Real Estate Investment 101: Getting Started

Choosing The Type Of Timeshare Contract Is Best Suited For Your Needs

Timeshares are a type of vacation property where more than one owner has the legal right to use the property. A timeshare is a way to secure a place for your family to vacation in an area that you enjoy going to. If you are considering buying a timeshare, it is important to understand the different types of timeshares and what to expect when you do buy a timeshare. Here are a few tips to ensure you get the best type of timeshare for your family's needs and to help ensure you understand the type of contract for this property before you sign.

Choosing the Best Type of Timeshare for Your Family

Regardless of where you choose to buy a timeshare, the options for the types of timeshares are generally similar, including whether you want to buy or used. Buying a used timeshare means you are buying the contract and property use from a private individual who wants to void their contract. Buying new is more expensive, but there is less risk of getting scammed because you know the title will be clean without any liens. When buying new, you may also get more benefits than when buying used. It is important to choose the type of timeshare contract that is best suited for your needs. The most common options include the following.

Fixed contract: With a fixed contract, you get the same property for the exact same time of the year and for the entire length of time specified in the contract.

Floating contract: With a floating contract, you may have some flexibility in choosing your time to use the property, but keep in mind that this means the other owners of the same property will also have the same option, so available time periods may go quickly.

Travel points club contract: A travel points club contract allows you to accumulate points from weeks spent as a vacation points user or timeshare owner. Unlike a fixed contract, a travel points contract, such as one which uses Marriott destination points, can be used at different locations. With this option, you also have the choice of splitting points up to be used in more than one vacation spot at different times during the year.

Right-to-use contract: This type of contract is similar to a floating contract in that you may be able to change the dates of the contract. You can either choose a group of weeks or one specific week that is used on a leased basis, which means you aren't an owner, but you have agreed to lease the property for as long as the contract states.

Before you sign a contract to buy a timeshare, always visit the property first. It is important to see with your own eyes exactly what you are getting. While at the property, talk to other timeshare owners to get their opinion of the property, its amenities, and how well the property is maintained. Before signing a contract to buy a timeshare, the most important thing to do is check your work schedule. If you sign a timeshare contract that specifies a date of use but you aren't able to get away from work during that week, you will lose your time on the property during the week specified.