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
