FAQs

1. How do I know if timeshare right for me?

2. What is a timeshare? Is it the same as vacation ownership?

3. After I purchase a timeshare, what there other costs are involved?

4. Am I able to use my timeshare week from my home resort for another week in another location?

5. What is the difference between a fixed and a floating use program?

6. What is a point system?

7. What is the difference between purchasing timeshare directly from the resort company and purchasing timeshare from a used timeshare interest?

8. What are timeshare vacation clubs? Are they other types of vacation clubs?

9. What are fractionals/private residence clubs? How are they different from timeshares?

10. How can I resell my timeshare?

11. Can I rent a timeshare?

12. Will I receive a deed with my timeshare purchase? Is it important to receive a deed for my purchase

13. How is the timeshare industry regulated?

1 . How do I know if timeshare right for me?

A timeshare is best suited for people who take at least one week of vacation a year and who want more space and options than commonly offered by a hotel room. The most popular timeshare units offer furnished two bedrooms, two baths, an equipped kitchen and living room. Families enjoy having both privacy and home-like common areas to enjoy vacationing together. If you seldom take a vacation or are looking for real estate investment, timeshare is NOT the right option for you.
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2 . What is a timeshare? Is it the same as vacation ownership?

Timeshare and vacation ownership are often used as interchangeable terms. Timeshare may be purchased through deeded property ownership, right-to-use or a points-based program. Owners purchase a villa, usually in one week increments, within a fixed or “floating time” system, which allows scheduling each year’s vacation during the owner’s desired week within a specified season. Vacation ownership may also be used to describe the three main options of shared use: timeshare, fractionals, and private residence clubs.
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3 . After I purchase a timeshare, what there other costs are involved?

Yes. As a partial owner of a real interest, you will pay an annual maintenance fee to cover the costs of running the resort, including daily management, upkeep, and improvements. As an owner, you also pay a percentage of annual real estate property taxes.
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4 . Am I able to use my timeshare week from my home resort for another week in another location?

The exchange program enables owners to trade their timeshare for comparable accommodations at other resorts throughout the U.S., as well as internationally.

 

Most resorts are affiliated with an exchange company, and many resort companies also offer an internal exchange program within their resort group. There are two major exchange companies, Interval International and Group RCI, and several smallers ones that help owners streamline the process - making it an easy on-line or telephone interaction. There is often an annual membership fee to belong, plus owners pay a fee when an exchange is made. Some fractional and private residence club resorts also offer exchange opportunities for their owners.

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5 . What is the difference between a fixed and a floating use program?

A fixed program means the owner owns the right to occupy the same week every year at a resort. A floating program, at most resorts, refers to an owner having flexibility to reserve a week within a unit type within a certain season, based on availability. There are also variations of these programs.
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6 . What is a point system?

Points generally represent the relative use management value of the timeshare or fractional interest purchased. There are a few companies that offer “pure points” without the sale of an underlying specific real estate interest. By purchasing points, the consumer can use them to reserve different combinations of accommodation sizes, locations and seasons, and may also be able to acquire a variety of travel services depending on the rules of the program. Like a currency, points are symbolic of the product or service being used or reserved.

 

Purchasing points allows the owner to utilize them for more flexible vacations and other vacation-oriented products, such as rental cars, cruises and hotel nights. Resort companies’ points programs differ from one another, so carefully review the terms of the agreement to best understand how points are utilized at each resort offering.

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7 . What is the difference between purchasing timeshare directly from the resort company and purchasing timeshare from a used timeshare interest?

Timeshares bought from a developer usually come with closing incentives, such as a year’s free membership with the resort’s exchange company, exchange within the company’s family of resorts, additional time at the resort or other benefits. The timeshare development industry is highly regulated by each state and offers stringent consumer protections, such as a right of rescission. The resale market is not as heavily regulated, and therefore may not offer the same consumer protections or benefits. If you decide to sell or purchase a timeshare through a resale company make sure it is a well established, reputable company. Also, know exactly what you’re getting if a resale company charges an upfront fee.
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8 . What are timeshare vacation clubs? Are they other types of vacation clubs?

This is a marketing term and generally describes a company or related group of resorts that offers vacation accommodations in more than one location. An interest in a vacation club is either deeded or non-deeded like any other vacation ownership interest. If the vacation club interest is deeded, the consumer is usually said to own at a “home” resort at which he or she has a priority right of use. Even if the vacation club interest is not deeded, the owner could still have a home resort or a “membership” in the club that entitles use of any of the club’s resorts. Vacation clubs offer highly flexible use of multiple resorts, subject to certain advance reservation priorities and rules. Some well-known timeshare companies market their properties as a vacation club that provides both a deeded interest in real property and multi-site flexibility. There are also some travel clubs that may use the marketing term “vacation club.” Travel clubs offer a membership for discounted hotel or other accommodations and should not be confused with a timeshare product.
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9 . What are fractionals/private residence clubs? How are they different from timeshares?

This product segment is represents another tier of the shared leisure real estate market. Owners typically purchase accommodations with related use rights in increments of more than two weeks and sometimes as long as three months (a quarter share). This type of ownership is almost always deeded and is a more affordable alternative to a second home. Owners benefit by avoiding the ongoing maintenance responsibilities of an entire second home, and usually enjoy a high level of service as part of the product.
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10 . How can I resell my timeshare?

If you are interested in selling your timeshare, check first with the resort developer or resort management company to see if either offers a resale program or is affiliated with a licensed broker that handles resales. If so, ask for the statistics on past resales.

 

If you purchased in a resort area, there may be local brokers who handle resales. Unless you are selling the timeshare yourself, you should try to deal only with licensed real estate professionals. Check the real estate or classified section for listings or with the state Real Estate Commission where the resort is located. Commissions can range from 10 to 30 percent because prices are low when compared to home sales.

 

Timeshares should be purchased and sold as a use product for enjoying vacations for many years, even though they often convey a real estate interest. Many factors influence the resale price, including season, location, unit size, age of the resort, and availability of new product in the market. See our section on selling tips.

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11 . Can I rent a timeshare?

Most resorts offer the option of renting a timeshare, based on availability. If you are interested in renting a particular resort or property, inquire with that resort or visit the website of the resort company to learn more about their rental policies.

 

If you own a timeshare and find you cannot use it for a certain time period, check with your resort company. You may be able to rent it out yourself, have the resort or exchange company rent it out for you, or you may be able to “bank” your timeshare week as a credit for larger accommodations or other options the following year.

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12 . Will I receive a deed with my timeshare purchase? Is it important to receive a deed for my purchase

All shared ownership resort interests come in two basic forms: a deeded interest in real estate and a right-to-use, or non-deeded, interest. These two basic forms are called by many names—some required under state law and others adopted for marketing purposes. However, the majority of shared ownership resorts today convey a use right backed by a deeded interest in real property—by whatever name it may be called. Deeded real estate interests are usually called “timeshare estates” under state law, and non-deeded interests are “timeshare uses” or “timeshare licenses” officially, but may also be called “memberships.”
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13 . How is the timeshare industry regulated?

Vacation ownership companies must comply with strict standards set forth in state timeshare regulations. As a result, purchasers have a five- to seven-day rescission period in most states that allow them time to cancel a purchase contract for any reason and get their money back. Timeshare regulations require truth in advertising, protect purchasers’ timeshares from the developer’s debt, and assure that purchasers receive detailed information about the timeshare plan they are buying, including the type of timeshare interest, how to use the product, management and budget information and much more. State timeshare laws usually apply whether the vacation product is called a timeshare, fractional, private residence club, vacation club or points product. Be aware that when purchasing a resale property, these protections may not apply.
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