What Is A Timeshare Contract?
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If ever you have wanted to own a vacation home without spending a lot of cash and having to experience death-by-mortgage, timeshares are a good option to consider. Timeshares allow an individual to “own” a property for a fixed limited amount of time every year.
For example, if Person A has a property in a prime vacation spot, he can offer that property as a timeshare. Person B, an individual looking for a vacation home, can deal with Person A to temporarily own that property during the first week of January every year. To finalize and legalize the deal, a timeshare contract must be signed by both parties.
This practice is common in Mexico, Colorado, Hawaii, Arizona, Florida, and other premium vacation spots in the United States. Of course, it does not only apply to properties in vacation spots. Some people offer their condominium units and houses located near business districts.
The contract will legally bind the timeshare buyer to pay the seller a specific amount to “own” or have exclusive use of the property on a specific date every year. Buyers typically settle for one to two weeks.
The price of a timeshare contract depends on the time of the year the property will be owned and its location. Typically, dates that fall during the holidays are the most expensive. The location of the property can also affect the price. For example, a timeshare property near a beach will have more expensive contracts for summer weeks.
Another important thing to note about timeshare contracts is that they oblige the buyer to pay yearly maintenance fees for the property. The cost may vary, and it will be divided among all the other timeshare buyers.
Do also note that since a timeshare property or unit is considered as a real property or estate, timeshare contracts are affected by state and federal statutes. Before signing a timeshare contract, be sure to consult real estate laws and the other details indicated in the fine print.
Cancel My Timeshare Contract
Despite timeshare properties being more affordable than having an additional estate of your own, it is not exactly cheap. In addition, if you plan to cancel timeshare contract, expect a lot of unnecessary expenses and lots of stress for timeshare cancellation.
Scammers are prevalent when it comes to timeshare properties. Another concern is dubious timeshare sellers. They employ lowbrow marketing and selling techniques to convince potential clients to buy timeshare even if they cannot afford it in the long run or cannot actually use the timeshare properties that much.
One of the ways they “persuade” buyers is to let them attend seminars continuously that can condition them to buy. Another method is to make other sellers make their prices higher, so that the buyer thinks that the sale is a steal.
In A Nutshell
Basically, timeshares are like renting in advance for a premium location yearly. The main difference is that you will be obliged to pay for maintenance fees under a strict contract. Not to mention that if you do not use the property during the secured duration in your contract, it will become a waste and the process of timeshare contract cancellation can be a major pain.
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