Vacationers can buy the right to use a property for a set number of days each year through timesharing. A group of people shares ownership of the property, wherein each owner has an equal chance to use the property during the year. According to statistics, about 9.9 million households in the US alone have timeshares.
Owning a timeshare can have benefits like convenience and predictability. However, circumstances can change, and you might need or want to transfer your ownership. You could be selling because you no longer use it, can’t afford the maintenance fees, or simply want to get out of your contract. Whatever the reason, there are some things you need to know before you transfer ownership of your timeshare.
Right of First Refusal
Understand that you may not have the sole right to sell your timeshare. In some cases, the resort has the first right of refusal. This means they have the opportunity to buy back your ownership stake before you can sell it to someone else.
Some timeshare contracts have this clause to protect the resort from outside investors buying up property and changing the nature of the resort. It also ensures that the new owner is someone who will use and take care of the property according to the rules set by the resort.
If you’re looking to sell your timeshare, check your contract first to see if there’s a right of first refusal clause. If there is, you’ll need to notify the resort of your intent to sell and give them the chance to repurchase it before proceeding with the sale. This will usually be outlined in the contract.
Deed or Contract
When you own a timeshare, you’ll either have a deed or a contract. A deed is a legal document that outlines your ownership of the property. This is more common in fee-for-service timeshares, where you own the property.
A contract, on the other hand, is more common in points-based timeshares. In this case, you’re purchasing the right to use the property for a set number of days each year. The contract outlines the terms of your ownership and use.
One can transfer both deed and contract ownership. You can better understand the process of transferring ownership by determining which document you have.
Let’s say you have a deed. You can sell, donate, or will to someone in your will. You can also hand down ownership to your children through a gift deed.
If you have a contract, you can do a contract assignment. This is when you transfer the rights to use the property to someone else. You can also do a contract termination, which cancels the contract entirely.
Legal and Financial Considerations
There are some legal and financial considerations to keep in mind when transferring ownership of your timeshare. First, check your contract for any selling, assigning, or terminating ownership restrictions. There may be fees associated with these processes as well.
Understanding the legal and financial considerations of timeshare ownership will help you navigate the process of transferring ownership. Suppose you are unable to sell, assign, or terminate your ownership. In that case, you may need to consult with a lawyer to explore your legal options.
Timeshare transfers can be tricky, so you need to understand your options and legal rights before proceeding. If you’re thinking of selling, donating, or transferring your ownership, do your research and consult with a professional if needed. Thankfully, many experts offer title transfer services to help make the process as smooth and easy as possible.
Such a service is a popular legal timeshare transfer solution many reputable companies offer. For best results, find one with years of experience offering free private consultation and a written guarantee. If possible, choose one that also offers timeshare mortgage cancellation services if you still have a mortgage on your investment.
This is an old tactic many scammers use to take advantage of owners wanting to get rid of their timeshare. They will claim to have a buyer lined up and ready to purchase your timeshare, but they will need a small fee upfront to secure the deal.
They may even go so far as to provide you with fake documents detailing the sale. Once you’ve paid the fee, they will disappear, and you’ll be stuck with the timeshare. If someone offers to buy your timeshare, do your research first.
Get everything in writing and never pay any fees upfront. If the deal is unbelievably good, it probably is a scam.
Be aware of the many scams so you won’t be a victim. Do your research and understand the process. For any questions, consult with a professional. You can successfully transfer your timeshare ownership with the right knowledge and guidance.
Transferring ownership of a timeshare can be a complicated process. You can do this successfully with the proper knowledge and guidance. By familiarizing yourself with the major considerations mentioned above, you can avoid potential pitfalls and ensure a smooth transition.