Before purchasing a timeshare, it is very important that a buyer realize that they are purchasing an interest in real estate that may cost thousands of dollars. It is critical that the buyer carefully review all documents and understand all of their rights. Other factors that should be considered include:
- Seasonal demand for property
- Investment potential and evalution of financial risk
- Total costs including maintenance, closing fees, broker commissions and financing charges
- Everything promised or discussed is in writing
- Exchange programs with other resorts or locations
- Value of gift giveaways and other sales incentives
- State protection
There are variety of different types of timeshares but most fit under two categories: deeded or non-deeded. Buying a deeded timeshare gives the buyer an ownership interest in a piece of real estate. Buying a non-deeded timeshare gives a lease, license, or membership that allows the buyer to use the property for a specific amount of time. These are considerations that a buyer should carefully evaluate before making any decisions.
An attorney can be a valuable tool in helping you to gain perspective on the legal rights and liabilities as well as review documents and make sure everything is done correctly. Consult a real estate lawyer to avoid unnecessary financial risks.