We know: How Timeshares Work

1. What is a timeshare?

A timeshare is a kind of property ownership that allows you to acquire a percentage of interest in a vacation home or resort for a specific period of time.

2. How do timeshares work?

There are basically 2 different kinds of time shares:

  1. You buy deeded ownership in a piece of real estate that grants you shared interest in a unit that you use for a defined time each year
  2. You buy a lease, license or membership that lets you use various properties like hotel, resort or condo units for a specific amount of time over a set number of years.

3. How do you schedule times to use a timeshare?

Again, there are usually 2 options:

  1. You commit to a fixed time each year when you use the timeshare.
  2. You choose a floating timeshare, where your schedule changes. Each year you must book the period of time you want.

4. Whatís a timeshare exchange?

Many timeshares allow you to expand the number of places you can stay by paying a fee to join an exchange. You essentially deposit some or all of the vacation time you own into an exchange system, and then withdraw a comparable amount of time at another accommodation worldwide.

5. What should I watch for when shopping for a timeshare?

If youíre hoping your timeshare will appreciate in value, that is generally not the case. So donít be lured into thinking itís an investment with that kind of return.

Also, add up all of the costs associated with the purchase, so that you get a true picture of the final tab. Include the mortgage, closing costs and fees, annual maintenance fees, taxes, broker commissions and any finance charges.

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