Are you considering buying a timeshare, or perhaps you already have and are unsure of exactly what your timeshare obligations are? You certainly aren’t alone. Many people buy into these properties without fully understanding what they are, how they work, and what the limitations on the timeshare are. These are all lined out in the timeshare contract, but unfortunately these binding documents can be written using tricky language and a lot of fine print. So whether you already have a timeshare or are simply thinking about getting one, there are some things you need to understand about timeshare contracts and what they mean for you.
What You Need to Know
First of all, in order to understand what you are getting into with these contracts, you need to understand what timeshares are and how they work. They are exactly what their name implies – you share time in the property with other owners throughout the year. The length of time you are allotted to use the timeshare depends on the terms of your contract, which we will cover in a moment, but is usually a 1/52 share, which means you get to use the property for one week a year. This can go up or down depending on the type of timeshare you have and how much you paid for it.
It is also important to understand that timeshares are considered legal pieces of real estate. They may feel like a hotel since you generally are only there for a short time, but in most cases this little piece of property is as legal as a house. This means that, depending on what is outlined in your timeshare contract, if you stop making payments on the property (including mortgage, interest, or annual fees) you may be subject to a potentially devastating foreclosure if you do not successfully get rid of your property (the ability of which is also usually outlined in your contract).
What You Can Do
As you can see, your timeshare contract controls a lot of how you can use your timeshare. There are a variety of types of timeshare contracts, and each has its own rules. This is why it is particularly important to read and fully understand your contract before you sign in. In some cases you may be committing to a few years at this property, while in other cases you are making a lifetime commitment. READ THE FINE PRINT and don’t be afraid to ask for legal advice before you sign on the dotted line.
A lot of issues people have with their timeshare properties could be easily avoided if the owner had been more aware of the terms of their contract instead of just listening to a smooth talking salesman. A timeshare, in many cases, is just as legally complicated as owning a home, so take your time to make sure you full understand you contract, the type of timeshare you are purchasing, and when and how you can use the property before you agree to anything.