There are lots of things to consider when selling your timeshare because there are so many things to think about so important things can be overlooked. One of the most important financial aspects, that is sometimes not considered is the cost to transfer the ownership of a timeshare.
It is common practice for the timeshare seller to pay the costs to transfer ownership to a buyer. This is unlike normal day to day sales, for example buying a car or a home. During those processes, it is more often than not the buyer of the goods who pays the transfer of ownership fees.
The reason the timeshare seller pays the transfer fees is to make the sale more attractive to the buyer. The closing fees are often not defined until the end of the process and the uncertainty of total costs is off putting for potential buyers.
Due to the countless number of timeshare’s on sale at the moment sellers are literally doing everything they can to make their timeshare the most attractive to purchase and this is now including covering the closing costs. However as a seller – beware, make sure you are fully aware of how much these costs are going to be.
So, the burning question…. What is the cost?
The major title companies are charging anywhere from $350 to $550 to hold escrow and prepare the deed (more if you live in a state where an attorney is required to record the deed). This fee can be even higher for non-deeded properties. Recording fees may be added as well as the estoppel fee to verify the ownership, which can be another $45 on average. Once the deed is recorded it is sent, along with any other required documents, to the timeshare resort with a cheque to pay the resort transfer fee. This is a fee paid to the resort to update their records to reflect the new owner. While not all resorts charge a resort transfer fee, the average fee paid to the timeshare resort to process a transfer is over $276. If applicable, exchange companies can charge a fee that typically exceeds $100, and many timeshare resorts have also begun to charge a ‘club initiation fee’ or ‘education fee’, which can be hundreds of dollars of additional expense.
It’s clear to see that the cost to transfer ownership can easily be $500 to $1,000. So it’s worthwhile looking into whether it’s worth it, for example, if you only sold your timeshare for $1,000 you understand why it is important to know these costs ahead of time, as you could end up in negative figures!
Because this expense is often unknown throughout your selling process it’s important to be prepared for the cost. It is a wonderful master plan to make your timeshare sale more attractive to potential buyers, however, make sure you know as much as you can and build these expenses into your action plan. I can’t think of anything worse than ending up out of pocket in negative figures.
For more information regarding this article or assistance in any other timeshare related issues please contact the TCA on 01908 881058 or email: info@TimeshareConsumerAssociation.org.uk