Free Secerts to Timeshare

Timeshare buyer's FAQ:

Q. What is timeshare? A. A timeshare is a type of vacation property ownership in which the owner has a deeded or right to use agreement with a resort for a designated period of time. Timeshares have become a great alternative to the high cost of owning a vacation home.

Q. What is the difference between deeded and right to use? A. A major difference in types of vacation ownership is that between deeded and right to use contracts. With deeded contracts the use of the resort is usually divided into week long increments and these are sold as fractional ownership and are real property. As with any other piece of real estate the owner may use his or her week, rent his or her week, give it away, leave it to his or her heirs or sell the week to another prospective buyer. While this form of ownership can offer additional security to the owner as a form of physical ownership, deeded ownership can be as complex as outright property ownership in that the structure of deeds varies according to local property laws. Leasehold deeds are common and offer ownership for a fixed period of time after which the ownership reverts to the Freeholder. Occasionally, leasehold deeds are offered in perpetuity however many do not convey ownership of the land but merely the apartment or 'unit' of accommodation. With right to use, the purchaser has the right to use the property in accordance with the contract but at some point the contract ends and all rights revert to the property owner. In other words, the right to use contract grants the right to use the resort for a specific number of years. In many countries there are severe limits on foreign property ownership, so this is a common method for developing resorts in countries such as Mexico. Disney Vacation Club is also sold as a right to use. Care should be taken with this form of ownership as the right to use often takes the form of 'club membership' or right to use the reservation system. Where the reservation system is owned by a Company not in the control of the owners, the right of use may be lost with the demise of the controlling Company.

Q. Where are timeshares located and where should I purchase mine? A. Timeshares are all over the world, most people purchase at: " A resort that they can trade for other locations. " A resort in their local area they can drive to. " A resort in a specific location that they would enjoy vacationing at several times.

Q. What if I want to see the resort before I purchase? A. You have a couple options to do this, one is to rent from a person who is trying to sell theirs or rent theirs. Another way is to good to the resort on a vacation package which will save you hunderds of dollars on your stay and also, allow you to do a tour of the property.

Q. What is a maintenance fee? A. The maintenance fee is an annual charge, on top of your initial purchase cost, that goes toward the upkeep of your timeshare. Your maintenance fee usually covers property taxes, insurance, utilities, cable, telephone, and all property up keep such as furniture, carpet, and the common facilities of the resort. Usually, the resort's Homeowners Association decides this fee.

Q. What is a transfer fee? A. A transfer fee is a cost that resorts charge to transfer ownership from one party to another. This fee applies directly to resale timeshares. Transfer fees are determined by the resort and will vary depending on what resort you are buying.

Q. What types and sizes of accommodations are available? A. These properties tend to be apartment-style units ranging in size from studio units (with room for two) to three and four-bedroom units. These larger units can comfortably house large families. Units normally include fully equipped kitchens with a dining area, dishwashers, televisions, DVD players and more. It is not uncommon to have washers and dryers either in the unit or easily accessible on the resort. Kitchens are equipped to the size of the unit, so that a unit that sleeps four should have at least four glasses, plates, forks, knives, spoons, and bowls so that all four guests can sit and eat at once. Sleep privately refers to the number of guests who will not have to walk through another guest's sleeping area to use a restroom. Timeshare resorts tend to be strict on the number of guests per unit. Unit size can affect demand at a given resort where a two-bedroom unit may be in higher demand than a one-bedroom unit at the same resort. The same does not hold true comparing resorts in different locations. A one bedroom with a great location may still be in higher demand than a resort with less demand. An example of this may be a one bedroom at a great beach resort compared to a two bedroom unit at a resort located inland from the same beach. Sizes of units vary from resort to resort, but as a rough guideline are broken down by bedroom number and how many adults they sleep. Here is the breakdown: Hotel Unit Sleeps 2 Studio Unit Sleeps 2 to 4 One Bedroom Unit Sleeps 4 to 6 Two Bedroom Unit Sleeps 6 to 8 Three Bedroom Unit Sleeps 8+

Q. What is a fixed week? A. A fixed week is ownership of a specific week of usage each year. The first week of the year will be designated as week #1, and the last week of the year will be week #52. Usually, fixed weeks are assigned to a fixed condominium unit as well.

Q. What is a floating week? A. A floating week means that the week you own is not a pre-determined week. A floating week guarantees you one week within a certain time period based on what season rating your membership is. An example of this may be a floating summer week where the owner may request any week during the summer season generally weeks 22 through 36. In this example there would be competition for prime holidays such as the weeks of Memorial Day, Fourth of July and Labor Day. The weeks when schools may still be in session would not be so high in demand. Some floating contracts exclude major holidays so they may be sold as fixed weeks. If you plan on exchanging your floating week, you will need to make a reservation before you deposit your week with the exchange company.

Q. What is a rotating week? A. Some timeshare weeks are sold as rotating weeks. In an attempt to give all owners a chance for the best weeks, the weeks are rotated forward or backward through the calendar, so one year the owner may have use of week 25, then week 26 the next year and then week 27 the year after that. This method does give each owner a fair opportunity for prime weeks but it is not flexible.

Q. What is a point system? A. A point system is a vacation ownership in which you own points that represent the quality of the unit you will have. More points translate into higher season ratings, larger accommodations, and better trading power. For example, a low season studio unit may take 100 points to reserve the time, but a high season two bedroom unit may require 300 timeshare points. Most systems will allow you to borrow from future years or to carry over unused points to the next year.

Q. What is a lock-off unit? A. Lock-off units may be divided into two or more smaller units for exchange or usage purposes. For example, a two bedroom lock-off may be divided into a one bedroom and a studio, or some other configuration which the particular resort will provide. Usually one of the units is used for exchange purposes giving the owner the ability to vacation an additional week each year. Remember that you will no longer have the use of your large unit, but it will be in two or more smaller units.

Q. What is a deeded property? A. A deeded property is one in which the property title does not expire. Once you own it, it's yours until you decide to sell it, much like home ownership. Deeded properties may also be passed to your heirs.

Q. What is leased or certificate property? A. A right to use your timeshare for a specified number of years. At the end of this period the property reverts back to the developer. Some resorts allow accelerated usage which means that you may borrow usage from future years. to do so you will normally pay the maintenance fees for the accelerated usage.

Q. What is life property? A. A membership which allows usage each year for the owner's lifetime.

Q. What is a stock company? A. Resorts issue shares of ownership in the property or properties which they are selling. Rather than owning a deed to a property, you own shares in the company which entitles you to vacation time each year.

Q. What is a vacation club? A. Vacation clubs are organizations that may own units in multiple resorts in different locations. Some clubs consist only of individual weeks at other developer's resorts. They are sold both as deeded or right to use and club members may reserve vacation time at any of the owned resort units based on availability. Vacation clubs cater to a wide range of economic backgrounds and income levels.

Q. Are there additional fees involved in the purchase of a timeshare? A. Yes. As in many property transfers there are fees involved. You should expect to pay for preparation of the transfer documents, a maintenance fee and the recording and transfer fees which are determined by the county and resort. These may total a couple to several hundreds of dollars. Of course, all costs will be disclosed and accounted for before you purchase.

Q. How soon after purchase will I get my deed/certificate to the property? A. The usual time frame is ninety to one hundred and twenty days. There are exceptions to this, as some counties take longer to process transfers. We do keep you informed about the circumstances and any situation which may cause a delay in transfer.

Q. Can I ever sell my timeshare? A. Yes. Once you are the legal owner of a timeshare week, you may sell it at any given time.

Q. How soon may I use it after purchasing? A. As soon as the ownership has been transferred into your name, you may contact the resort and exchange company to start active participation.

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I've been in the timeshare industry for almost 15 years. I am now using my knowledge to help individuals who own timeshare, want to get into the industry or are in the industry that are looking for more information about timeshare.