Timeshare

A timeshare (sometimes called vacation ownership) is a property with a divided form of ownership or use rights. These properties are typically resort condominium units, in which multiple parties hold rights to use the property, and each owner of the same accommodation is allotted their period of time. Units may be sold as a partial ownership, lease, or "right to use", in which case the latter holds no claim to ownership of the property. The ownership of timeshare programs is varied, and has been changing over the decades.

Enterprising minds in England decided to go one step further and divide a resort room into 1/50th ownership, have two weeks each year for repairs and upgrades, and charge a maintenance fee to each owner. It took almost a decade for timeshares in Europe to evolve into a smoothly run, successful, business venture.

Used as the basis for attracting mass appeal to purchasing a timeshare, is the idea of owners exchanging their week, either independently or through exchange agencies. The two largest‚often mentioned in media‚are RCI and Interval International (II), which combined, have over 7,000 resorts. They have resort affiliate programs, and members can only exchange with affiliated resorts. It is most common for a resort to be affiliated with only one of the larger exchange agencies, although resorts with dual affiliations are not uncommon. The timeshare resort one purchases determines which of the exchange companies can be used to make exchanges. RCI and II charge a yearly membership fee, and additional fees for when they find an exchange for a requesting member, and bar members from renting weeks for which they already have exchanged.

With deeded contracts the use of the resort is usually divided into week-long increments and are sold as real property via fractional ownership. As with any other piece of real estate, the owner may do whatever is desired: use the week, rent it, give it away, leave it to heirs, or sell the week to another prospective buyer. The owner is also liable for an equal portion of the real estate taxes, which usually are collected with condominium maintenance fees. The owner can potentially deduct some property-related expenses, such as real estate taxes from taxable income.

The most common unit of sale is a fixed week; the resort will have a calendar enumerating the weeks roughly starting with the first calendar week of the year. An owner may own a deed to use a unit for a single specified week; for example, week 51 typically includes Christmas. An individual who owns Week 26 at a resort can use only that week in each year.

DVC's deeded/vacation point structure, which has been used at all of its timeshare resorts, has been adopted by other large timeshare developers including the Hilton Grand Vacations Company, the Marriott Vacation Club, the Hyatt Residence Club and Accor in France.

Timeshare properties tend to be apartment style accommodations ranging in size from studio units (with room for two), to three and four bedroom units. These larger units can usually accommodate large families comfortably. Units normally include fully equipped kitchens with a dining area, dishwasher, televisions, DVD players, etc. It is not uncommon to have washers and dryers in the unit or accessible on the resort property. The kitchen area and amenities will reflect the size of the particular unit in question.

The prospects will then be invited to take a tour of the property. Depending on the resort's available inventory, the tour will include an accommodation that the tour guide or agent feels will best fit the prospect's family's needs. After the tour and subsequent return to the hospitality room for the verbal sales presentation, the prospects are given a brief history of timeshare and how it relates to the vacation industry today. During the presentation they will be handed the resort exchange book from RCI, Interval International, or whatever exchange company is associated with that particular resort property. The prospects will be asked to tell the tour guide the places they would like to visit if they were timeshare owners. The rest of the presentation will be designed around the responses the prospective buyers give to that question.

 

 


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