Timeshare Membership Terminated for Delinquent Maintenance Fees

Someone I know owns a deeded timeshare and in 2014 her membership rights were terminated due to unpaid maintenance fees. My question is what should she do since there is still a deed in her name? The resort is willing to let her deed it back but what would be the benefit to doing that. Can she try to sell it to a 3rd party or no since her membership was cancelled? Thank you.

davidb2076 wrote:

Someone I know owns a deeded timeshare and in 2014 her membership rights were terminated due to unpaid maintenance fees. My question is what should she do since there is still a deed in her name? The resort is willing to let her deed it back but what would be the benefit to doing that. Can she try to sell it to a 3rd party or no since her membership was cancelled? Thank you.

If there is an actual deed, then it is an ownership, not just a “membership”. That deed will remain officially recorded in her name until resale (or foreclosure), although use and access will obviously be denied in the meantime unless maintenance fees are fully paid up to date. For that matter, almost all resorts that accept deedbacks require that fees first be fully paid up to date. Some resorts (not all) even require that a year or two of maintenance fees be paid in advance as part of their agreement to accept a deedback.

Your references to “cancellation” and “membership” suggest that this might not be a deeded ownership at all, but perhaps a RTU (right to use) contract, which does not involve a deed.

In any event, a transfer of ownership or membership will first require that there are no unpaid fees or loan balances associated with the account.

Take the deed back and never look back . There are people in the forums that would jump at the chance to take a deed back that easily .