All timeshare transfers should be completed with a third party full service escrow company and title insurance should be obtained from a third party title company.

The auction environment has demonstrated and reinforced the necessity of a true escrow with title insurance (not just a title search).  The number of title defects and escrow problems can run from 5 to 15% of the total number of transactions.  Most are solvable, but required multiple steps to resolve the problem.  In the process title insurance not only protects the buyer but also protects the seller.

The potential liability that could be incurred is avoided by using a national title company and title insurance.  A policy of doing transactions only with title insurance proves to be invaluable.  This small and inexpensive step solves and prevents innumerable problems and is very cost effective.

Regarding the transfer of your owner's property ... just knowing that it has never been transferred previously in the resort records does not guarantee that there have been no changes in the owner's legal status.  (Examples: trusts, gifts, death, tax liens, probate, divorce, marriage, etc.)

Most timeshares in most states fall under regulation of the Department of Real Estate and are considered real property/real estate.  Deeded property always has value, although some timeshare weeks may have low value.  This does not change the legal status of the property or limit the potential for liability.

What type of Escrow Transfer provides me with the maximum protection?

·  Third Party Escrow:  The most professional type of transfer.  Handled by an independent, licensed escrow company with expertise in the transfer of timeshare properties.  Provides the most protection for all parties.  Buyer funds are held in a trust account and are not disbursed to the Seller until all terms of the transfer are completed.  Seller's property is not transferred to the Buyer until all terms are met.  The Third party escrow is Not a party to the transaction, thereby providing an independent, unbiased transfer.  For a very moderate fee, Buyer and Seller receive the most protection through a Third Party Escrow.

·  Internal Escrow:  Typically this type of escrow is handled by either a real estate broker that is party to the transaction, or internally by the resort or management company itself.  The biggest problem with this type of transfer is that there is no independent, disinterested party involved, no unbiased entity that reviews the documents, hold funds, and prepares transfers.  Buyer and Seller receive limited protection through this process, and have no protection from a disinterested party that would alert them to problems or discrepancies.

·  No Escrow:  Buyer and Seller assume full responsibility for the transaction, and have no independent entity reviewing the transaction for accuracy.  No Trust fund for holding funds.

A Third Pary Escrow Company will properly:

 1. Document the transaction.
 2. Request preliminary title information.
 3. Request loan, taxes, waivers and HOA status.
 4. Prepare necessary recording documents.
 5. Collect sale proceeds/costs from buyer.
 6. Pay off loan or set up new loan.
 7. Bring taxes and HOA fees current.
 8. Prorate all income and expenses.
 9. Obtain title insurance.
10. Comply with all state and federal transfer requirements.
11. Request deed recording.
12. Notify management company of transfer.
13. Provide exchange company transfer/membership forms.
14. Disburse net sale proceeds to seller.

A Third Party Title Insurance Policy will:

 1. Verify that the seller is the legal owner.
 2. Verify the legal description of the timeshare.
 3. Identify any liens against the property.
 4. Insure buyer against any recordings not identified in title policy 
    (i.e. loans, taxes, CC&Rs).
 5. Insure buyer that the chain of title is proper.

Contact us at: tcprotection@gmail.com

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