What is a Timeshare? How Do They Work?
People who like to vacation regularly in attractive locations will often buy into a timeshare arrangement for housing while in the area. This eliminates the need for booking a motel or renting an apartment for the time they will be there. Timeshares can be risky for the individual who does not understand how they operate, and having good information from a legal group before making a final decision is always advisable. While the concept could sound good at first evaluation, there are surely some pitfalls that are associated with purchasing an occupation plan. This is especially true when unforeseen issues could occur that could interrupt a scheduled vacation. Everything could go as planned, and there could also be some problems along the way. Here is a description of the different types of occupancy that can be purchased.
Fixed Week Plan
One of the simplest and most cost-effective timeshares is fixed week occupation. This is an excellent option for those who know exactly when they will be on vacation and can reserve the timeshare for the entire time period. This is great for those who know exactly what they want out of a residential unit while visiting, and often the proximity is perfect as well when the right timeshare can be located.
A floating plan works well for the individual who knows they will have time to use the unit but do not know the exact time frame. This arrangement means the purchaser must coordinate the property with the ownership group to ensure it is available when it is needed. Using the property only when it is available is written into the leasing contract, and all of the final decisions on occupancy for a given time are made by the management group.
The right-to-use option typically applies to a property that is vacant much of the year that can be occupied at the discretion of the purchaser. This works well for many individuals, and typically there is little competition for the property. However, the location may not always be optimum for intended activities while using the property.
Many timeshares are available based on a points system that management groups incorporate into their marketing program. These can be either good or bad depending on the particular timeshare, and those who qualify typically have very little choice on location. There could also be hidden or unexpected maintenance costs that are part of many plans, not to mention a ticket to extended boredom in the wrong location.
The biggest drawback of a timeshare plan is that they are secured by a binding contract that could result in a required payment with little to no qualify usage of the property. Legal groups who represent timeshare purchasers understand this potential problem. The Resort Legal Team will always advise clients on potential legal issues associated with a timeshare purchase, including tax applications in certain purchase agreements, and help them locate the right timeshare for their personal vacation plans.