Another form of a timeshare relief company is known as a “transfer company,” where the methodology is not to determine what the resort developers are looking to replenish, but to transfer the ownership of the interest away from the owner. In this case, “transfer to whom?” becomes the issue. There aren’t many people looking to acquire timeshare interests on the secondary market in light of rising annual maintenance fees. Some of the more imaginative timeshare relief companies create brand new business entities, corporations, and LLCs for the sole purpose of taking title to the unwanted properties. Recall that this method only applies when there are no mortgage or maintenance fee liens on the interest that would impair the transfer.
This new concept was effective for a while, but as the developers and property owners associations have learned the hard way, when the next maintenance fee bill comes due, these ‘no asset’ entities are defaulting on their obligations. Developers and property owners associations will no longer, generally speaking, permit transfer of title to either an unknown entity with no credit rating, nor to individuals who won’t agree to be credit checked as a condition of their acquisition.