Timeshare

Timesharing is a legal mechanism through which a number of different people can own the rights to occupy a piece of property. Each owner has the right to occupy the property at a specific time of year. Timeshares are usually associated with vacation or recreation locations. The properties involved are most commonly condominiums or vacation homes.

Typical Timeshares

Some of the most popular locations for timeshares are in Las Vegas, Hawaii, Florida, and Colorado. Timeshare listings show that this type of property is available in almost all areas of the United States, as well as around the world. Mexico is another popular timeshare location for U.S. residents.

A management company usually manages timeshare properties. Owners of timeshares often exchange them so that they can use someone else's timeshare at a different vacation location. Timeshares can also be rented, but the management company may require that any renting must be done through the company.

Costs of timeshares can vary widely based on three main factors:

• Location of the property (typically has the largest impact on the cost)


• Condition of the property


• The time of year covered by the timeshare. At most resort areas, the year is divided into a high demand season, intermediate season, and low demand season.

Maintenance costs and property taxes for the property are split proportionally among the timeshare owners.

The First Timeshares

The idea for timeshares originated in the 1960s, either at a French of Swiss ski resort. At that time, there was a French ski resort developer who thought it would be a good idea to widely market the idea of owning instead of renting at a resort. The basic timeshare concept was also used by a Swiss company beginning in 1963. The first timeshares sold in the United States were in Hawaii in 1969.

Types of Ownership

A timeshare usually gives the owner one or two weeks a year during which the owner is entitled to exclusive use of the property. The weeks that are purchased can be:

Fixed – the owner possesses occupancy rights at the same time of year, every year; some resorts sell weeks with major holidays as fixed weeks

Floating – the purchased weeks are selected from a specified range of weeks; the owner must request the desired weeks, and may have to compete with other timeshare owners for the dates

Rotating – gives all owners access to the prime weeks by rotating each owner's week according to a fixed yearly schedule.

Timeshare Exchanges

There are several agencies that facilitate the exchange of timeshare properties. Most timeshare resorts are affiliated with one major agency, and require that exchanges be arranged through that agency. Although less common, it may also be possible for the owner to directly arrange an exchange.

Timeshare Tips

Potential timeshare buyers should beware of hard sell presentations. Timeshares should not be purchased with the idea of generating a profit when they are resold. They can make a good purchase if the buyer has the desire to return to the same resort, possibly at the same time of year, every year. If the buyer anticipates making exchanges or rentals, it is important to ensure that the timeshare property will attract other people. It is a good idea to obtain legal advice before signing any contracts.

By Charles Hair