Timeshares for Sale Hidden Timeshare Costs

Hidden Costs Timeshares for Sale Fee Guide

When looking for timeshares for sale it is important to realize that there are always other costs involved in the purchase of timeshares. Most of these hidden extras crop up during the closing stages of a timeshare purchase and can be handled either by the individual buyer and seller or by a title company.

Title companies specialize in timeshare closings and, for a flat rate, will deal with all aspects of the transaction from document preparation to escrow services. It is usually best to hire a title company to do this as it can save both buyer and seller a lot of time and possibly money.

Services by such companies include document preparation, notifying the resort company of the ownership transfer, deed recording, escrow services and obtaining title insurance if it is requested. Charges for these services vary depending on the company used and can be from $250 up to $650. If you decide to use a title company ensure that they are licensed.

Sale fees

Even if a third party company isn't involved you can expect to pay for transfer documents, transfer fees and recording fees. Transfer fees are charged by resorts for the transfer of ownership from seller to buyer and can cost from $50 to $150, depending on the resort. Recording fees are a cost charged for the official recording of the new ownership. These costs are determined by the county in which the deed is being drawn and where the resort is located. Both apply to deeded timeshares.

Title insurance

Other costs may include escrow services and title insurance. Escrow is a secure account that is normally held on behalf of the buyer by either an escrow or title company. It is used to deposit all funds from both buyer and seller until the timeshare closing has been finalized. Once this happens the funds are released to the appropriate parties.

Title insurance is important as it could potentially save a buyer a lot of money and possibly increase the resale value of the timeshare. It is a document that verifies that the title of the property is clear of liens (legal claims against the property), CCJ's (county court judgements) and claims from others declaring an interest in the timeshare. This is obtained through a title insurance company. Title insurance is difficult to find where right to use and vacation club timeshares are concerned but if it is available it would be wise to get it.

Using a broker

Timeshares for sale through brokers may not necessarily sell quicker than those sold by private owners but if you get the right company it can save you some time. Brokers may charge between 20 to 40 percent of the selling price but always use caution when hiring their services. Choosing a broker who charges a commission on sales rather than an upfront fee is a good move. Fraudulent companies tend to charge upfront fees as a way of getting money without having to produce results first. Always make sure the broker is certified. Click here to learn more on how to avoid timeshare scams.

Ongoing fees

A maintenance fee, or annual assessment, is charged every year to pay for repairs and general upkeep of the resort's amenities, grounds and facilities. To read more about this go to maintenance fees. Vacation clubs charge an annual membership which is in addition to the maintenance fees. Most offer three year or five year subscriptions at a discount making the equivalent annual fees cheaper. There are also exchange fees if you want to trade your timeshare for another vacation.