In the timeshare resale closing process, an estoppel is a document that is produced by the developer of the timeshare that is being transferred with the purpose of verifying the attributes of the ownership. This can include the details of the ownership itself such as the usage rights, deeded season, annual point allotment (if applicable), deeded week number, among other pertinent items. Estoppels also commonly include financial information such as verifying the annual maintenance costs, and stating any outstanding assessments, loan balances or maintenance fees.
Some resorts may require a fee to be paid for an estoppel or status letter to be drafted. Receiving an estoppel is an important step in safely transferring a timeshare resale. This documents can help ensure that the buyer is receiving the exact timeshare they were contracted to receive, as well as ensuring the seller has paid all outstanding maintenance fees leading up to the closing process.
