Understanding Your Timeshare Rights

Types of Timeshare Plans

Before asserting your rights, it's important to understand the two primary types of timeshare plans:

Deeded Timeshares

• Ownership: The buyer owns the timeshare.
• Duration: Access to a specific facility for a set time each year, typically for up to 40 years.
• Inheritance: The timeshare can be passed down as it comes with a deed.

Right-to-Use Timeshares

• Ownership: The buyer has rights to use the property but does not own it.
• Duration: Similar access as deeded timeshares but without ownership and it expires after a set period.
• Inheritance: Non-transferable as there is no deed involved.

Sales Tactics and Legal Protections

The timeshare industry has been compared to the used car market in terms of aggressive sales tactics. Prospective buyers are often lured with invitations to presentations promising expensive gifts, only to face high-pressure sales environments. However, consumers are protected by law in several ways:

• Disclosure: Companies must inform attendees about the duration of the presentation and the conditions of any gifts.
• Property Condition: Full disclosure of the physical state of the timeshare facility is required.
• Value Representation: Misrepresentation of the timeshare's market value is illegal.
• Resale and Exchange: Companies cannot mislead buyers about the potential for resale or exchange of the timeshare.
• Contract Integrity: Oral promises made prior to purchase must be included in the written contract, and undisclosed fees are prohibited.

Cooling-Off Period

Many states have implemented a cooling-off period, typically around two weeks, during which buyers can cancel their contracts without penalty.

Critical Considerations Before Purchasing a Timeshare

Before committing to a timeshare, consider the following:

• Desire: Do you genuinely want a timeshare?
• Facility Inspection: Have you visited and inspected the property?
• Research: Have you checked with the Better Business Bureau or spoken to current timeshare owners?
• Rental Plans: Do you intend to rent out your timeshare?
• Resale Considerations: Are you thinking about reselling your timeshare in the future?
• Exchange Flexibility: How often do you plan to exchange vacation sites?

The Timeshare Market by the Numbers

While the allure of a vacation home may be strong, it's essential to look at the data. According to the American Resort Development Association (ARDA), the timeshare industry generated over $10.5 billion in sales in the United States in 2019. However, a study by the University of Central Florida found that nearly 85% of timeshare buyers regret their purchase, citing money, fear, confusion, intimidation, and distrust as their main reasons.

Furthermore, the secondary market for timeshares is often oversaturated, making resale difficult and often at a significant loss. It's reported that timeshares can lose as much as 50% of their value the moment they are purchased, a fact not widely discussed in sales presentations.

In conclusion, understanding your timeshare rights is paramount to making an informed decision. By being aware of the types of timeshares, the legal protections in place, and the realities of the market, you can ensure that your vacation investment is a source of relaxation, not regret.