General Timeshare Information

With a timeshare, an individual can save on his vacation costs,c as opposed to purchasing a property outright or staying at a hotel. Timeshares allow vacationers to purchase a share in a property that gives them to right to use a property for a set number of days or weeks every year. Timeshare properties usually take the form of apartment units that range in size from studios to larger units that can house large families and have many modern amenities, such as dining facilities and appliances. Buyers can choose from two different types of timeshares.

Ownership

    With deeded timeshare ownership, an individual chooses to purchase a legal share of the property with the right to use the property for a specific time period every year. Timeshare owners can sell, rent or gift their share of the property, and all shareholders collectively own the property. With a deeded timeshare, individuals must pay annual maintenance fees, property taxes and homeowners' association fees for the management of the timeshare property. Unless a stakeholder buys a deeded timeshare for cash, he must make monthly mortgage payments on his share of ownership.

Intervals

    With a right-to-use timeshare, a developer owns the property, and the timeshare owner pays a yearly fee to vacation at the property for a set or variable period of time --- the interval --- every year for a set number of years. Individuals still own real property in the form of the time interval, which they can sell or transfer, but they do not share in the actual ownership of the property. In addition to a yearly fee, timeshare owners pay an annual maintenance fee for upkeep on the property.

Time Frame

    With a deeded timeshare, an individual has the right to use a unit at a specific time that remains the same every year, allowing for minimal flexibility in vacation times. A right-to-use timeshare can have a fixed time option every year or a floating time frame in which the timeshare owner can choose the week in which she wants to vacation. Deeded timeshares last until the owner stops making payments or sells or transfers the share. Right-to-use timeshares usually for last a set period of time ranging between 10 and 50 years, according to the Federal Trade Commission.

Purchase

    Shoppers should look closely at the location of a property or resort, taking time to talk to other timeshare owners about their opinion of the property. An individuals can buy a timeshare from a developer or on the secondary marketplace from an owner wishing to sell his share. According to RedWeek, a buyer can typically purchase a timeshare on the secondary market for 35 to 50 percent less than the developer price.

Warning

    Timeshare shoppers should avoid high impulse sales tactics when considering the purchase of a timeshare, and most states allow buyers a right to rescission --- the option to cancel their contracts --- within a set period of days if they regret the purchase. In addition, prospective buyers should check for complaints about a development owner through the Better Business Bureau and the office of the state attorney general if purchasing a share from a developer or management company.



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