Timeshare is also known as vacation ownership in a period of time at the leasure real estate. The timeshare buyer will need to pay an up-front payment and annual fee to own that fixed period in a year in 10 years, 20years, etc., or even a lifetime. With the period they bought, the timeshare investor can use it for travel purposes or for subleasing. When they don’t want to own it anymore, they can sell it. There are 2 things you need to know about timeshare: type of contract, and type of ownership.
There are 2 types of contract:
- Deeded Interests: the buyer has permanent ownership of the property. However, one property can be sold to many different buyers. In theory, a timeshare property can be owned by 52 persons followed by 52 weeks of the year.
- Shared Leased: similar to the Deeded Interests contract with a fixed period of the year. The difference is the length of the contract.
And 2 types of ownership:
- Fixed week: the timeshare owner will choose a week in a year, and that week will be fixed during the whole contract’s length.
- Floating week: the timeshare owner can choose any week in a year, but they have limited time to make decisions and to book the services. This choice is still more flexible than the fixed week.