A Guide To Transferring Timeshare Ownership

Keen to buy, sell or gift timeshares, but not sure how exactly the ownership would be transferred? Here are some dos and don'ts…

Timeshares are very similar to real estate in many aspects and hence, should be treated with as much respect. It is important to have the paperwork in place so that you can avoid unpleasant surprises and really enjoy your vacations.

If you are buying timeshare or even wishing to dispose off your timeshare by selling or gifting, you must be very particular about transferring the timeshare ownership. Your resort's legal department is best equipped to advise you about transferring the timeshare ownership. You may also engage the services of an attorney so that the ownership transfer documents do not have any loopholes. It is not legally binding to have an attorney draw up the contract, provided you are one of the contracting parties. Escrow companies can also facilitate the transfer process. They prepare all the required documents and help to close the deal. The funds are held in a secure trust account and the funds are disbursed only after the deal is closed provided the instructions of both buyer and seller are similar.

First of all you must ensure that the timeshare has a clear title. Then draw up an Earnest Money contract, that details all the terms and conditions of the transfer. Over a period of time, timeshare resorts may amend some byelaws, or the exchange company may change the definition of seasons. Make sure that the deed incorporates these changes. Notify the county clerk / recorder office about the change in ownership by sending the original of the signed and notarized deed. As the seller, you are responsible for informing the resort, in writing, about the change in ownership and as a buyer you must ensure that the resort gets a copy of the signed, notarized and recorded deed.

If the deed includes the membership of an exchange company and/ or the timeshares being transferred include weeks that have been already deposited with an exchange company, both the seller and buyer (or the person to whom the timeshare is being gifted) must submit an application for membership transfer to the exchange company. As the rules for timeshare ownership transfer may differ from state to state, make sure the deed meets the requirements of the state in which the resort is located, especially if you are drawing up the contract on your own.

Though the task of transferring timeshare ownership may seem a tad difficult, with the right information and a little caution, you can spread the holiday cheer around!!