As tempting as the idea of vacation ownership sounded, years of paying annual maintenance fees, special assessments, and other costs sour the experience for many. Because selling timeshares is nearly impossible and getting timeshare companies to take their units back is daunting, you may wonder, “Can you transfer a timeshare to family?” Technically yes, but how to do it legally and properly can be difficult, even for experienced buyers and sellers of real estate.
Timeshare transfers are often blocked by purchase contracts, which can restrict or even prohibit ownership transfers in certain cases. And, even if you can legally make the transfer, there is the larger question of whether you should. The number of fees for the transfer, including the fees that your friend or loved one will have to pay in the future, present reasons to think twice before handing over your timeshare and contract to them.
This article will take a look at the subject of timeshare transfers to family and friends, how the transfer process can happen, and what the practical effects of a timeshare transfer can be. Centerstone Group does thousands of these transfers per year and is a good resource should you want to explore this option.
Yes, if your timeshare agreement allows for it (and if your timeshare developer approves it), you can transfer a timeshare to a family member or friend.
But as we’ll mention later, just because you can doesn’t necessarily mean you should. If you’re trying to transfer out of your timeshare because it’s become a financial burden to you, you could strain your relationship by passing that burden on to someone you care about.
Whether or not you have a deeded timeshare, transferring that timeshare is an act that requires several legal steps, even if you’re giving it to a friend, a loved one, or a complete stranger. There are two main ways that you can complete a timeshare transfer:
Let’s take a closer look at each of these.
This is certainly the more common method of transferring a timeshare. It simply means taking your legal interest in the timeshare and giving it to the person you wish. For timeshares where you actually have a real estate ownership interest, that will mean drafting and signing a quitclaim deed, then recording that timeshare deed in the office of the county clerk or similar official.
While the process sounds straightforward, there are many small mistakes that can result in your transfer not working.
First, you should check your timeshare contract. Some contracts forbid you from making any timeshare transfer that is not first approved by the timeshare developer. The reason for these kinds of terms are that timeshare companies depend on a stream of fee payments from timeshare owners to keep themselves in business. If you can transfer to any person on the street, that puts their income in danger.
You may be able to get approval from a timeshare company to make your transfer, but that privilege will not be cheap. (You can call Centerstone Group for a quick answer as to whether your specific timeshare allows transfers.) We will discuss the costs of this plan further in the fees and taxes section below.
Second, even assuming that you get the timeshare company’s blessing, you won’t be able to complete the transfer without fulfilling the requirements for the transfer, which in many cases will require legal documents, like a new deed, to be drafted and recorded with the county clerk or other government office. Most people don’t know how to do that, and so it will cost even more money to do correctly.
Another way that timeshares can change hands is if you leave them to someone in your will as part of your estate planning. Because they are precipitated by your death, these transfers are harder for timeshare companies to void under their contract. (After all, they can’t make you pay more fees and costs after you’ve passed away.)
Inherited timeshares will still require some legal paperwork and fees, but those may be borne by the estate of the person who has passed away. That could mean that, if you intend to give a timeshare in this way, you could have fewer non-timeshare assets to pass on to your loved ones.
Yes, a family member can absolutely reject the “gift” of a timeshare. There is no state in the country where you can force somebody to accept a transfer of real estate they don’t want. And, if you try to give a timeshare through your will or testamentary trust, the person who is named as the recipient can just renounce the will and refuse to accept what they have been given.
So, you cannot force a friend or loved one to take a timeshare. But then again, why would you want to force them to do anything? Even giving a timeshare to a willing recipient will saddle them with ever-increasing annual maintenance fees, management company fees, and other costs.
While you may not want to force your loved ones to take on new responsibilities, keep in mind that the timeshare company will absolutely try to do just that. These companies will constantly put pressure on your heirs to take over the timeshare, and the pressure can build to an unbearable amount.
If you love someone and value them, you don’t want to force them to undertake an obligation that is making you unhappy or financially unstable. You also don’t want to put them in situations where developers are pressuring them to take financial responsibility for your timeshare. Thus, while someone can reject your gift, the possibility that they might should caution you against trying in the first place for the sake of protecting your relationship.
Yes, there are several fees and taxes that are part of transferring a timeshare. Chief among them is a transfer fee from the timeshare developer itself. These fees differ by developer and timeshare resort but will likely total hundreds or even thousands of dollars. And that is only if the timeshare company allows the transfer to happen.
If you can move forward, you will also have to pay taxes associated with the transfer as well as recording fees, escrow fees, title company fees, and other closing costs. Keep in mind that any mortgage against the timeshare will need to be paid off before the transfer, in addition to any outstanding unpaid fees (e.g., annual maintenance fees or special assessments).
Transferring a timeshare can be a viable option for timeshare exit in many cases. Centerstone Group has helped thousands with successful timeshare transfers in the past. We urge you, however, to think long and hard about possibly turning a timeshare over to a loved one and burdening them with the fees and contract that you’re trying to escape.
Centerstone Group has a better way. Because we have waiting lists of people with financial means who are waiting to take over these contracts, we can get you transferees who are, one, not family or friends and, two, can pass the vetting and get approval from developers for the transfer.
We can also explore a deed-back transaction to the developer. You get freedom from your timeshare, and you can also rest easy knowing that you won’t strain your relationships with your loved ones.
Centerstone Group is an A+-rated, accredited company with the Better Business Bureau (BBB), and it has a 4.82-out-of-5-star rating from its satisfied customers. Contact our team today to set up a free consultation so that we can explore the right options for exiting your timeshare ownership.
Know About Us
