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"Spot on", as the Brits would say... (by KC):

adahiscout wrote:

Maybe it would help the resale buyer( asking about giving a timeshare to an LLC) if he thought of it as having bought a house. The contract may not mention that he will need to pay taxes on the house or pay for street repairs etc. but these expenses are standard parts of home ownership. Paying the annual maintenance fee is a standard part of timeshare ownership. If he sells or gives it to a willing LLC and it takes full contractual ownership (just as he originally did), I would assume that subsequent MF obligations would then devolve upon that new owner. But be very sure that the legal transfer was made and acknowledged by the timeshare company! If you created an LLC yourself for the purpose of taking over unwanted timeshares and with the intent of not paying the related obligations, then we surely are talking fraud. (Does this sound right, Ken? Or am I missing something?) MD

You've mostly hit the nail correctly and squarely on the head.

One critically important and relevant distinction / difference here in regard to the "house" analogy is that a timeshare has, by definition, some very specific underlying (and governing) condominium documents. It is, in fact, these very underlying governing documents, whose existence is specifically referenced within a deed, which identify, carry (and transfer to each subsequent interval owner) specific use rights and specific obligations (i.e., maintenance fees) to and upon each and every interval owner. It is completely irrelevant whether it's a developer or resale purchase, it's completely irrelevant whether or not there is a signed contract executed in the course of a resale, and it's completely irrelevant what the "consideration" in any purchase might be (whether it's free, ten cents, or ten thousand dollars matters not one bit). A properly prepared, recorded and accepted deed transfers ALL of the underlying governing documents' rights and responsibilities to the new owner upon deed acceptance.

That said, you are absolutely correct that creation or use of a LLC solely to attempt to hide from or to attempt to escape from an existing legal obligation is nothing but outright FRAUD, plain and simple. Fraud is a CRIMINAL offense, so anyone considering travelling toward that particular town should think long and hard before trying to take that very dangerous "exit"...