{"id":369432,"date":"2016-04-04T10:47:27","date_gmt":"2016-04-04T15:47:27","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/realestate\/owning-a-home\/timeshare-ownership.html"},"modified":"2023-12-11T12:00:26","modified_gmt":"2023-12-11T17:00:26","slug":"timeshare-ownership","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/realestate\/owning-a-home\/timeshare-ownership.html","title":{"rendered":"Timeshare Ownership"},"content":{"rendered":"\n
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Timeshare Ownership<\/h1>\n
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\n By Robert Rafii, Esq.<\/a> | Legally reviewed by Aisha Success, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Timeshares can be appealing to some who travel often. Some timeshare owners benefit from saving money on hotel rooms because of their consistent use of their vacation ownership. Others, however, end up regretting the decision to buy into a timeshare unit. A timeshare ownership model comes with lots of fine print.<\/p>\r\n

What Is a Timeshare?<\/h2>\r\n

A traditional timeshare ownership interest is not exactly the same as vacation home ownership. Timeshare contracts grant benefits in fractional ownership properties. Under this model, developers purchase or build one or more condominium-type units<\/a>. Then they complete the required legal steps in order to sell brief stays, usually lasting a week, in these units. All types of timeshares involve fractional owners who have property access for a designated period of time.<\/p>\r\n

The timeshare industry isn’t for buyers who want a second home. Timeshare buyers are not homeowners, as the entire attraction is avoiding the day-to-day hassles of home upkeep. Still, some states consider some timeshares<\/a> to be actual pieces of real estate, making certain real estate laws applicable to timeshare agreements.<\/p>\r\n

Deeded Timeshares<\/h3>\r\n

A deeded timeshare<\/a> allows you to buy a fraction of a vacation property through a deed<\/a>. You will share this piece of real estate with a number of other people. Buyers are part of a fractional ownership with other owners. For example, each deeded ownership may give an owner one-tenth interest in a private residence club. Though that might sound minimal, it can still be legitimate ownership. For some, that is important.<\/p>\r\n

Leased Timeshares<\/h3>\r\n

A leased timeshare arrangement differs from a deeded timeshare. Here, one entity owns the real estate property and is renting it out to those who buy into the timeshare arrangement. Fractional ownership isn’t tied to a deed. Instead, this type of vacation club ownership is based on contract alone. Owners have a right to limited weekly stays in the property over a specified number of years.<\/p>\r\n

Buyers are simply renting vacation time. The purchase price, comprising of a point system, usually covers a set week or two annually. In truth, you’re not earning anything tangible besides the vacation and memories made. This may be okay, depending on why you are purchasing a timeshare. Just note the FTC warning<\/a> that "the value of a timeshare is in its use as a vacation destination, not as an investment." In other words, this is not an investment in the same way as buying traditional real estate can be.<\/p>\r\n

The Risks of Timeshares<\/h2>\r\n

Timeshares can have a bit of a bad reputation. That is not to say all timeshares are a bad idea, but you should consider several factors prior to purchasing a timeshare<\/a>. These include:<\/p>\r\n