Common Timeshare Contract Problems
Timeshare Contracts are some of the most complex documents in the real estate business. Even people with years of real estate experience can get tripped up by these contracts. So, it is no wonder that many timeshare owners find themselves confused by these tricky documents.
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
We work with timeshare owners every day, to help them understand their contracts. Here are some of the most common timeshare contract problems that our clients have encountered:
- Ownership rights— A deeded timeshare is technically a piece of real estate. You would think that this would entitle you to the same rights as you would a house. However, with a timeshare contract you only own a small portion of the resort property and your ownership rights are 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—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. Many owners are confused or misled by exchange their rights when they buy a timeshare.
- Timeshare buy-back—Some owners think that when you are finished with your timeshare you can just return it to the resort. There are very, very few resorts that will accept a timeshare back. Even if they do, they make only accept a timeshare back as a way to upgrade you to a new contract.
- Length of contract—Some timeshare contracts have an expiration date (such as right-to-use timeshares) but most timeshare have no expiration date. They are deeded, perpetual contracts that you will own for the rest of your life. Most timeshares will even be passed down in your estate to your heirs. Make sure you are aware of the length of your contract to prevent any confusion later on.
- Exit solutions—If you can no longer keep your timeshare, selling or giving away your timeshare are your only options to get out. However, “giving away your timeshare can include timeshare donation and transfer services. Choosing a solution for your timeshare will depend on your ownership details. Not all timeshares are eligible for timeshare donation and certain resorts have different restrictions on this. We will help you to understand your options and select the best solution.
Timeshares can be great ways for families to spend time together each year, 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—it can save yourself a lot of trouble down the road.
Don’t wait. Call today for a solution.
7 days a week, 7am – 11pm EST