We need to clarify. We're not talking about a situation where someone owes money on a timeshare mortgage. We're talking about a free and clear timeshare. The owner would only be leaving the obligation to pay annual maintenance. So, it would compare to a home owned free and clear, where you only stopped paying the taxes. The government would foreclose, IF it had any value, which many timeshares don't at the moment. But, that government foreclosure will NOT show on your credit and does not leave you open for a deficiency judgment. The only risk is from the timeshare coming after you. If you've deeded it to a willing third party entity, even a company formed for the purpose of owning timeshares no one wants, and you've paid the transfer fee to the resort and given them the recorded deed, they can't come after you either. So, you're FREE of your timeshare obligations. If what I'm writing is incorrect, please explain exactly why. I'm trying to figure this out. So far, no one has given a valid reason.
By the way, several have mentioned the "moral" issue. I take "moral" issues seriously. But, this is NOT the same as a mortgage you've promised to pay. In this case, you've simply accepted a free timeshare from someone, or purchased it and paid for it. You have the right to stop owning it and stop paying to maintain it. You do NOT have an obligation to continue to pay for the rest of your life just because other owners would suffer. They have the same ability to divest their timeshare if desired.
This reply carries the following disclosure, this is not intended to be legal advice, to get legal advice, one must consult a lawyer.
Ok, first, you did accept the timeshare, free was the consideration. Look at your deed, see in the legal description where you have wording that looks something like this:
This conveyance is subject to and by accepting this Deed, Grantee does hereby agree to assume and abide by the conditions and restrictions imposed by the following:
1. Taxes for the current year and subsequent years;
2. Conditions, restrictions, limitations, reservations, easements and other matters of record, including but not limited to the Declaration;
3. The specific use restrictions set forth in the XXXXXX Vacation Club Resort Agreement, as the same may be amended from time to time, an initial copy of which is attached as Exhibit "F";
4. The specific use restrictions set forth in the rules and regulations contained in the Disclosure Statement for Club Members of the XXXX Vacation Club, as the same may be amended from time to time, an initial copy of which is attached to the Declaration as Exhibit "G".
Lets look at this in what it says. This conveyance is subject to (means you agree to the following) and by accepting this deed (means you took it and accepted the deed from the seller (grantor)), hereby agree to assume and abide by the conditions and restrictions imposed by the following (says you promise to be bound to the things listed below):
Now, do you see the part about the Declaration of Condominium or the part in 2) above. The recorded Declaration spells out maintnenance fees and assessments.
When you took this deed from whoever gave it to you you agreed to be bound by all the requirements in the Declaration. So you do have a financial obligation to the resort.
Then you ask about deeding it to someone else unbeknownst to them. First a timeshare follows the real property acts in all states. You have bought real property, it is called a condominium that you have limted use to. You agreed to that when you accepted the Declaration of Condominium.
To convey property you have to have all of the following conditions.
Traditionally and under common law, to be valid and enforceable, a deed must fulfill several requirements:
It must state on its face it is a deed, using wording like "This Deed..." or "executed as a deed".
It must indicate that the instrument itself conveys some privilege or thing to someone. This is indicated by using the word hereby or the phrase by these presents in the clause indicating the gift.
The grantor must have the legal ability to grant the thing or privilege.
The grantee must have the legal capacity to receive it.
It must be executed by the grantor in presence of the prescribed number of witnesses, known as instrumentary witnesses (this is known as being in solemn form) or be notarized.
A seal must be affixed to it. Originally, affixing seals made persons parties to the deed and signatures were optional, but most jurisdictions made seals outdated, and now the grantor and either witnesses signatures or notarization are primary.
It must be delivered to (delivery) and accepted by the grantee (acceptance).
It should be properly acknowledged before a competent officer, most often a notary public.
If you notice there has to be ACCEPTANCE. If the Grantee does not accept the deed, it is not a valid conveyance. This is why if you try to deed it to the resort, and yes, most watch the public records on a regular basis to see if someone is filing deeds back to them, they then record an Affidavit of Non-Acceptance which says they did not accept the deed and it is still yours.
So now, you want to set up a sham company, opps, I mean a shell company. So you deed it in to the shell company so that it is out of your name, but to set up a company, most states require that you have Officers or Managers.
As soon as you deed that to the shell company and pay the resort the transfer fee, you have effectively made the shell company the owner. However, you need to talk to an attorney because in many states, as soon as that company is dissolved, the officers/managers may become personally liable. Opps, that puts it all back on you again. Hmm, wasn't that what you were trying to avoid.
Bottom line, like everyone has told you, you agreed to the fees when you took it. Life is full of choices and with those choices come the consequences of our actions (acceptance of the choices).
You made the choice to take a timeshare deed. By doing that you made the choice to pay maintenance fees and special assessments. Now the consequences of that choice, is if you quit paying, you get foreclosed on and you get negitive information on your credit report.
The choice you can make to avoid that is either give it away or sell the timeshare and be done with it.
It reminds me of an old saying, we make choices and sometimes those choices make us. Make the wrong choice and you have to deal with the consequences. Something the younger generation has yet to learn. Its not everyone elses fault for the choices you made. You need to take responsibility for the choices you make.
