Whether you are considering selling your timeshare ‘for sale by owner’, or have already found a buyer for your time share property (in which case – congratulations), there are a few legalities you will need to consider before closing the sale. In either case, you may be wondering whether or not you need a lawyer or broker to complete the transaction. Timeshare is often considered to be tangible real estate, but it is not subject to many of the rules and regulations typical for traditional real estate property. Therefore, there is a unique set of guidelines to follow when transferring ownership of a timeshare through a sale, and many of the traditional rules of real estate do not apply.
Do I need a broker to sell my timeshare?
The short answer to this question is, no. Brokerage is entirely optional and you can save some cash by choosing to do the marketing and negotiating on your own. Generally you will pay a real estate broker between 20% to 40% commission on the property that is sold. Broker assistance is often available through some of the online timeshare sales sites for a reduced rate, but I recommend trying to do it on your own. Broker assistance can be helpful for those who want as little as possible to do with the process of finding a buyer and settling on a sale price, but does translate into higher cost for the seller.
Do I need a lawyer to handle closing?
At the very least you will need to involve a title company, preferably one that is licensed and bonded, to handle the closing procedure. This company will complete deed preparation, escrow of funds, timeshare estoppel certificate (also known as report disclosure – outlines a timeshare’s status with your individual resort as pertains to back taxes, maintenance fees paid to date, and any outstanding charges or special assessments that may occur), closing statements and recording fees. It is advisable to have a lawyer look over any changes that were made to the title and confirm their correctness; there are real estate lawyers specializing in timeshare that can be hired hourly for this purpose.