When you purchased your timeshare, all you could think about was enjoying it. Now that the time has come to use your timeshare, you find yourself trying to unravel the mystery of timeshare terms. From deeded vs right-to-use timeshares to fixed week vs floating week timeshares, there is a lot to learn. If your head is spinning from all these timeshare terms, take a deep breath and let us help you decipher them.
Deeded vs Right to Use
While these terms are best understood before signing on the dotted line, exactly what they mean can sometimes get lost in the excitement of your purchase.
Deeded timeshares are the foundation the timeshare industry was built on. If you’ve purchased a deeded timeshare, it means you own it for life unless you decide to sell it. With a deeded timeshare, you are buying a real property interest in a vacation ownership resort. This type of ownership gives you the right to use the vacation property for a specific period of time each year, typically one week. As an owner, you can also rent out your timeshare or leave it to a family member in your will. Once a deeded timeshare resort is sold out, resort maintenance transfers from the developer to an HOA which maintains the property on behalf of the owners.
Right to Use Timeshare
With a right to use timeshare, you purchase a block of time during which you can use the property as opposed to buying property. The timeframe can be anywhere from 10 to 50 years and during that time you are entitled to use a specific unit or week at a resort. Once your right to use timeshare agreement expires you are no longer responsible for the timeshare. With this type of timeshare, the control and maintenance of the property remain with the developer and are not passed on to an HOA.
Floating Week vs Fixed Week Timeshares
Most timeshares operate under fractional ownership which means the ownership is split between many timeshare owners. The latest trend in timeshare ownership is the point-based system and we’ll circle back to that. However, traditional timeshare ownership works on either a floating week or fixed week system. The main difference between the two options is how owners can schedule visits.
Floating-week timeshare means a timeshare owner is not restricted to one particular week(s) each year or one property. Although this option offers more flexibility, floating-week systems have their pros and cons. Many people prefer to travel during holiday weeks or other popular times of the year. This can create difficulty when trying to book your timeshare vacation. As an owner, it can be frustrating not to have the timeshare you are paying for available when you want to use it.
With a fixed-week timeshare, the owners select a calendar week or weeks they want to use their timeshare. The chosen time period is reserved for their use each year at a particular vacation property. While this eliminates the need to make advanced reservations or worry about availability, it offers little or no flexibility should there be an unexpected event that changes your plans. Fixed-week timeshare owners often face limited availability when trying to switch their week and end up losing their vacation. The phrase “use it or lose it” comes to mind with this type of ownership.
For timeshares with a point-based system, points are the equivalent of currency. You purchase points through a “home resort” or vacation club. These points can be used at any destination within the network of the resort or club where they were purchased. Longer stays and in-demand destinations will require a larger number of points. Each resort and club has its own system for how your points can be used. Typically, you make a reservation with your allotted points for when, where, and how long you want to stay.
Reconsidering Timeshare Ownership?
When it comes to timeshare ownership, there are plenty of options. Whether you choose a floating week or fixed week timeshare, it’s important to research all your options. Ask plenty of questions. Timeshares can be enticing, and often many get persuaded into buying something that may not be the best option for them. In simple terms, know what you’re signing up for before you sign!
It doesn’t matter what type of timeshare you have – deeded vs right to use, fixed-week, floating-week, or point-based, If you aren’t happy with your purchase, Timeshare Legal can help. We have extensive industry experience, an A+ rating with the Better Business Bureau, and will conduct a free consultation to determine if your timeshare is eligible for cancellation.
Timeshare Legal was founded by Christian Highlander in 2009 and has helped thousands of clients cancel timeshare contracts totaling over half a billion dollars to date. Christian has over 20 years of experience and has worked on both sides of the industry. The Timeshare Legal
The Timeshare Legal team is passionate about providing timeshare exit solutions that have the least possible impact on your credit and financial future. Timeshare Legal is a professional, full-service timeshare cancellation company and we offer a timeshare exit program with no upfront cost. Contact us today to find out if your timeshare is eligible for cancellation and take your first step toward financial freedom.