Do you know the different types of timeshare that exists?
Actually there are several different types of timeshare. Many companies offer this product for sale, but which one best suits your needs? Are all timeshare contracts legal? From Legalbono we tell you the differences between all the timeshare so you can recognize them.
There are several ways to sell a timeshare.
Fixed Week VS Floating Week:
These two types of timeshare are the most know. If we speak about fixed week, this type has the next features:
- Pay for the right-to-use of one particular unit.
- It is located in one particular resort.
- It is just the same week after year.
- The contract can last up to 50 years.
Everything about fixed week timeshare is fixed. This is, nothing is pending to be confirmed and you can rest assure that you will enjoy the property under those conditions.. It is the perfect contract for a person who needs to know the place of vacation.
The main problem is related to the payment of the annual maintenance fees as most people find them unaffordable. This is quite often in cases where a new management company runs a resort and it is most common for members to find the accommodation deteriorate in quality when under new management.
On the other hand, the floating week is based on able to book use of the unit at any time during the year subject to availability.
But here, we find another inconvenience for members when they find themselves unable to book their timeshare holiday due to lack of availability. While resorts reserve the best holidays for non-members.
Points timeshare and Fixed season timeshare:
Nowadays, many resorts sell points-based systems. A points-based timeshare allows you an annual apportionment of points which you can trade for any resort within the brand’s inventory or with it is affiliate resorts. In this system, the points can be exchanged for other services like flights and airports transfers.
With a fixed season timeshare, you have a different week of the year with certain colour. There are set seasons in which you are permitted to use your timeshare week. These colours denote the level of popularity of that week. You can choose your coloured week depending on your contract.
Fractional timeshare Vs Fractional Ownership:
If most timeshare contracts breach the legal duration, the fractional timeshare shortens the time of duration between 15 and 19 years. When the term has finished the members try to get a sum pay-out for their timeshare.
In fact, it is rarely the case that a timeshare can be resold for a decent cash sum. Therefore, a timeshare cannot be bought as investment. Many companies use this product in their sales speech as a possible investment but this is illegal.
Fractional Ownership is completely different to fractional timeshare. In this contract, you hold a share in the actual real state of the property. This property tends to be more luxurious than others, so it is more expensive. With a fractional Ownership you can access for two months or more, depending on the agreement with the other owners.
Maybe the best thing of the fractional ownership is you have a legitimately sold fractional ownership has more chance of holding value.
Private Residence Clubs, Travel Clubs and Exchange Companies:
Private Residence Clubs offer luxurious holidays. The audience of this type of timeshare is wealthy people. The main services are: private chauffeured cars, personal chef and Butler, and so on. With a Private Residence Club, holders get equity ownership in the property`s real state.
Travel clubs is other type of timeshare. These clubs sell “exclusive membership” that entitles you to discounts on attractions, Access to certain services, amenities and accommodations. Most of these, do not have their resorts.
Exchange Companies are not considered timeshare. A timeshare Exchange programme is sold as a separate product through intermediary company. This possibility can be a supplement of your timeshare contract. You have certain credits which can be used on holidays the system up to the value of your points.
In spite of the differences that exists between all kind of timeshare contracts, they all have one thing in common: “it can be the subject of a complaint”. If you are involved in a timeshare contract and you need a legal advice, we can help you.
