Definition

• A timeshare is partial ownership in a condominium or hotel unit located on a vacation property, allowing the multiple owners access to the same access and privileges for a specified period of time. This period of time is agreed upon in the purchase contract, and it can include one or more weeks of use per year. Multiple owners have access to the same hotel room or condominium at different times throughout the year. Purchasing a timeshare of a resort allows the owners to visit their favorite vacation spot at a time of their choosing and know what their accommodations and costs will be in advance. Additionally, timeshares operate like any other property in that they can be traded, sold or handed down as an inheritance.
  
  

Benefits

• A timeshare resort typically offers more than standard hotel rooms. Most are full condominium units with multiple bedrooms and kitchens. The unites offer access to many amenities such as swimming pools and golf courses. Most timeshare resort systems work by giving each owner of the timeshare a certain number of days or weeks per year to claim and use the property. In this case, owners claim their weeks on a first-come, first-served basis. However, if the owner does not wish to use the weeks, they can be rented or given as a gift. Timeshare resort companies with multiple locations offer exchanges, allowing the owner to spend a week at one of their other properties in a different vacation destination.
  
  

Considerations

• Although owing a timeshare can be an economical choice for frequent travelers or those who like to try out new destinations, you should carefully consider whether you will use the timeshare enough to justify its cost. A timeshare should not be considered as an investment in the sense that residential property is. Timeshares are difficult to sell on the secondary market, and they do not typically offer a good return on investment. It is for this reason that consumer expert Clarke Howard strongly recommends that you purchase a timeshare from a former owner (or an agent) rather than directly through the timeshare company. "Used" timeshares can be bought for approximately thirty cents on the dollar, based on the original purchase price.
  
  

Warning

• The timeshare sales market is not without its controversies. Critics of the timeshare concept state that prices for timeshare resorts in vacation destinations are exorbitant, and they are allegedly far beyond the cost of similar accommodations rented by other means. Timeshare resorts often get potential buyers to come and visit by offering free or very low cost vacations, with the condition that the vacationers attend one or more sales presentations while at the resort. Many consumers have reported feeling coerced or pressured at these sales events.
  
  

Types

• There are numerous types of timeshare agreements. The most commonly offered timeshares are the fixed unit/fixed week, floating time, right -to-use, and vacation club/points programs.
  
  Fixed week programs give owners a deed stating your right to use the timeshare unit during a certain week each year, while floating time agreements give owners the option of making reservations any time of year on a first-come, first served bases. With a fixed week program, you are assigned a specific week (or weeks) of the year for enjoying the timeshare. They are numbered from 1 to 52. For example, if you purchase week one, you know that you are able to use the resort the first week of the year.
  
  Floating programs allow the owners to reserve their week(s) up to a year in advance on a first-come, first-served basis. Right-to-use timeshare agreements work like a lease, giving you the right to use the property as specified in a contract for a length of time. When the lease/agreement period ends, you no longer have any rights to the property.
  
  Last, the most flexible type of timeshare agreement is a vacation club or points-based program. In these agreements, the owners are able to choose from multiple vacation destinations, using an allotted number of points per year.