Understanding Estoppels in Wyndham Vacation Club Ownership

When buying a Wyndham Vacation Club timeshare ownership, it is important to always review the developer estoppels form prior to closing. Richard Marquette, editor of the online magazine Vacation-Times, which focuses on the timeshare and vacation ownership industry, explains what that means.

Understanding this form, says Marquette, can be confusing if you are unfamiliar with the specialized terms and point designations. It's very important as a buyer you ensure that you understand what type of usage points are going to be available to you in your first year after closing- and how the available point usage can be impacted by the designations.

As part of the transfer process, your closing agent should provide you with a copy of the completed estoppels form. This document can also be called an ownership and financial verification form.

Be aware that estoppels for a timeshare ownership is quite different from the estoppels request common to traditional real estate. In a residential closing, the estoppels form normally contains loan payoff information from the current mortgage company. In a timeshare closing, the estoppels should provide you with a complete explanation and confirmation not only of the financial status of the property being purchased, but should also provide you with a clear picture of the ownership details of the interval and unit being transferred.

For Wyndham Vacation Ownership transfers, the terminology used on estoppels forms is specific to this company. On its estoppels form there are five ways that available points are classified:
  1. Regular Use Points - These are the traditional allotment of points given on the owner's use year anniversary.

  2. PIC points - These are Personal Interval Choice points which are given for a non-Fairfield or Wyndham resort week which is deposited into the owners Wyndham points account.

  3. Credit Pool Points - Owners can bank Regular Use Points that they do not plan to use during their usage year.

  4. Canceled points - These points result from a reservation that is canceled more than thirty days prior to the check-in date.

  5. Limited points - A reservation that has been canceled thirty days prior or less to the check-in date will result in this point type.
Marquette recommends that before finalizing any closing always ensure that the estoppels matches up with the original purchase and sale contract, and that you will be receiving the point classification you expect.
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