WHAT TO DO IF YOU HAVE AN UNWANTED INTEREST IN A TIMESHARE
Parents bought a timeshare at a vacation resort, and the resort representative advised them to execute a deed transferring ownership to their surviving children. At the time, it seemed like a good idea. Unfortunately, once Mom and Dad passed, the children were shocked to receive demand letters from the resort charging them hefty annual maintenance fees.
Those fees typically start at $1,000.00 per year and increase. Extraordinary occurrences like hurricane damage might result in additional fees. Regular annual increases of up to 4% may be higher than the rate of inflation. The children would pay $1,477.00 in ten years at a rate of 4%, an increase of roughly 48%!
And the kids would be liable for those fees indefinitely, regardless of whether they used the property or not.
THE ONLY WAY TO UNLOAD THIS OBLIGATION IS TO GET RID OF THE TIMESHARE!
If you are caught in this dilemma, act promptly. You should pay the resort's demand while contesting it, along with a protest letter. If your parents have left an estate, pay the fees with estate funds rather than money from your own bank account. You must not use the share or you may jeopardize your ability to escape from it. If you do end up having to file a lawsuit, you only have a limited amount of time under state statutes of limitations.
The resort might have a resale program, but unfortunately many do not.
You should not pay for termination services in advance, and you should not submit to threats.
It is highly advisable to hire your own local legal counsel to represent you. Beware of online hypes that promise to sell your share or get you out of the obligation by "exit" services.
This seems to be an area particularly attractive to outright scams or enterprises that fail to deliver on promises.
If you do negotiate a sale or exit on your own, don't sign anything without your own lawyer's prior approval. Your lawyer will make sure that the deal really will work as a complete "renunciation of property." That is, any agreement you sign must deed all of the real estate interest to the new owner or back to the resort, and it must expressly, completely, and immediately free you from the relationship with the resort as a release, termination and cancellation of the Timeshare and any obligations.
This document is designed for general information only. The information presented on this document should not be construed to be formal legal or tax advice nor the formation of a lawyer/client relationship.
For more information on this and other topics, please contact Kevin via any of the channels listed below:
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