How to Gift or Transfer Your Timeshare Without Damaging Your Credit


It is a common scenario: you have enjoyed years of vacations, but your lifestyle has changed, or perhaps you have inherited a property that simply doesn’t fit your needs. You might think, "I’ll just give it away for free to a friend or family member." While gifting a timeshare is a generous gesture and a viable exit strategy, it is not as simple as handing over a set of keys.

Because a timeshare is a legal financial obligation, an improper transfer can lead to missed payments, collection calls, and significant damage to your credit score. To protect your financial standing, you must treat the "gift" as a formal real estate transaction. Here is how to navigate the transfer process safely and professionally.

The Golden Rule: Payments Must Continue Until the End

The most critical factor in protecting your credit is to keep paying all maintenance fees and taxes until you receive written confirmation from the resort that the transfer is complete.

Many owners make the mistake of stopping payments the moment they find a "taker." However, the legal responsibility remains yours until the deed is recorded and the resort’s internal records are updated. A single missed payment during the transition period can result in a 30-day late mark on your credit report, which can linger for seven years.

Step 1: Verify Eligibility and Resort Policies

Before promising the timeshare to a loved one, you must confirm that the resort will allow the transfer.

  • Check for "Right of First Refusal" (ROFR): Some contracts state that if you want to transfer or sell the unit, the resort has the first right to "buy" it back (or take it back) under the same terms.

  • Identify Transfer Fees: Nearly all resorts charge a transfer fee to process the paperwork and update their system. These fees typically range from $300 to $1,500. You should decide upfront whether you or the recipient will cover this cost.

  • Account Status: The resort will not approve a transfer if there is an outstanding mortgage balance or past-due maintenance fees. The account must be at a "zero balance."

Step 2: Choose the Correct Legal Instrument

How you transfer the property depends on how the ownership is structured.

For Deeded Property (Real Estate)

If you own a "deeded" timeshare, you actually own a fraction of the real estate. To gift this, you must execute a new deed—often a Quitclaim Deed.

  • This document must be drafted according to the laws of the state where the resort is located.

  • It must be signed, notarized, and recorded with the County Recorder or Clerk in that specific jurisdiction.

For Right-to-Use (Contractual/Points)

If your timeshare is a "Right-to-Use" or a points-based membership, you don't own real estate; you own a contract.

  • In this case, you will typically use an Assignment of Membership form provided by the resort.

  • The resort acts as the gatekeeper and must officially "assign" your points or membership number to the new owner.

Step 3: Use a Licensed Closing Company

Even when gifting to a family member, it is highly recommended to use a licensed timeshare closing or escrow company. They act as a neutral third party to ensure the following:

  1. Title Search: Confirms the title is clear of liens.

  2. Document Preparation: Ensures the deed or assignment is legally sound.

  3. Recording: Handles the filing with the county and the notification to the resort.

  4. Escrow: If the recipient is paying the transfer fees, an escrow account ensures the money is handled properly.

Using a professional prevents the "limbo" state where you think you have gifted the property, but the resort continues to bill you because the paperwork was filed incorrectly.

Step 4: The Final Confirmation

Your exit is not official until you receive a "Welcome Letter" or a "Transfer Confirmation" addressed to the new owner from the resort. Once you have this document:

  • Contact the resort to ensure your name has been removed from the billing system.

  • Cancel any "Auto-Pay" or recurring credit card charges associated with the maintenance fees.

  • Keep a permanent copy of the recorded deed and the resort’s confirmation letter in your files.

A Note on "Gifting" to Charities

You may have seen advertisements for "Donate Your Timeshare to Charity." Be extremely cautious here. Most legitimate charities (like the IRS-approved 501(c)(3) organizations) no longer accept timeshares because the ongoing maintenance fees represent a liability rather than an asset.

Scammers often pose as "charity facilitators" to charge you large upfront fees. If you wish to donate, contact the charity directly and ask if they accept deeded timeshare interests. If they say no, stick to gifting to an individual or exploring a deed-back program with the resort.

Protecting Your Legacy

Gifting a timeshare can be a wonderful way to pass on the joy of travel, provided the recipient fully understands the annual costs involved. By following the legal steps and maintaining your payments until the very last signature is recorded, you can ensure that your act of generosity doesn't become a burden on your credit score.


Breaking Free: Your Practical Guide on How to Get Out of a Timeshare Permanently