What Is A Timeshare? How Does A Timeshare Work?
What is a timeshare? A timeshare is shared ownership between multiple people who all purchase the right to use a single property, usually increments of one week, called a timeshare week. This is also called fractional ownership.
What kind of property can be shared? A timeshare can be shared ownership of vacation real estate, such as at a vacation resort, condominium, apartment, campgrounds and even boats, sailboats and yachts.
Type Of Contract - Fixed Week, Floating Week, Points
A fixed week timeshare means that the owner has the exclusive right to the property at the same resort with the same size of unit and in the same week each year for one week, or multiple weeks out of the year depending on the number of weeks allotted in the contract.
Floating weeks are dynamic, or rotating and the week or unit size details may change or vary from year to year. Owners with a floating timeshare week need to get in touch with their home resort to finalize the details.
Floating timeshare weeks were designed to give owners more options and allows them to use their week at any time of the year. The downside of floating weeks is that it's harder for owners to book weeks that they want due to being booked, requiring owners to reserve their week far in advance so that it isn't yet booked when they try to reserve their week.
The points system gives timeshare owners an allotted amount of points every year, or every other year which can be used to vacation at various resorts or properties later on. The points can be purchased and have a price value equivalent.
An owner will purchase the amount of points they believe they will use each year depending on the resort they want to stay at, the size of the room or number of rooms, the location as well as demand.
Different companies sell points at different rates, so how much you purchase will also depend on how much points sell for at the company you are purchasing points from.
Type Of Shared Ownership - Deeded & Leased
With a deeded timeshare the ownership of the property is divided among all timeshare owners, each of whom share in the deed ownership. Each owner of the deed has a contract that allows them to use the property one week, or multiple weeks out of the year.
In most circumstances a deeded timeshare does not expire. Each owner is able to sell their part of the deed, will it to another person or give it away if they so choose.
A shared lease, or right to use timeshare contract divides the property up between the holders of the shared lease. Each owner has a right to use the timeshare for a limited number of years. You may not sell, rent or give away this time of timeshare and owners do not have ownership rights of the property.