FAQs

1. What is timeshare?

2. How do I know if timeshare is right for me?

3. What are the costs involved with owning a timeshare?

4. Are there ways to test it out before I buy?

5. Are there consumer regulations? What are my protections?

6. Why not just book a hotel for my family vacation?

7. Can I resell my timeshare?

8. If resale companies are unregulated, how do I find a reputable company?

9. What is the difference between buying directly from the developer or from a resale company?

10. Are timeshares a good investment?

1 . What is timeshare?

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 (same week each year) or “floating” system. Floating time allows the owner to schedule each year’s vacation for the 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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2 . How do I know if timeshare is 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 what is commonly offered in a hotel room. The most popular timeshare units are fully, even luxuriously, furnished and offer 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 a real estate investment, timeshare is NOT the right option for you.
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3 . What are the costs involved with owning a timeshare?

Purchase prices vary, depending on the size of the unit, location, amenities, and season of use. Once you are an owner, you will pay an annual maintenance fee to cover the costs of running the resort, including daily management and upkeep. You also pay a percentage of annual real estate property taxes either as part of the maintenance fee or billed separately. The annual maintenance fee and taxes are divided up among all owners based on the size of your unit, amount of vacation time purchased, and season of use.
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4 . Are there ways to test it out before I buy?

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. Most timeshare companies also offer a deeply discounted stay at a resort in return for attending a sales presentation. According to the 2009 Vacation Timeshare Owners Report, conducted by the ARDA International Foundation (AIF), about half of recent purchasers rented a timeshare prior to buying.
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5 . Are there consumer regulations? What are my protections?

Vacation ownership companies must comply with strict standards set forth in state timeshare laws. As a result, purchasers have a five- to seven-day rescission period in most states that allow them time to cancel their 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 or resort outside of the U.S, these protections most likely do not apply.
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6 . Why not just book a hotel for my family vacation?

Owning a timeshare offers families and friends some of the most flexible and enjoyable vacation alternatives. In most cases, timeshares allow you the flexibility to choose different locations, unit sizes, and even different times of the year in which to spend your vacation.

Most timeshare units include spacious floor plans, fully-equipped kitchens, a dining area and more home-like common areas to enjoy a meal or family time together. In a timeshare, you won’t have to sit on the bed eating your pizza out of a box instead you will have quality family time together with the comforts of home but luxury of a resort.

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7 . Can I resell my timeshare?

Yes. 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 you decide to sell it yourself, there are several websites and other ways to offer your timeshare to potential buyers. Just remember, a timeshare is a “use product,” not a real estate investment, so set a realistic resale price.
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8 . If resale companies are unregulated, how do I find a reputable company?

The American Resort Development Association (ARDA) released four advisories to help consumers and timeshare owners navigate through the secondary market, which includes timeshare resellers, internet advertisers and other resale companies, to ensure a safe and positive selling experience. The advisories were developed to help dispel the growing misinformation and confusion in the secondary marketplace by providing specific tips on reviewing timeshare resale companies, their practices, costs and services in the marketplace.

Resales Advisory I: focuses on the types of timeshare resellers with four steps to guide consumers through the process: utilizing existing resources, understanding timeshare resale companies, choosing the best option, and following basic rules.

Resales Advisory II: provides tools to evaluate resale companies with a list of tips.

Resales Advisory III: ARDA learned of a new scheme involving timeshare resales that not only preys upon consumers but falsely sites ARDA as a reference. ARDA does not contract with, become involved with, authorize, or endorse any company’s resales activities.

 

Resales Advisory IV: ARDA advises consumers of the most recent resale precautions.

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9 . What is the difference between buying directly from the developer or from a resale company?

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. There will usually be a difference in price, similar to purchasing a new car versus a pre-owned one. Also, timeshare developers are regulated by the states, which require stringent consumer protections, such as a right of rescission, financial assurance, and many other things. The resale market is lightly regulated, if at all, and therefore does not offer the same consumer protections or benefits as regulations within the primary market. If you decide to sell or purchase a timeshare through a resale company make sure it is a well-established, reputable company (see question 8 above). Also, be especially cautious about upfront fees and exactly what services are or are not included.
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10 . Are timeshares a good investment?

Buying a timeshare is a lifestyle investment in order to enjoy better vacations with family and friends. The “dividend” is a lifetime of memories and vacation experiences together. And, because of its pre-paid nature, timeshare gives people the discipline of taking time from hectic schedules to relax and recharge with high-quality accommodations year after year. Timeshares should not be purchased as a traditional real estate investment.
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