Who is responsible for paying assessments on unsold timeshare interests?

The responsibility for paying assessments on unsold timeshare interests falls to the developers. Developers of timeshare properties have a financial obligation to cover costs that arise from unsold interests. This includes maintenance fees, property taxes, and other related expenses associated with the upkeep of the property until the timeshare interests are sold.

The rationale behind this is that developers are the ones who create and market the timeshare product, and they retain ownership of the unsold units. Therefore, they must manage the financial aspects related to those units until they are transferred to buyers. Assessments are typically a way for the homeowners’ association or management to fund the ongoing operations of the property, and since unsold units do not generate income, it is the developer's responsibility to ensure these costs are covered.

In contrast, buyers are typically responsible for assessments on units they have purchased, escrow agents handle funds during the property transaction process, and salespersons do not hold any financial responsibility for the assessments connected to unsold timeshare interests. This delineation of responsibilities is crucial for managing the financial health of timeshare developments.