How Timeshares Work
1. What is a timeshare?
A timeshare is a kind of property ownership that allows you to acquire a percentage of interest in a vacation home or resort
for a specific period of time.
2. How do timeshares work?
There are basically 2 different kinds of time shares.
• You buy deeded ownership in a piece of real estate that grants you shared interest in a unit that you use for a defined time each year
• You buy a lease, license or membership that lets you use various properties like hotel, resort or condo units for a specific amount of time over a set number of years.
3. How do you schedule times to use a timeshare?
Again, there are usually 2 options.
• You commit to a fixed time each year when you use the timeshare.
• You choose a floating timeshare, where your schedule changes. Each year you must book the period of time you want.
4. What’s a timeshare exchange?
Many timeshares allow you to expand the number of places you can stay by paying a fee to join an exchange. You essentially deposit some or all of the vacation time you own into an exchange system, and then withdraw a comparable amount of time at another accommodation worldwide.
5. What should I watch for when shopping for a timeshare?
If you’re hoping your timeshare will appreciate in value, that is generally not the case.