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 ?
As a leading timeshare attorney, Susan Budowski assists those victimized by timeshare scams in canceling or getting out of the timeshare contract.
Example 1: Mel and Lana King bought a timeshare many years ago for $15,000.
So they've paid a company called International Timeshare Refund Action to take the points off their hands.
But, rather than finding a buyer, some rogue companies are ripping off the owners by charging them for bogus insurance policies and other fees to sell on the timeshare - often for more than the investment is even worth.
We also want new rules which mean people do not have to pay deposits of advanced payments for a timeshare, which means they would not lose money if they change their minds.
There are other scattered timeshare units throughout the city, but no comprehensive list of those units is publicly available).
Like any other investments, venturing into timeshare vacation requires a lot of thinking and assessment.
In addition to the owner-advertising option Sell My Timeshare NOW has always offered consumers, we are expanding our timeshare brokerage service capabilities and will begin presenting those services as an additional option when sellers contact us.
The OFT is asking consumers who have lost money through timeshare resale scams to contact it to help the Spanish authorities take action.
David Sayer, head of governance for Consumer Direct North East and Trading Standards Manager for Redcar and Cleveland Council, said: "If you are considering buying a timeshare, take your time to do some research, and if you attend a sales presentation, don't be pressured into agreeing to a deal on the spot.
Ms Evans has been calling for stricter regulation and has been contacted by constituents targeted by unscrupulous timeshare salespeople.
Emaar Hospitality Group also plans to expand its timeshare business to other countries in the region too, where the company is currently developing master-planned communities with hospitality & leisure components.