What is a Timeshare?
The most common timeshare properties are condominium or hotel styles however developers have applied the timeshare concept to other property types or assets such as campgrounds, RV parks, houseboats, and even private jets. For our purposes, we will discuss the most popular timeshare choice, the Condominium:
Timeshares are created by resort developers who divide the units into equal time intervals. The divided units are marketed and sold to buyers who purchase a specific time of year to occupy the resort. The buyer owns an equal share of the condominium unit and common ground which includes the resort accommodations. The purpose of timesharing is to remove the financial burden of owning a vacation property year round. The resort takes care of all the property management. The greatest benefit for buyers is that you own your vacation time and you can use it, rent it, sell it or will it to your heirs. Not all of us can afford a 2nd home and not all of us want to make a large investment and only use it for a short period of time and go to the same place year after year. Owning timeshare provides a solution to this problem. A great feature that you have from owning a timeshare is that you can exchange to many destinations around the world year after year – this, you cannot do with fully owning a vacation home.
What is a Timeshare Interval?
A timeshare interval is the time period that is sold to the buyer. Most timeshares are based on a 1-week interval and are commonly referred to as “Week”. All of our ads contain the week number. The week number is based on the week number of the year 1 through 52.
Are there different types of timeshare ownership?
Yes. There are different types of timeshare properties and different types of ownership. We go into great detail below that will explain the differences between the different types of ownership available.
What is a fixed week?
Owning a fixed week means that your timeshare is available to you on that specific week each year or every other year (depending on annual or biennial ownership). There are 52 weeks in the calendar. We have a convenient timeshare calendar so you can see where your week falls for any given year. You are guaranteed to have that week at your home resort. This is good for people who know they have a vacation on a specific week.
What is a floating week?
A floating week is a type of ownership that allows you to reserve any week between 1 and 52 to use your timeshare. Some floating weeks are restricted by season (also known as blackout dates). For example, a summer floating week could be used during any week that falls within the defined summer months. You will have to reserve the week you want in advance. If you plan on exchanging your floating week, you will need to make a reservation before you deposit your week with the exchange company.
What is a point system?
Owners in this type of system purchase points for use as currency to reserve timeshare resort accommodations of various sizes, different seasons, and for varying lengths of time. Points are offered annually and can be redeemed for daily stays, weekend getaways, full week stays or for other vacation products such as airfare, hotel stays, cruises, and car rentals. Additional points can be purchased but usage varies from resort to resort. The points 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 points. Most systems will allow you to borrow from future years or to carry over unused points to the next year. With the point system, you must make your reservation in advance.
What is Annual or Biennial Ownership?
Timeshare usage can be purchased for yearly usage – Annual. This type of ownership is recommended for the frequent traveler.
Timeshare usage can also be purchased for every-other-year usage – Biennial. This type of ownership is recommended for those that do no vacation every year and would like to have a more economical purchase.
What does Even Year and Odd Year mean?
Even and Odd year usages are biennial ownerships. Ownership with an Even Year Usage can be used during years ending in even numbers while Ownership with an Odd Year Usage can be used during years ending in odd numbers.
What does Membership or Vacation Club mean?
Vacation Club Members purchase the opportunity to use a variety of timeshare accommodations at numerous resort locations in varied unit sizes, rather than purchasing at a specific resort in a specific size unit. The owner would have the use of all accommodations affiliated with the specific Vacation Club. Timeshares Vacations Clubs have an annual maintenance fee and an initial cost to join. As a member of the Vacation Club, you have the right to reserve space at one of the various properties that the club owns. Vacation Club Memberships can be can be Deeded or Right to Use Memberships. Be sure to know what type of membership you are purchasing.
What is a Lock-Off Unit?
A Lock-Off Unit is timeshare configured so you can divide your unit by locking a door to make 2 separate units. You can use this feature for exchange or useful purposes. Some benefits to owning a Lock-Off Unit: You can double your vacation by choosing to only use one unit at a time; you can use one unit for exchange and the other to visit your home resort for an additional week each year; if you travel with others and would like more privacy each unit has an access door to the hallway. You have the choice of using the entire unit or “locking it off” into smaller units.
What is a Deeded Timeshare Property?
With the purchase of a Deeded Timeshare Property, you would receive a deed conveying to you ownership of a given week and unit. The deed is recorded with local governmental agencies such as a County Recorder or Assessor. If your property has a float week or float unit, your deed will show a 1/52 ownership at that resort. With a deeded property the owner has a voting right in decisions regarding maintenance, fees, and operations. You will receive Codes, Covenants, and Restrictions that are binding to all current and subsequent owners. The owner may sell, rent, give away, donate, or bequeath to heirs, just like a typical property.
What is a Right to Use or Leased Timeshare Property?
A Right to Use or Leased property grants the purchaser the right to use the timeshare for a period of time specified in the contract. The usual term is 30 to 99 years. The resort management or entity holds actual ownership of the property. Typically you may sell, rent, give away, donate, or bequeath to heirs, however, the expiration date will remain the same. Upon the expiration of the term, the Right to Use will generally terminate and return to the resort. Many countries limit or prohibit foreign ownership in real estate and this method is effective in those scenarios.
What is a Banked Week?
If you are unable to use your timeshare in a given year, you have the option with some resorts to bank your week. If your resort does not offer this, you can use a Service like RCI or Interval International to bank your week. With a banked week, you are trading your week for the use of a week later.
What is a Maintenance Fee?
Maintenance fees are established and collected by the homeowners association or resort management company to maintain the property and pay for insurance, utilities, and refurbishments. Maintenance fees vary with each resort and depend on the size and type of unit.
What is a Transfer Fee?
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 into.
Do I have to pay Property Taxes?
Yes. Property taxes are may be included with the maintenance fee or billed separately depending on the resort. All property taxes and maintenance fees must be paid prior to trading your unit with the exchange companies.
Can I use the resort at other times in addition to my week usage?
Yes. Most resorts offer additional time to owners at a reduced rate; this benefit is most commonly known as bonus time.
What should I consider when buying a timeshare?
Follow these simple steps when choosing a timeshare; ask yourself if it’s located in an area you enjoy and is available at the time of year you like to visit. Other factors to consider are your ownership rights, maintenance fees and how the timeshare is managed. Prices vary widely but are mainly determined by location, the size of the unit and the season (or week) you are purchasing.
After seeing your listings, there are a number of resorts we have an interest in. How do we proceed with the purchase of one or more of these resorts?
Simply fill out the short form or call us at 1-855-443-6080. We will forward your contact information and offer to the owner(s) and the owner(s) will then be in touch with you to finalize the transaction.
What is involved in Buying a Timeshare?
First, choose from one of our ads listed in our available inventory. When you agree on a price with the seller, our licensed timeshare specialist assists you throughout the rest of the process. You will need to secure financing, make arrangements with the closing or title company. The closing company will hold the deposit in an escrow account. The closing company will handle paying off any loans the seller might have on the timeshare and file all the paperwork with the timeshare resort. Typically it takes from 4-6 weeks to complete the entire transaction depending on the resort. There are some recording, transfer, and closing fees that may apply and are split between buyer and seller. The closing company will explain all the documents and fees associated with the transaction. Once everything is completed you can begin to enjoy your new timeshare.
How do I get financing for a timeshare?
We recommend using the services of TimeshareLending.net or TAMMAC Financial Corp. These companies specialize in timeshare financing. You may also go through a traditional lender, or utilize a home equity loan. Expect a minimum down payment of 10%, and up-front charges for taxes, title insurance, and annual maintenance. Mortgage interest is usually tax-deductible.
When will I receive my deed or copy of recorded ownership?
Typically it takes 8 – 10 weeks to receive your deed. You will receive your deed after your contract has been paid in full and the transfer of ownership has been completed with all official recording agencies. The time it takes to receive your deed varies by resort. International buyers can expect that it may take much longer to receive their deed or other proof of recorded ownership. The deed is not necessary for you to start using your timeshare or any of the exchange benefits. The deed or a copy of recorded ownership documents that shows proof of ownership and should be filed in a safe place. You will need this document if you ever wish to sell or transfer your ownership in the future.
Will I receive all benefits that the resorts are offering if I purchase from an existing owner?
YES. All benefits transfer to you when you purchase a resale timeshare. The property’s Homeowners Association benefits and rules apply to all owners regardless of how the property was acquired. The best part about selecting a timeshare property from Resort Vacations International is that you avoid paying retail developer prices and save thousands of dollars.
What if I want to see the resort before I purchase?
On the ad, we have the resort photos and a detailed description of the property. This is to assist you in your decision making. We also offer timeshare rentals here at Resort Vacations International. Many owners who have their unit for sale may also have it available for rent. You may contact us by clicking on Make an Offer and fill out the short form or call us at 1-855-443-6080. We will pass on your information and offer to the owner and the owner will contact you directly to complete the rental transaction. We encourage our customers to be as familiar with the programs they are purchasing as possible. However, our inventory changes on a daily basis and we can not guarantee that the property you are interested in will still be available for sale. If you choose this route, be sure to visit our Toolbox to assist you with your rental.