What is escrow?
Escrow is many things: it is a neutral third-party that takes, mutual written instructions from the parties as to the terms and conditions for closing the sale that they have negotiated; it is the holder of buyer’s money to pay the purchase price and any negotiated costs at close of escrow; it prepares the proper transfer documents for filing/recording at close of escrow; it contacts the resort to obtain a Statement of Account to verify that the seller is paid current and the terms for transfer of ownership at close of escrow; it obtains a waiver of the resorts right-of-first-refusal, if applicable; it obtains a title search and title insurance if the parties make written request; it closes escrow and disburses buyer’s funds only when all terms and condition of the mutual escrow instructions of the parties have been met.
Why is escrow necessary?
A buyer can have piece-of-mind knowing that when the seller receives payment of the negotiated purchase price for the timeshare interest that all of the required and proper transfer documents have been signed by seller and filed with the resort; all of sellers financial obligations to the resort are paid current, and the buyer can begin to enjoy the timeshare interest purchased; a seller can have piece-of-mind knowing that when it receives buyer’s payment of the purchase price it has satisfied all of the proper transfer requirements with the resort and is free of any future financial obligation to the resort
How pay the closing cost?
These costs are negotiated between the buyer and seller. The most customary method is for buyer and seller to split the costs 50/50; however, depending upon the terms of each sale, one party may elect to pay all costs. In any event, the parties will advise escrow of their agreement.
How long does the closing process take?
The time it takes to close an escrow will vary based upon 1) how quickly the parties respond to escrow with providing information and returning signed documents and funds to close; response time by the resort; obtaining a title search for title insurance (if applicable and for deeded interests only); and recording transfer documents in the county where the property is located (for deeded interests only). Most escrows take approximately 30-45 days to close.
Is title insurance required?
Prestige highly recommends that a buyer obtain the protection of title insurance for the transfer of a deeded timeshare interest. We do understand, however, that a buyer may choose not to obtain title insurance because of the cost and/or the time delay associated with obtaining a title search in some states. We suggest that a buyer inquire about the cost and time associated with obtaining a title search before making this decision. In the event a buyer chooses not to obtain title insurance, the buyer will be required to sign a statement declining it.
If I still have an outstanding loan on my timeshare can I sell it?
Yes, the loan can be paid off in escrow from the sale proceeds. In the event you owe more on your timeshare than the sales price you receive, you can deposit the amount in excess of the sales price (less your costs, if any) into escrow and the loan can be paid off at close of escrow.
What is a leased Ownership?
A leased ownership gives you an ownership interest in the timeshare for a specific period of years and at the end of the lease term your interest is terminated and ownership reverts back to the developer. As with deeded and non-deeded ownerships, leasehold interests are subject to each timeshare project’s recorded Covenants, Conditions, Restrictions and Declarations, as well as the owner’s association and management rules and regulations. You should ask to receive a copy of these documents before you close your sale.