When is an escrow account required in selling timeshares?

An escrow account is typically not required when selling timeshares because it is often the decision of the seller or the developer whether to use one. Instead, escrow accounts are used in real estate transactions to hold funds securely until certain conditions are met, such as the closing of a sale. In the case of timeshares, there are specific regulations and practices that may not necessitate the use of an escrow account, particularly if the sale involves registered developers with established protocols. Understanding these regulations is essential, as they can vary by state, but generally, if the seller satisfies legal requirements and the transaction is straightforward, an escrow account may not be deemed necessary.