Even people with years of real estate experience can get tripped up by timeshare contracts. They are some of the most confusing properties to own, and even as legal pieces of real estate may follow their own rules based on the terms of their timeshare contracts. So it is no wonder that many timeshare owners often find themselves confused with these properties and the tricky contracts that come with them.
But don’t be discouraged – you certainly aren’t alone. More people than ever are looking into the terms of their timeshare contracts and finding themselves confused with what they can and can’t do with their properties.
Common Issues
Some of the most common problems that people report when looking into the terms of their timeshare contracts include:
- Ownership rights – You would think that as real estate you would have the same rights to these properties as you would a house. But since you only own a small portion of the property your ownership rights may be pretty limited. You are only allowed to use the timeshare during your designated time period, and the number of people allowed to stay in the unit may be strictly limited.
- Exchange policies – In order to sell a property a sales representative may tell you anything you want to hear even if it isn’t true. A common misconception is that if you can’t use your timeshare during your designated time that you can exchange for another unit at another time, or even different location. However, many developers and resorts don’t allow this unless you are part of a separate exchange program, which can be purchased in addition to your timeshare.
- Timeshare giveback – Some owners think that if they are ever unable to continue to use their property you can just return it to the resort. In some cases this may be true (for a fee of course) but not all developers offer this option, so it is important to know beforehand whether or not you can return your timeshare.
- Length of contract – Some timeshare contracts have an expiration date (such as right-to-use timeshares) but many are properties you will have for life. Make sure you are aware of the length of your contract to prevent any confusion later on.
- Sales restrictions – For people who can no longer keep their timeshares and can’t return the property to the developer, selling or giving away the timeshare is the only option to get the contract out of your name. However, different resorts have different restrictions on this, so to avoid a lengthy sales process you should know what these are in advance.
Timeshares can be great ways for families to spend time together each year at a favorite location, but they can also be a big headache for owners who are not completely aware of what they are getting into. Make sure you know all the details of your timeshare contract before you make any agreements and you can save yourself a lot of trouble down the road.