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Timeshare Owners’ Rights
When you need help with your vacation property disputes, Timeshare Defense Attorneys can help. Learn more with this guide to “Timeshare: Owners’ Rights” here.
Rights of a Timeshare Owner
The American Resort Development Association (ARDA) published the 2022 State of the Vacation Timeshare Industry Report. The industry has bounced back after the Covid-19 pandemic with an increase in sales volume by 64 percent in 2021. Nine million households in the US own timeshares.
A timeshare owner’s rights are contained in the contract signed with the company. As with most contracts, there are rights and obligations, and it is essential to see the rights alongside them.
What Is a Timeshare Owner?
Timeshare ownership rights are different from property rights. Timeshare ownership does not confer property ownership like real estate ownership does. Instead, the timeshare owners have the right to use the property for a certain amount of time every year.
Typically the arrangement is for holiday accommodation in exotic places, and the time is typically one week. In exchange, the timeshare owner pays a lump sum and agrees to pay various annual fees, such as maintenance fees and property taxes.
With timeshare sales soaring, you may be considering diving in. Timeshare Defense Attorneys can help you assess the contract and answer any questions about your contract and the industry in general.
Deeded Timeshare Versus Right to Use Ownership Rights
Deeded Timeshares
Deeded title ownership entitles you to a facility for a determined period every year. You are given a deed to the vacation property and have fractional ownership of the property, which is determined by the number of weeks you have secured. For example, if you bought one week, you have a 1/52 share in the property as there are 52 weeks in a year.
Right to Use Timeshares
A right to use a timeshare does not confer any ownership in the vacation property. Instead, it gives consumers the right to use the property for a specific time every year for a predetermined number of years.
Common Timeshare Owner Rights
All contracts are different, but many timeshare contracts include the following owner rights:
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Contractual rights: All owner rights contained in the contract are actionable if the timeshare company does not comply. You can sue if these rights are not honored. Remember any timeshare obligation you have under the contract and that you can also be sued if you fail to uphold your side of the bargain. If you are experiencing legal difficulties with your timeshare contract, speak to a timeshare attorney in Florida to learn more about your rights.
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The right to cancel: Legislation provides all new timeshare clients cancellation rights outside of the contract to cancel the contract and get a full refund if cancellation notice is given within a period known as the rescission period. The period changes from state to state and ranges from three to fourteen days. Even fourteen days is an exceptionally short period considering that nearly all timeshare contracts compel a lifetime commitment.
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Association rights: Timeshare property resorts are often overseen by Association Bodies. These bodies have meetings. You usually have a right to attend and vote at the meetings.
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Property rights: You have the right to use the property as outlined in the contract.
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Accounting rights: As a timeshare property owner, you have a right to accurate and fair accounting and accounts processes, such as accurate invoices delivered on time.
Common Timeshare Owner Obligations
The converse side of the rights coin is the obligations side. Most timeshare contracts are well packed with obligations on the side of the timeshare customer. These obligations would typically include the following:
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Payment of a lump sum of money either in cash or financed over time after paying a significant deposit.
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Payment of annual maintenance fees. These annual dues average at around $1000 per annum in perpetuity. These fees are typically pegged to an annual escalation of five to ten percent per annum. The payment of maintenance fees outlives the payment of the mortgage and should be carefully considered before committing. Very few timeshare agreements include a ceiling either in time or in the amount of the escalation.
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Obligation to pay property taxes and special assessments for unusual events causing property damage, for example.
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Payment of exchange fees if the client chooses to go to a different location or change the dates.
Fixed Week Timeshare Versus Floating Week Timeshare
Traditional timeshares were for specific dates every year and one week of vacation. This was known as a fixed-week timeshare. Slowly this developed to offer more flexibility for clients making a timeshare purchaser who needed to be able to choose different dates every year for the same period. These are known as floating week timeshare.
How to Find a Timeshare Owner?
There are a few great online resources that will help you find the timeshare owners of various properties.
How to Become a Timeshare Owner?
Timeshare buyers could directly approach a timeshare resort developer to see what they have available. Timeshare companies are sure to have something just right for you. They always do. Alternatively, you could approach existing timeshare owners directly.
Be cautious of scams; however, you can pick up timeshares at a hugely reduced price by finding owners who want out for various reasons. When presented with a contract, be it new or an old one which you intend to take over, you understand the actual cost, which includes property taxes and maintenance fees, before committing.
How to Rent a Timeshare From Owner?
Again, be careful of scams as there are many people keen to take your money only to find they were posing as timeshare owners and promptly vanished after you paid them your deposit. You can ask the resort for rental options, or you could look privately for rental options. Just be careful.
How to Sell a Timeshare by Owner?
Selling is much more complex than buying. The timeshare industry is littered with many exit companies that promise the world and charge the earth and deliver nothing or very little so again, be careful.
Timeshare purchasers are few and far between, but you might find potential buyers prepared to take your timeshare off your hands at a bargain price. Be prepared to lose money. A timeshare attorney in Las Vegas can guide you through the sales process.
What Happens to a Timeshare When the Owner Dies?
This would depend on the contract. However, it is often the case that the timeshare will devolve to the deceased’s estate as an asset to be distributed according to the applicable law. Sometimes the beneficiaries do not want the timeshare as they do not have the money to pay for the annual fees. They can generally avoid the obligation by filing a disclaimer of interest.
Talk to a Timeshare Attorney in California, if you need advice on disclaimers of interest. Our first consultation is free and allows us to assess your case. We aim to do our best to assist!
