Timeshare Purchase – The Devil is in the Details!

Are you currently in the market to purchase a timeshare property?  Well, as they say, “The Devil is in the Details”!  Here are the major points to go over before you make that special purchase.

Before making a purchase from another individual, make sure that maintenance fees and monthly payments (if applicable) are up to date.  Also, is the property in foreclosure by the property developer?  Did you know that some timeshare resorts require a deposit upon check-in?  Make sure that all special assessments (if applicable) are up to date.  Special assessments may be an additional charge that the timeshare property owner may incur by the property developer for various reasons, such as overall property damage due to in climate weather or remodeling the unit(s) etc. 

The deed for timeshare property is recorded in the county where the property lies.  Check with the county to insure that the property is deeded ownership by the current owner.  Also, make sure that the property is not leased.

Did you know that a timeshare owner of a timeshare property could rent, sell, or even pass on the property to friends or other relatives over the years?  Make sure that the deed is clear with no special legal wording that “may” indicate that the property is being assigned to another individual in the future.  Timeshare property can also be donated at any time (given away).  Make sure there is no special provision in the recorded deed that may indicate this condition.  Sometimes, property owners, upon their demise, deem to donate the property to a worthy cause.

Is the property a fixed week or a floating week?  If a floating week, how far in advance does the owner have to make reservations? 

Are property taxes up to date?  If not, be prepared to bring them up to date at the closing, as this will be required in order to transfer the deed.  Also, ask the current owner or the property developer for all covenants, codes and restrictions for the timeshare property in question. 

Have a professional explain the process for closing on a timeshare property prior to the closing.  Ask how the deed will be transferred to you, as the new buyer.  Also, ask when the property was initially built.  If an older property, has it been remodeled recently?  You can always check with the property developer to verify the validity of the information being provided by the seller.  What is the rating of the resort?

Is the property in a desired location?  Keep in mind, that, as an example, if you own timeshare property in Orlando, Florida, once the kids have left the nest, you will want to exchange your timeshare property periodically for another area that you have been wanting to vacation in.

One of the biggest issues on the potential of purchasing timeshare property is to make sure that the property developer does NOT have the First Right of Refusal.  If the property developer does have the First Right of Refusal, you will have to obtain a legal document in writing giving you permission to purchase the timeshare property indicating that the property developer waives their right to purchase.

Well, I have covered quite a number of issues that you should be aware of.  Keep in mind, that these are just some of the concerns you should have when purchasing timeshare property from another individual.  There may be many more issues and concerns you may have such as amenities on the property that are tailored to your requirements etc.

As always, I highly recommend taking the advice of a timeshare professional when entering into a contract to buy or sell timeshare property.  This is for YOUR protection!