What must occur before escrow can be closed in a timeshare transaction?

What must occur before escrow can be closed in a timeshare transaction?

• A. Buyer's check clears his bank
• B. Project is free and clear of any blanket encumbrances
• C. Cancellation period has expired
• D. All necessary inspections are completed

Answer: (A)

In a timeshare transaction, one of the critical steps that must occur before escrow can be closed is that the buyer’s check clears his bank. This requirement ensures that the funds intended for the purchase are valid and available, which protects both the seller and the buyer. When the buyer's check clears, it confirms that the buyer is financially capable of completing the purchase, thus allowing the transaction to proceed. While other aspects, such as ensuring the project is free from encumbrances, expiration of the cancellation period, and completion of necessary inspections are important to the overall process, they are not the primary determining factor for closing escrow. The clearance of funds is essential for the transaction to officially move forward and for the title to be transferred without risk of payment issues.

In a timeshare transaction, one of the critical steps that must occur before escrow can be closed is that the buyer’s check clears his bank. This requirement ensures that the funds intended for the purchase are valid and available, which protects both the seller and the buyer. When the buyer's check clears, it confirms that the buyer is financially capable of completing the purchase, thus allowing the transaction to proceed.

While other aspects, such as ensuring the project is free from encumbrances, expiration of the cancellation period, and completion of necessary inspections are important to the overall process, they are not the primary determining factor for closing escrow. The clearance of funds is essential for the transaction to officially move forward and for the title to be transferred without risk of payment issues.