A timeshare contract is unique among consumer contracts, in that it typically creates a non-cancellable lifetime obligation. In exchange for a vacation ownership interest in a resort condominium, timeshare buyers pay tens of thousands of dollars in upfront or finance charges, and are responsible for annual maintenance fees and property taxes. These costs can rise significantly over the life of a timeshare, and even if the contract has a rescission period, getting out of a timeshare can be difficult.
In the world of timeshare sales, unscrupulous companies will often offer false information, misleading promotions and empty promises. This may include offering relisting guarantees that are impossible to meet, or lying about a product’s resale value. These tactics are a common part of the sales process, but if you know what to look for, it is possible to spot these red flags and protect your rights.
It’s important to understand the different types of timeshare contracts and ownership options. A deeded ownership agreement gives you the same rights as a traditional property owner, including the ability to sell or transfer your ownership interest. A shared leased ownership agreement, on the other hand, does not give you any ownership rights, but allows you to use a specific week (or weeks) of property each year for a set number of years.
Other timeshare contracts allow you to trade or rent your timeshare to others. This can be a great way to enjoy a new destination or experience without having to spend the full purchase price. However, this type of arrangement can have significant hidden costs, especially if you are dealing with a large network of properties.
When buying a timeshare, it’s important to research the company and specific resort before signing. Educating yourself about the different types of timeshares and their associated costs will help you make an informed decision that fits your needs and budget.
One of the most significant hidden costs associated with timeshares is the cost of maintaining the property. These costs can include cleaning, repairs, landscaping, and the ongoing management of the property. Some timeshare companies will also charge additional fees to cover the expenses of special events, such as concerts or a major holiday.
If you are considering a timeshare, it is important to read the entire contract carefully before signing. There are many clauses and terms that you might not fully understand, and these can have a significant impact on your legal rights and ability to get out of the contract. Some of these clauses are buried deep within the contract, and might be labeled as a choice of law or forum selection clause. This article will discuss these and other hidden costs, so you can better understand the timeshare agreement before you sign.