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 is 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 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 black out 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 usage 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 on 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.

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EXCHANGE FAQ’S

 

Who is RCI?

Resort Condominiums International, or RCI, is the oldest and largest exchange company in the world.  RCI allows timeshare owners to trade their timeshare weeks with other timeshare owners around the world.  RCI has been in business for almost 30 years and currently works with over 3000 resorts in 85 countries.  RCI can be reached at 1-800-338-7777 (Weeks) or 1-888-968-7476 (Points).

 

Who is II?

Interval International, or II, is the second largest and second oldest exchange company behind RCI.  With over 1700 resorts in 35 countries around the world, II operates much like RCI, offering quality exchange services for its clients worldwide.  II can be reached at 1-800-843-8843.

 

What are the benefits of each company?

The benefits of RCI and II are essentially the same. Both companies give you an annual listing of all resorts. They both have a quarterly or bimonthly update magazine. RCI and II both offer a “members only” travel agency (airfares and car rentals are not included with your timeshare costs). Both offer last minute getaways at reasonable prices without having to give up your deposited week and both offer excellent customer service through their toll-free numbers.

 

Is there any difference between RCI and II?

Yes.  Although they are very similar, each is unique in the different resorts they exchange.

 

Is there a membership fee for RCI and II?

Yes. There are annual membership fees for Interval International and RCI.  They also offer three and five year subscriptions which may be purchased at a discount to the annual rate.  For the latest fees, we recommend to contact each exchange company directly.  This type of membership allows additional flexibility in timeshare ownership.

 

How do I make an exchange?

Making an exchange is easy.  All you need to do is pick up your phone, call your exchange company, and ask one of their vacation consultants to walk you through the exchange process.  The process with each company is very user-friendly.

The “Exchange” concept is best described as “like for like”.   As you make your exchange request, expect to exchange for something similar as to what you own.  You are likely to get the same number of bedrooms, same season, and similar amenities as what your home resort offers.

Your deposited timeshare week does not have to be taken before you are confirmed to go elsewhere.   You also don’t have to travel the same fixed week that you have deposited.

 

What is a Five-Star Resort?

A Five-Star Resort rating is given to a top timeshare resort.

 

What is a Gold Crown Resort?

A Gold Crown Resort rating is given to a top resort in the RCI network

 

What is red, white-yellow, and blue-green time?

This is a color system used for rating the desirability of a timeshare week.  Red is considered peak season followed by white and yellow.   Blue and green are considered off-season.  The demand of a resort depends on its location. A ski resort is more desirable in the winter months compared to beach resorts being popular in the summer months. Your timeshare will have more value in a high demand time of year. This affects the price of the week and the trading power you will receive if trying to exchange your week.  Resort Condominiums International (RCI) and Interval International (II) have both divided the seasons into 3 colors.  For RCI, Red = High Demand, White = Intermediate Demand, Blue = Low Demand.  For II, Red = High Demand, Yellow = Intermediate Demand, Green = Low Demand.

 

May I rent a week I have received in exchange?

No.  This is expressly forbidden.  If you do this and the exchange company finds out you will be banned from future exchanges for life.

 

May I make an exchange and let someone else use it?

Yes.  All you need to do is give the exchange company the name of the people who will be using the resort so they can make a guest certificate for them.  There are  costs for a guest certificate.  We recommend that you contact your exchange company to get the latest costs.

 

When should I deposit my week?

We advise you to deposit your week as early as possible.  You may deposit as early as one to two years or as late as fourteen days prior to the reservation date.

 

Do I have to make a request at the same time I make a deposit?

No.  If you wish, you may make a request when you make your deposit.  In both exchange companies, you have two years after you deposit your time to request an exchange.

 

When should I request my exchange?

RCI allows you to request your exchange 2 days to two years before you want to travel as long as you have a week on deposit with the exchange company.

 

When do I pay the exchange fee?

All fees are payable when you make an exchange request.  If you are requesting a guest certificate or adding other options they are due at this time.

 

How long will it take for my exchange to be confirmed?

Most exchanges are confirmed within twenty-four hours.  If your chosen destination is not immediately available, a computerized search will continue to look for exchanges.  All incoming deposits will be checked up to fourteen days before your planned departure date or until confirmed.

 

What is internal exchanging?

An internal exchange allows you to exchange the week you own for a different week at your home resort.  If you wish to travel at different week than the week you own, the resort may do this for you based upon available of inventory. The resort may or may not charge a fee for this service.  RCI also offers this service from their inventory of your home resort for a fee.  Priority is given to any owner that wants to exchange at their home resort.

 

How many people can I take with me?

You can take as many as the maximum number your unit sleeps. Resorts typically will not accept more than a unit’s capacity to stay in one unit.

 

Will the resort provide daily maid service?

Some resorts will have daily service, some bi-weekly, and some not at all during your stay. If this is of major concern to you, you should contact the resort you wish to visit to find out exactly what their policies are.

 

Call today, a Licensed Timeshare Specialist will be awaiting your call.

 

1-800-850-6891