What is meant by an "escrow of deposits" in timeshare practices?

An "escrow of deposits" in timeshare practices involves an independent company holding funds on behalf of the parties involved in a transaction until certain conditions are met. This arrangement is crucial for ensuring that the money is safeguarded and that both buyers and sellers fulfill their obligations. The independent escrow company helps to build trust between the parties, as it ensures that funds are not released until all agreed-upon terms are satisfied, such as the successful transfer of ownership or fulfillment of specific contract criteria.

In addition, keeping deposits in escrow protects consumers from potential fraud or mismanagement, as the funds are not controlled by either party directly until all conditions of the sale are met. This practice is a common safeguard in various real estate transactions, including timeshares, and is important for maintaining fairness and transparency in the process.