timeshare

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Timeshare

A form of shared property ownership, commonly in vacation or recreation condominium property, in which rights vest in several owners to use property for a specified period each year.

Timeshare ownership of vacation or recreation condominium property is a popular choice for persons who wish to secure a long-term commitment to a particular location. Timesharing is common in Hawaii, Florida, Arizona, Colorado, and Mexico, as well as in certain other popular vacation spots in the United States. When a person signs a contract to purchase a "timeshare," she is agreeing to pay the owner of the property a sum of money for the exclusive right to use or occupy the property for a specified time during the year. One or two weeks is the typical period that may be purchased. Usually, the timeshare agreement is made for improved property, such as a vacation home or a particular unit in a condominium complex.

The form of a timeshare agreement varies. Usually, the person has the right of exclusive use of the unit during the same time each year or other specified period. Each timeshare unit is considered an estate or interest in real property, separate and distinct from all other timeshare estates in the same unit or any other unit. Therefore, estates may be separately conveyed and encumbered.

The cost of purchasing a timeshare depends on the time of year selected; premium prices are charged for the most popular times of the year. The annual maintenance fee for the condominium unit and the annual property taxes are divided proportionally among the timeshare owners. A person who does not plan to use the property during the specified period may rent the timeshare to a third party, but the company managing the property may require that it broker such transactions and receive a fee for the rentals.

Timeshare agreements are affected by various federal and state statutes. States generally require developers of timeshares to file detailed statements that demonstrate compliance with all applicable statutory requirements. For example, states typically require the developer to fully disclose how the project is to be financed and to give examples of all contracts, deeds, fact sheets, and other instruments that will be used in marketing, financing, and conveying timeshare interests. Some states also require information from the developer concerning the management of the project, including a copy of the management agreement, disclosure of any relationship between the developer and the management company, and a statement as to whether the management agent will be bonded or insured.

Cross-references

Condominiums and Cooperatives.

timeshare

consecutive sharing of accommodation with concurrent ownership. An agreement by which a person pays a capital sum to the promoter of a timeshare resort and in consequence acquires a right to use accommodation and facilities in that resort for a defined period each year for a defined number of years. They can be bought and sold and inherited. Some may be swapped on informal exchanges, allowing the ‘investment’ to be used as a right to obtain a different holiday. This fine business idea for a ‘product’ for the leisure industry has been successful. There have been many difficulties because the concept is not one recognized in the law in its own right - it is an amalgam of legal rights and duties. There have been many complaints from purchasers throughout Europe. The European Union acted by promulgating a Directive on the topic which affects any contract or group of contracts concluded for at least three years under which, directly or indirectly, for payment or a certain price, a real property right or other right relating to the use of the property for a specified period of the year, which may not be less than one week, is established or is the subject of a transfer or an undertaking to transfer.
References in periodicals archive ?
A subsidiary of Wyndham Worldwide, Wyndham Vacation Ownership is the world's largest vacation ownership business, as measured by the number of vacation ownership resorts, individual vacation ownership units and owners of vacation ownership interests.
Developed by Zurich based owners Thorsten Wieting & Nicole Wieting-Kalin, weholi is an easy-to-use online marketplace for renting, exchanging and selling all forms of vacation ownership, such as freehold vacation properties, fractional, timeshare, points, serviced apartments and more.
Developed countries like the US and Europe represent the major markets for vacation ownership.
Wyndham Worldwide Corporation (NYSE:WYN), a US-based holding company for Wyndham Hotels & Resorts, Group RCI and other lodging brands, has announced that Wyndham Vacation Ownership has entered into an exclusive sales and marketing agreement with Smugglers' Notch Management Company Ltd.
He confirmed that industry leaders from Starwood, Hyatt and Marriott will all be taking centre stage at the upcoming conference and are ready to share their views of the vacation ownership market and to explain how this lodging option can positively impact profits.
It reflects the excellent quality of our vacation ownership receivables, and the strength of our hospitality management and vacation ownership businesses," said David F.
Hospitality sector in itself comprises of various sub segments like lodging, vacation exchange and rentals, and vacation ownership.
We're pleased to be recognized for the third year in a row among the best of the best in marketing communications," said Adam Schwartz, chief brand and communications officer at Wyndham Vacation Ownership.
For example, increasing number of elderly, more working adults and women, and early retirement, among such other factors are increasing the demand for vacation ownership products.
As a result of global economic downturn, the United States vacation ownership industry, which represents the largest market, has seen a significant decline during 2009.
Diversity and inclusion are at the core of our Wyndham Worldwide culture, and it is an honor to receive this award from MBA Orlando," said Sarah King, executive vice president of human resources at Wyndham Vacation Ownership (WVO).
The US vacation ownership industry is growing inspite of the ongoing economic recession.