Typical Closing Costs Involved in a Timeshare Purchase

Timeshare written in the sand

Most people nowadays concentrate their investments on businesses. However, you can choose to go against the grain and invest in your relaxation through the purchase of a timeshare. This guarantees you a getaway location for a specified period annually. You will come across various timeshare sellers online.

Some of them are only out to steal your hard-earned cash through unnecessary timeshare closing charges. Several actual closing costs are associated with a timeshare purchase. Here are some of them:

Escrow Costs

These offset the cost associated with an escrow account. The escrow account holds your deposit until your timeshare seller’s account and credentials have been verified. After verification and payment of the deposit, the escrow account will keep the remaining sum of your buying price until the deed transfer is complete. Escrow costs differ depending on the amount of your timeshare and the agent.

Deed Preparation

These costs offset all expenses associated with the preparation of your timeshare deed. They differ depending on the state of your timeshare since there are different local fees and state taxes paid during the transfer of a timeshare. An Estoppel certificate from the resort discloses outstanding fees that might affect your deed preparation.

Resort Transfer Fee

This is among the final costs that you will pay when buying a timeshare. A transfer fee is paid to the resort to facilitate updating of their record to reflect you as the new owner. Some resorts do not impose this fee but may recoup it via “education” or “club initiation” fees.

With the many timeshare frauds nowadays, you should be wary of sending money to a seller to “facilitate” the given costs. Involve a lawyer in every step of your transaction to ensure that you are not tricked. The lawyer will also help you interpret various legal issues that might mar your dream of timeshare ownership.