Vacation Timeshares

Although buying a timeshare in a resort location can sometimes be an affordable way to vacation, it's easy to get ripped off by developers hoping to make a fast buck. Taking the time to understand the legal and practical details can help make your experience more enjoyable.

You can buy timeshares for the use of an entire facility or just a condo in an exotic location. Timeshares can be for a specific length of time during the year, and sometimes for only a certain number of years.

With deed and title purchases- also known as "interval ownership"- you buy a legal deed good for a certain number of years. You own the property during that span of time, regardless of what happens to the resort property management.

With "right of use" timeshares, you buy the right to use the property, but don't get a legal deed to the property. Your right to use the property is only as good as the integrity and financial health of the resort management.

You can buy a timeshare for the same time period every year (called a "fixed timeshare") or for the same length of time but at different times each year (called a "floating timeshare").

Do Your Homework

Timeshare developers are notorious for high-pressure selling techniques, offering prizes and discounts just for showing up to hear their spiel. Before you sign any legal documents, it's important to get all the facts, including:

• Who actually owns the timeshare (the developer or an individual seller)
• Whether there is clear title to the property, without any liens or other debts
• Whether you can transfer the ownership to someone else without restriction
• Whether you'll receive a deed as proof of ownership of the property
• If the timeshare is for "right of use" only, how many years are left in the timeshare period
• Who owns the facility after all the timeshares have been sold
• Whether timeshare owners have any voice in management of the facilities
• Maintenance fees and other possible owner expenses such as property taxes
• Restrictions on how you can use the timeshare (usually found in a legal document called "CCRs"- short for "Codes, Covenants and Restrictions"

You should visit the timeshare property you're thinking of purchasing, as some developers misrepresent what's available, even selling property that has yet to be developed.

Many states where timeshares are sold have "cooling off period" laws which give you a certain number of days to change your mind and cancel a timeshare contract. You can find out about the cooling off period in your state through your state Attorney General's Office.

Timeshare Exchanges

One of the benefits of owning a timeshare is the ability to exchange it for a timeshare in another location, through an exchange company. The value of your timeshare on the exchange market -called exchange "points"- will depend on the time of year and the location and the size and quality of your timeshare. To successfully exchange your timeshare:

• Read the exchange company contract carefully before signing it, to make sure you understand exactly how properties are rated and what you are obligated to do
• Find out about membership fees and other expenses before you commit
• Submit information on your timeshare and the location you'd like to visit up to one year ahead
• Don't try to trade your timeshare in an undesirable location or season for a timeshare in a very popular location at the peak of the season in that area

Investigating thoroughly before you buy can make it more likely you'll be able to relax on your vacation instead of fretting over a bad deal.