What happens to ongoing maintenance fees and other charges while a timeshare is in probate? – North Carolina

Short Answer

In North Carolina, a timeshare’s maintenance fees and other program charges usually keep coming due during probate. If the estate does not pay, the managing entity can add interest and late fees, restrict use rights, and record and enforce a lien against the timeshare. The personal representative typically decides whether to keep paying to preserve the asset for transfer or sale, or to treat it as a debt issue and manage the consequences.

Understanding the Problem

In a North Carolina estate administration, a personal representative may need to decide whether ongoing timeshare maintenance fees and related charges must be paid while probate is pending. The decision often turns on what the decedent owned (a deeded timeshare interest versus a contract-based interest), how the timeshare program bills owners, and whether unpaid charges can attach to the timeshare interest and follow it to a successor. The practical question is what the estate’s responsibility is during the administration period before the timeshare is transferred, sold, or otherwise dealt with by the estate.

Apply the Law

North Carolina’s Timeshare Act gives the timeshare “managing entity” strong collection tools for unpaid assessments and certain other charges. Assessments can accrue interest and late fees, collection costs can be added, and the managing entity can secure the debt with a lien on the timeshare. If the account becomes delinquent, the managing entity can also deny use rights after giving required written notice. These rules matter in probate because the estate may need to preserve value and avoid liens that complicate transfer or sale.

Key Requirements

Ongoing assessments can continue to accrue: Maintenance assessments and other common-expense charges generally keep coming due under the timeshare program’s documents even while the owner has died and the estate is open.
Delinquency triggers added costs and restrictions: If assessments are not paid, the managing entity may add interest, reasonable late fees, and collection costs, and may restrict reservations and use after proper notice.
Unpaid amounts can become a lien and affect transfer: For timeshare estates located in North Carolina, the managing entity can claim a lien for unpaid assessments and may foreclose or sue for a money judgment; unpaid assessments can also follow the timeshare to a successor in interest up to the time of transfer.

What the Statutes Say

N.C. Gen. Stat. § 93A-62 (Delinquent assessments; liens; denial of use) – Allows interest/late fees and collection costs, authorizes denial of use after notice, and provides for an assessment lien that can be enforced (including foreclosure) for North Carolina timeshare estates.
N.C. Gen. Stat. § 93A-61 (Management) – Establishes the role of the managing entity and includes rules that affect records, notices, and administration of the timeshare program.

Analysis

Apply the Rule to the Facts: Here, a deceased person owned a timeshare and the estate is being administered in North Carolina. If the interest is a deeded “timeshare estate” located in North Carolina, unpaid assessments can become a lien against that timeshare and can be enforced even while probate is pending. That means the estate representative’s team usually treats ongoing assessments as a time-sensitive administration issue: either keep the account current to preserve transfer value, or plan for the consequences (late fees, denial of use, and lien activity) while deciding whether and how the estate will dispose of the timeshare.

Process & Timing

Who handles it: The personal representative (executor/administrator) or an authorized agent. Where: The timeshare program’s managing entity (owners’ association/management company) and, if probate filings are needed, the Clerk of Superior Court in the county where the estate is administered. What: Confirm ownership type (deeded timeshare estate vs. contract/use right), request a current ledger, and confirm billing address and notice address for the estate. When: As early as possible after qualification, because assessments and late charges can accrue monthly or annually depending on the program.
Keep current or document a strategy: If the estate intends to sell or transfer the timeshare, the estate often pays ongoing assessments to avoid delinquency and preserve marketability. If the estate does not intend to keep it, the personal representative typically documents the decision and monitors notices, because delinquency can trigger denial of use and lien steps.
Resolve before transfer: Before conveying the timeshare to an heir or buyer, the estate typically confirms whether any unpaid assessments exist, whether a lien has been recorded, and what payoff is required for a clean transfer. This step matters because unpaid assessments can follow the timeshare to a successor up to the time of transfer.

Exceptions & Pitfalls

Deeded vs. non-deeded interests: A deeded timeshare estate located in North Carolina is more likely to involve lien and foreclosure tools tied to the real-property interest. A contract-based “right to use” may be enforced differently and may require a different probate strategy.
Assuming probate pauses billing: Probate does not automatically stop assessments. Waiting for “letters” or for an inventory to be filed can allow late fees, interest, and collection costs to build.
Notice and address problems: Managing entities send delinquency notices to the address in their records. If the estate does not update the mailing address promptly, important notices can be missed, including notices tied to denial of use or lien activity.
Transfer surprises for heirs: North Carolina law can make a successor in interest jointly and severally liable with the prior owner for unpaid assessments up to the time of transfer, which can create conflict if the estate transfers the timeshare without addressing the balance.
Overlooking “other charges”: Besides regular maintenance assessments, programs may bill special assessments, repair charges tied to owner-caused damage, and administrative or collection costs. Some of these can also be secured by lien depending on the charge and the program documents.

Conclusion

In North Carolina, timeshare maintenance fees and similar assessments usually continue to come due during probate, and nonpayment can lead to interest, late fees, loss of use rights after required notice, and an assessment lien that can be enforced against a North Carolina timeshare estate. The key threshold is delinquency, which can trigger written notice no less than 30 days after the due date. The next step is to request a current ledger from the managing entity and decide whether the estate will keep the account current while the timeshare is transferred or sold.

Talk to a Probate Attorney

If a North Carolina estate includes a timeshare and the managing entity is still billing maintenance fees, our firm has experienced attorneys who can help clarify ownership type, deadlines, and options for handling the charges during probate. Call us today at (919) 341-7055.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.