What percentage of a deposit must be placed in independent escrow for a timeshare transaction?

In a timeshare transaction, placing 100% of the deposit in independent escrow is essential for ensuring that the buyer's money is protected until all conditions of the sale are met. This requirement fosters trust in the transaction process, as it provides a neutral third party that holds the funds, preventing either party from accessing the money until both have fulfilled their obligations as outlined in the sales contract.

The escrow arrangement acts as a safeguard for buyers, ensuring that their financial commitment is secure and that the terms of the sale are honored. It also encourages compliance from the seller, knowing that they will not receive any funds until the transaction is properly executed according to the agreed-upon terms.

While other percentages might be relevant in different contexts or states, Tennessee law explicitly mandates the full amount of the deposit to be held in escrow for timeshare purchases to protect both parties involved in the transaction process.