Guidelines for Buying Timeshare

If you've ever dreamed of owning a vacation getaway, consider a timeshare. Timeshares offer a smart and affordable way to purchase property in your favorite vacation spot. By buying into a timeshare, you can lock in the price of your annual vacation and, with some, you might even build equity.
1. What is Timeshares? When you buy a timeshare property, you buy a certain amount of time to use the property each year, splitting the cost of a vacation home with many other people. Timeshare properties are often a part of a larger community with amenities such as swimming pools, recreation rooms, or gyms. They can also be stand-alone homes or condos.
2. Types of Timeshares There are two main kinds of timeshares: fee simple and right-to-use. With a fee simple timeshare you purchase a piece of property with other people, own it, and build equity over time. Ask the seller if you can visit the timeshare before you purchase. If you're thinking of spending a week there every year, you better make sure you like it.
Right-to-use timeshares are generally less expensive. You purchase the right to use the property, but a developer owns it. When your contract is up you need to renegotiate terms with the owner. There are fixed and floating right-to-use properties.
*** Fixed Timeshares:With a fixed property timeshare, you will use the same property each time. Make sure that the timeshare is available when you regularly go on vacation each year, especially if you don't have much flexibility in choosing your vacation time.
*** Floating Timeshares: Floating timeshares offer great flexibility. You're entitled to a certain number of days a year, but those days can change from year to year to fit your schedule. You're guaranteed a similar timeshare property every time you vacation, although you'll often have different accommodations.
3. Search Timeshare location Research the location of the timeshares that interest you most. Do you want to visit the area year after year? Also look at the prices of comparable accommodations in the area to find out how much you'll save on your vacation over time.
4. Must Know About Your Timeshare Rights Timeshare programs are almost always governed by a set of legal documents known as the codes, covenants, and restrictions (CCRs). CCRs establish the rights of property owners and govern how the timeshare will be managed. Before you buy, read the CCRs carefully and make sure you understand them, including the requirements relating to fees, charges, and restrictions on usage.
5. Know your Timeshare payment requirements Payment for timeshares usually consists of an up-front purchase cost and an annual fee to cover property maintenance.
6. Understand Timeshare maintenance fees Annual maintenance fees, assessed by the management company, can cover expenses such as cleaning the pool and paying taxes, utilities, and building up financial reserves. They can also cover housekeeping expenses and ensure timeshare units are stocked with basic necessities such as dishes, sheets, and toilet paper. Fees can vary. Make sure you understand what the fees cover.
7. Get through Timeshare paperwork The timeshare buying process depends on the type of ownership and local regulations. For deeded timeshares, title for the property will have to be transferred to your name and recorded with the appropriate government agency. Many owners sell their timeshares through a broker or management company that can complete the paperwork for you.
You can also use a special timeshare closing service to handle all the logistics of closing the sale between you and the seller of the unit you are purchasing. Ask the seller if he or she is using this service.