Traditionally, an owner of a property owned everything from the ground up. However, people soon started sharing ground space by buying condominiums built on top of one another. Likewise, people started sharing time in vacation homes. There is no legal distinction between sharing property in space as and sharing it in time. However, when transferring ownership of a timeshare property, there are certain unique variables that should be taken into consideration.
Most timeshare transfers are made with cash, as opposed to a mortgage in a condominium transaction. Unlike most property, timeshare values do not increase. A timeshare resort may charge a 10% transfer fee, if it is stated in the contract. Prospective timeshare buyers should also find out about fees required to maintain facilities such as tennis courts and pools, which could add up to more than the purchase price.
Buyers should also consider whether they want a fixed unit timeshare, which is where the dates of ownership are written on the deed, or a floating timeshare, where reservations are made on a first-come first-serve basis. Other options include a leased timeshare or a vacation club timeshare, where the owner can choose from a variety of vacation destinations.