How All The Timeshare Scams Got Started
First let’s look at, what is a timeshare – A timeshare is a program in which a group of people shares use of a property by dividing the rights to use the property for specific time periods.
Although the property is usually a residential project such as a condominium, developers have applied the time-sharing concept to other types of properties, such as houseboats, campgrounds, and recreational vehicle parks.
Timeshare Intervals
The developer divides occupancy of each of the units into intervals. The developer then sells these intervals to buyers, so each owner of an interval receives the right to use a specific unit for a specific time period corresponding to the interval they purchased. Each timeshare owner then shares the usage of the property along the other owners.
Through this shared usage, the owners have accommodations in the property, without carrying the financial and property management burdens associated with a conventional ownership.
Timeshare intervals are normally one week long, a few timeshare projects, however, use other ownership fractions, such as one-tenth or one-quarter ownership’s.
Almost all timeshare projects are based on one-week intervals, the words “week” or “timeshare week” are used in the timesharing community to mean a one-week timeshare.
In addition to the purchase price, timeshare owners also pay an annual fee for property upkeep and management. Most timeshare projects also reserve one or two one weeks usage of each unit for maintenance and repairs.
Many timeshare developers have used and still use high-pressure and deceptive sales tactics, with misleading and inaccurate portrayals of what buyers could expect from their timeshare ownership. This is why today there are some many timeshare cancellation.
Over the years, the timeshare industry has also had its share of unethical and dishonest resort developers and operators. Consequently, timesharing has a bad reputation and why there are so many stories about timeshare scams. It’s ture a lot of people buy timesharing but after they buy a lot of people send the developer a timeshare cancellation letter.
Because of its bad reputation, developers have developed other names for timeshare projects, such as Vacation Ownership or Fractional Ownership.
Types Of Timeshare
While all timeshare provide the owner, a right to occupy a given period of time. There are many differences in how this is done.
Fixed, Floating and Rotating
In the floating week timeshare, is the right to use a unit for a specified period. However, you must contact the resort to reserve a specific week during the float period.
In a fixed week system, occupancy is for the same week, and usually the every year. As can be expected, some weeks are more popular than others; this is usually reflected in the price of the timeshare.
Since all other owners that share your float period can reserve any time during that period, if you delay making a reservation you might find that all of the units have already been reserved for the times that you wish to reserve.
Then you may have to accept a week you may not want, or you may have to forego your usage for that year. Resorts set the policy as to how far in advance you can reserve a floating week. Many resorts require advance payment of maintenance fees to reserve a float week.
Some timeshares use a rotating week system. In this type, usage week changes from year to year on a fixed schedule.
Deeded – Right-To-Use Timeshare
Another major difference is whether the timeshare is a deeded interest or a “right-to-use” arrangement. Most deeded programs divide ownership of each unit into specific week increments, the buyer, actually purchases a fractional ownership of the unit.
In some cases, the deed may convey a specific fractional ownership interest corresponding to the ownership period without tying the ownership to a specific week.
In the right-to-use program, the buyer receive the right to use the unit for a specified number of years. At the end of that period, the usage rights revert to the developer.
Both deeded and “right-to-use” properties can operate with either fixed or floating week programs. In a deeded floating program, the program documents will specify that the owner’s usage is a floating right that must be reserved, and that the owner does not receive any special preferences to reserve the unit and week that appears on their deed.
Some unscrupulous developers of un-deeded resorts have “oversold” the project; meaning they have sold more intervals to owners than the resort can provide. (This is most likely to occur at an un-deeded resort because the absence of deeds linking units sold to specific ownership interests makes it easier to oversell the resort.)
When this happens, owners will find it very difficult to reserve a usage period. Accordingly, if you are purchasing a week at an un-deeded floating time resort, you should determine whether you are adequately protected against overselling of the resort’s inventory.
As I said before, the timeshare industry is full of unethical and dishonest resort developers and operators. We get phone calls everyday from people who have fallen for some kind of timeshare scam pitch and now need help to get out from under the timeshare.
Even if your timeshare ownership is past your timeshare cancellation period, or years past your timeshare cancellation period we can help you.
If you own a timeshare and would like know how to cancel a timeshare, to learn more about a timeshare cancellation see our frequently asked questions or give us a call.
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For A Free Timeshare Cancellation Consultation,
Call 24/7: 1-855-600-9053