the offer is accepted. This was the problem with ours, the seller wanted to do it on his own to avoid paying the fee to the broker, but he has dragged his feet to do what he needed to do thus missing our closing date.

Thank you for the information! Sorry to hear that your purchase didn't get closed how frustrating after the whole process!