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
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