Closing Costs

On a Time Share sale. Who normally pays the closing costs. Are the costs shared or are there costs that are normally the buyers or sellers responsibility. And if there is a loan involved, will the escrow company hold the deed until full payment has been made? I'm sure this question has been answered before, but I can't find how to search on this forum. Thank you, Lloyd

lloydo3 wrote:

On a Time Share sale. Who normally pays the closing costs. Are the costs shared or are there costs that are normally the buyers or sellers responsibility. And if there is a loan involved, will the escrow company hold the deed until full payment has been made? I'm sure this question has been answered before, but I can't find how to search on this forum. Thank you, Lloyd

In the old days (before this bad economy) the buyer normally paid for closing, but with most timeshares being sold for pennies on the dollar and owners merely wanting out of paying yearly maintenance fees, many owners now pay for closing.

An escrow company holds all monies until the transaction is complete, however I'm not sure what you mean by 'if a loan is involved'. What kind of loan are you referring to?

Lloyd...may apologies for my tardy response.

When purchasing from the developer, the buyer assumes the closing costs. However, you should always try to negociate these costs as some developers will "knock them off."

When you purchase from a reliable reseller or an individual, as with the ads here on RedWeek.com, more often than not, you will also assume the closing costs. Some owners are really motivated to sell their timeshare, so they may be willing to either lower them or assume the costs.

One word of warning...if a company or an individual is really in a rush to get rid of the timeshare, you should have your guard up!

As far as the mortgage/deed issue goes, that depends on the individual state. Some states hold the deed until the mortgage is satisfied, others will not. You can always check with the state Attorney General who can refer to you the proper office.

Thanks for the great questions!