Timeshare Product Types

Timeshares are available in many areas of the world.

A timeshare is a legal arrangement that allows people to own property along with other owners for vacation purposes. Timeshares may be owned for life or for a specific amount of time based on the drawn contract. Timeshare owners are responsible for paying a monthly mortgage, property taxes, insurance and other fees. Because these individuals own their properties, they have the right to sell, exchange, rent or bequeath the properties as they deem necessary. Timeshares come in several types that are determined by the established vacation intervals.

Fixed-Week Timeshares

Fixed-week timeshares allow the owners to go on vacation during a specific week every year. Open weeks are based on availability and the terms of the timeshare contract. This is the most common type of timeshare arrangement. The cost of ownership can vary, particularly during popular vacation times. Those who own houses in warmer climates may pay higher rates if their weeks are during winter months because of high demand for those particular times.

Floating-Week Timeshares

Floating-week timeshares allow the purchaser to choose the week of the year that he desires to use the property. Availability is based upon the terms of the contract. Owners rotate week selection based on established guidelines.

Biennial-Week Timeshares

Biennial-week timeshares allow the owner to use the timeshare on a fixed-week basis every other year. This enables owners to take a year "off" and go on other vacations in between their times at the resort property.

Fractional Ownership Timeshares

Fractional ownership timeshares allow owners to buy a larger share of vacation time. Some owners choose to buy a month while others may buy four or six months' worth of time at a property. Fewer owners means that the mortgage payment is larger and the fees are not split among as many different owners, which makes this type of timeshare much more expensive than the others.

Split-Week Timeshares

Split-week timeshares allow the owner to split one week's vacation into several smaller parts. This enables the owner to take several smaller vacations at the resort more often throughout the year. Owners of split-week timeshares typically live near the resort where it is easily accessible, but this is not always the case.

References

• Federal Trade Commission: Time and Time Again
• American Resort Development Association: How Vacation Ownership Works
• Vacation Timeshare Rentals: FAQ Guide