At the time of purchase, timeshare owners enter into a contract to pay ongoing maintenance fees. Therefore, regardless of whether the timeshare owner uses the timeshare, the owner must pay the fees. This post by Deed and Record considers the options to do nothing, gift, resell, and deed back timeshares in California, Hawaii, and Nevada.
The first option of not paying the maintenance fees is a bad one. The timeshare company will be aggressive in collecting their fees. The timeshare company may turn over collections to a third party that will relentlessly pursue those fees. Worse, the timeshare company will report the delinquency on the owner’s credit history.
A better option is to attempt to sell the timeshare. But the resale market is thin. The timeshare owner may be shocked that the resale value is pennies on the dollar compared to the original purchase price. For many timeshare resorts, there is no resale market.
There are timeshare brokers in the resale market. But, the problem is the broker will want payment of fees upfront. Brokers require upfront costs because supply exceeds demand, and the likely hood of getting paid a commission is low.
The next option is to gift the timeshare. Friends or relatives may be willing to take the timeshare because they will use it. But the timeshare owner is morally obligated to disclose ongoing maintenance fees to the giftee.
A final option is a deed back. Some timeshare companies are willing to take the timeshare back. The process is known as a “deed back.” The timeshare owner returns ownership to the company in exchange for relief from the maintenance fees.
These are the basic steps.
- Find someone who can use the timeshare, which is most likely the most challenging step
- Prepare a deed to transfer ownership
- Record the deed with the County or the Bureau of Conveyances
- Present the recorded deed to the resort management to update their records.
DeedAndRecord will prepare the deed and record it
Specifically, we will:
- Determine the precise legal description of the timeshare, including parcel number, internal control number, map, block, and lot number
- Determine the tax identification number of the timeshare
- Locate the last transfer deed
- Prepare the deed
- 88prepare tax transfer document
- File the deed with the County Recorder’s Office or the State of Hawaii
- Return the deed with proof of filing
Contact by at Mark@DeedandRecord.com or call 714-846-2888.