Frequently Asked Questions
What is timeshare?
What are maintenance fees?
How much are maintenance fees?
What is the difference in buying
a resale timeshare and buying a new timeshare week?
What is the difference in a fixed
week and a floating week?
What is a point system?
What is a lock-off unit?
What is the difference in a leased
property and a deeded property?
What fees are involved in buying
timeshare?
What is a "season" in
timeshare?
What
is an exchange?
Why are prices so low on the timeshare
resale market?
How do I select a company to buy
a resale timeshare from?
What should I watch out for when
buying a resale timeshare?
What is the process to buy a resale
timeshare?
Can we take our pets when we timeshare?
What sizes of accommodation is
available?
Q. What is timeshare? (
back to
the top)
A. Timesharing or vacation ownership is a term that describes
a method of use and ownership of a particular property. It normally
allows you to use the property for a certain period of time each
year. You pay an initial investment for the timeshare and then
you will pay a maintenance fee each year for the upkeep of the
timeshare.
Q. What are maintenance fees? (back
to the top)
A. Maintenance fees are the cost to operate the resort. This
fee is divided up amongst all of the owners. A portion of the
maintenance fee is to build up reserves to pay for the non-recurring
costs like furniture and appliances. The reserve is also set
up to pay for other capitol costs incurred because of physical
deterioration. When a developer is still selling in a resort
the fees may be subsidized and are subject to go up after the
homeowner association takes over the association. The States
do have some control over how much is kept in reserve for future
spending.
Q. How much are maintenance fees? (back
to the top)
A. Maintenance fees will vary from $200-$1000. They will vary
from resort to resort depending on location, size of unit, amount
of amenities etc. There are occasionally special assessments
charged to handle a specific problem at a resort that has not
been funded.
Q. What is the difference in buying a resale
timeshare and buying a new timeshare week?
(back to the top)
A. When you purchase a timeshare from the developer you will
be paying for all of the marketing that has been done to sell
the timeshare. Buying resale you will generally have a savings
of 50% or more. You must make sure that you are getting the
same benefits when you buy resale. Occasionally there are programs
like the Marriott program where you do not get to take advantage
of their rewards program. At this point you must make ad decision
if the "rewards" part of the program is worth several
thousand dollars to you. You will still be able to use the Marriott
week as a week for use and exchanging in the exchange system
and within the Marriott system.
Q. What is the difference in a fixed week and
a floating week?
(
back to the top)
A. A fixed week is a set week in a set unit that you will occupy
every year. The value of this ownership is that you will know
which unit you will be using and where you will be going. If
you decide not to use the week you can make it a "floating
week" for that year by depositing it into the exchange
system. You will pay an exchange fee to do this.
A floating week is determined differently at every resort and
you need to make sure if the week is floating the entire year
or if there are seasons that it is available. Floating allows
you the option of calling to schedule your week without paying
a fee. It is still based on availability. If you are not using
it at your home resort then you will need to schedule a week
with the resort and deposit the week with the exchange company.
A flex week means that your week is fixed unless you call to
exchange it. This allows you the priority of using a certain
unit but the privilege of exchanging within the resort during
a certain period without paying a fee.
Q. What is a point system? (back
to the top)
A. The point system allows you to break up your vacationing
into 3-4 day vacations. The point system allows you to make
better use of your week by vacationing in off season. RCI global
points are different than the points described above. Every
resort that has points has a different program and you should
check with your resale specialist about the differences in the
point systems.
Q. What is a lock-off unit? (back
to the top)
A. There are two types of lock off units. It is very important
to determine which type you are buying. A lock off unit allows
you unit to be used for two weeks of vacationing. You may use
one week at the resort and exchange one week someplace else.
You may use one week and rent out one week. Generally if you
own a 2 bedroom lock off you will trade for two one bedroom
units. Sometimes the lock off side does not trade through the
exchange company. It is important to check with the exchange
company to make sure you are buying an exchangeable lock off.
Q. What is the difference in a leased property
and a deeded property?
(back to the top)
A. A leased property is a right to use and will expire in a
certain number of years. Those years can be from 20 to 99. It
is important to verify that you can transfer your property if
it is a right to use property. A deeded property means that
you have a deed for the rest of your life and your heirs will
inherit the property.
Q. What fees are involved in buying timeshare?
(
back to the top)
A. The fees include:
initial purchase of the timeshare
closing costs,
sometimes a membership transfer fee
Annual Membership fee with the exchange company
Q. What is a "season" in timeshare?
(
back to the top)
A. Seasons are depicted by the exchange companies in colors.
RCI color codes are red, white and blue pertaining to exchanging
during certain times of the year for each resort
based on how high the demand is for time of year.
Red time = greater demand
White time = average demand
Blue time = lesser demand
For I.I. Interval International, the same concept applies,
but the I.I. colors for the same seasonal demand periods, are
Red, Yellow, and Green.
Q. What is an exchange? (
back to
the top)
A. An exchange is the depositing of your week with an exchange
and then the requesting of a week to use in place of the week
you are depositing. The exchange company does not have to find
someone to use your week before they will give you an exchange.
Once you deposit the week you are done with it. It is very important
to deposit your week early to have more power with your week.
Each exchange company has slightly different rules for exchanging.
There is a fee involved in exchanging your week.
Q. Why are prices so low on the timeshare resale market?
(
back to the top)
A. There are a couple of reasons for this. When your purchase
from the developer you are paying the marketing fees for the
developer. These are generally around 50% of the sales price.
When the unit goes on the resale market the client has hopefully
enjoyed the benefit of the timeshare for a few years so he benefits
by use but not financially. When you buy a resale you will benefit
from the use but you will also benefit financially.
Prices are based on supply and demand. When you have a large
resort with several thousand owners there will generally be
a number of timeshares on the market. That will keep the prices
lower.
Q. How do I select a company to buy a resale timeshare from?
(
back to the top)
A. You should buy from a licensed real estate Broker. There
are a number of problems that can arise purchasing timeshare.
A licensed Broker has a lot to lose if he deals fraudulently
with the public. If you deal with individual sellers or non-licensed
companies you are risking the money that you pay as well as
you will have no place to turn if there is a problem later.
When you purchase from a non-licensed company that is supposedly
working as a for sale by owner company there is no recourse
if you have a problem. There are a lot of horror stories about
the purchase of timeshare. Make sure any money is put into escrow
until closing.
Q. What should I watch out for when buying a resale timeshare?
(
back to the top)
A. You will want to make sure the property is free and clear
of all encumbrances. That includes the maintenance fees and
taxes are paid. Make sure there are no mortgages on the property.
Make sure you are buying from the deeded owner. Make sure you
know what you are buying. A red floating week does not always
mean that you can use any week of the year without paying a
fee.
Q. What is the process to buy a resale timeshare? (
back
to the top)
A. The process of buying a timeshare includes:
Find a reputable Broker. Ask for references.
Decide on what type of timeshare you really need.
Make an offer to the seller. If it is not accepted let the
Broker find you a unit that is acceptable. You are better off
working with one Broker that has access to inventory all over
the country.
Q. Can we take our pets when we timeshare? (
back
to the top)
A. Not usually.
Q. What sizes of accommodation is available? ( back
to the top)
A. You can get as small as a hotel room and as large as a 4
bedroom unit. There are single family homes, houseboats, cruises
Our
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