Further Reading

One of the primary reasons some people fall into the trap of scammers and frauds is that they do know their legal rights. It is always a good practice to know your rights when you are signing any contract or agreement. The timeshare industry is no exception. As with any other industry, the timeshare industry is also prone to unscrupulous tactics by some people. Stories abound of someone being duped into buying a timeshare and the property is not up to the standard of what they were promised, or, in some cases, may not even exist. This article will outline a few things to keep in mind while shopping for a timeshare.

Of primary concern for potential buyers is an awareness of the different kinds of timeshare plans. Basically, there are two types. The first is the deeded and titled timeshare, and the second is the right-to-use (also known as license-to-use) timeshare. A deeded and titled timeshare is one that is owned by a buyer, who acquires a deed and a specific property for a specified period of time annually, for a set number of years (usually 40). The other type, the right-to-use timeshare, gives the purchaser the right to all the features of the deeded and titled timeshare with the exception of the deed (that is, the title). A deeded timeshare can be passed on in the owner's estate, but a right-to-use timeshare is similar to a leased property which expires after a specified number of years.

The timeshare industry has also acquired the reputation of the used car industry in terms of the selling tactics they employ. It often begins with an invitation to a presentation offering you an expensive gift. When you actually attend, it turns out to be a high-pressure sales session reminiscent of a used car dealer who doesn't want you to walk out the door unless you sign a paper. And the "expensive gift" often turns out to be a mere gimmick. And people have to go through the trauma of sitting through the presentation which goes on for two hours. But as per the law, people are supposed to be informed about the length of the time they have to sit before receiving a free gift. Also, they must be informed about the physical condition of the facility. The timeshare companies are also legally prohibited from misrepresenting the market value of the timeshare property. They are also not to misinform you about the resale or exchange potential of the timeshare property.

The law also prohibits timeshare companies from omitting any oral promises that were made before the purchase of the property in the written contract. Likewise, they may not include any kind of fees that were never mentioned orally. The rules may vary from state to state. Some states also have a "cool-off period" (usually of two weeks) to allow you to cancel your contract should you change your mind.

But these rights aren't the only matter to consider. You should also ask yourself questions like: is this particular timeshare the perfect fit for you? Did you or someone you trust go on location to inspect the facility? Have you checked for complaints by previous owners at the Better Business Bureau? Have you had the opportunity to talk to current owners of the timeshare property? And what are your plans for the timeshare: do you plan to rent it out, or to resell it? How often do you think you will visit this vacation site before you want to go somewhere new? All of these answers should be clear in your mind before coming to a decision on whether or not to buy a timeshare property. You don't want to put money down on a unit that isn't truly your dream vacation destination!