Do you file a quitclaim deed in the state where the property(timeshare interest) is located or the state where both parties reside.

A deed gets filed in the state and county where the property is located.

It is filed only in the County where the property is located. Filing it anywhere else won't be possible as the instrument will be denied by the County Recorder's Office if improperly filed. At the top of the Deed is the listed State and County and legal property description. The folks down at the Recorder's Office are rather picky about not filing wrong Deeds.

... Filing it anywhere else won't be possible as the instrument will be denied by the County Recorder's Office if improperly filed. ...

And even if it were possible, it wouldn't have any effect.

And even if it were possible, it wouldn't have any effect.

Believe it or not a deed WAS filed in a different/wrong county here in Ohio! Apparently the Clerk was asleep that day. Took a bit to get untangled as it was legally registered in that County.

I believe it Twinkie. I've seen it happen in NJ. Makes a mess. :)