Timeshare and vacation ownership are the two main types of a timeshare. They both share similar characteristics, including a contractual relationship between members and a real estate developer who owns the property. The difference between them lies in the structure of their business model. For example, while timeshares generally offer accommodations for short stays during peak season, vacation ownership allows members to use their accommodations year-round at any time they want.
If there has been an issue with the ownership, you must consult an experienced timeshare attorney.
Classification of Timeshare
You may have heard the terms “timeshare,” “vacation ownership,” or “fractional ownership” and wondered what these words mean.
The first thing to know is that all three types of vacation arrangements involve purchasing a specific amount of time in a home during some period (typically one year) for use by yourself or others as often as you like during this period. However, there are essential differences between them:
Timeshare: A timeshare gives you exclusive access to the property for a specified number of days per year; it’s usually sold with an option to buy more days if desired.
Vacation Ownership: This arrangement is similar to owning shares in a hotel or resort; those who own vacation ownership units benefit from staying at those properties.
Fractional Ownership: Fractional owners buy into entire homes within communities managed by private companies or associations; these homes are then rented out when not used by their owners
Vacation ownership is a type of time-sharing where the owner has an undivided interest in the property and may use it when he or she wishes. In contrast, a timeshare is a right to occupy specific units at intervals.
It’s common for vacation ownership properties to be managed by a resort company that sells memberships and rents out the timeshare units.
Fractional ownership is a form of shared ownership where you buy a share of the property. The owner owns the whole property, and you own a portion of it. You have some control over your time at the property by making reservations through the broker or managing company responsible for maintaining and renting your unit. The owner can sell or rent out your portion of the property.
Destination clubs are membership-based travel companies that offer ownership of various vacation destinations. Members buy into the club and pay annual fees, giving them access to its properties.
This type of timeshare should be used as a last resort when you cannot locate an available unit. If you join a destination club, you will likely find little benefit compared with other types of timeshares. If you have never invested in such properties, you must hire an experienced timeshare attorney to help you with the case.
Understand the terms and jargon if you want to buy a vacation home. There are plenty of resources that can help you make an informed decision.