What are timeshares and are they worth it?
Types of timeshare ownership
Before signing up for a timeshare agreement, it is essential that you know that there are two types: timeshares with shared deed and timeshares rented. Depending on whether you or a property management company hold the deed, you may face certain limitations in your timeshare contract.
When you get timeshare ownership, you own a portion or percentage of the timeshare ownership, which means there is no contractual expiration date. This means that if the developer goes bankrupt, you will still own your part of the station.
In addition, you will have the right to vote on important matters such as maintenance costs. However, timeshare owners are responsible for maintaining the shared space. This may include housekeeping, landscaping, repairs and improvements to the property.
Another advantage of rated timeshares is that they are transferable, so you can sell them, include them in your will or give them away.
Shared rented timeshare
A leased timeshare, also known as a right-to-use timeshare, indicates that you do not own the property, but have the right to physically remain in the property for a period of time.
Unlike notarized timeshare, the person who sells you the right-of-use contract owns the property. Leased timeshare contracts define how long you can use the timeshare – these are usually long-term contracts. Leased timeshare agreements can expire over 20 years.
Since you don’t own a property in this property type, you won’t have a say in the annual timeshare fees and if the owner decides to raise them. The rules of the property and the maintenance and operations are all factors entirely at the developer’s expense. Also, if the developer ever goes bankrupt, you would lose your ability to stay in the property.