What Are the Different Types of Timeshares?
Are you considering investing in a timeshare, or maybe you’re already in one and want to learn more about it? Although most timeshare sellers don’t tell you this, there are different types of contracts. Just like a mortgage, the terms of your contract matter significantly, especially when you’re trying to get out of a timeshare.
When exploring the various types of timeshares, it's essential to compare and contrast the offerings of the best timeshare companies here, as they provide comprehensive insights into the industry's diverse options and help in making informed decisions about your investment in vacation ownership.
Learning the different types of timeshares is essential before you sign a contract or walk away from yours without knowing the consequences. You may need to hire professionals like ACA Group Timeshare Cancellation Services if you’re in a more rigid contract.
Here, we’ll discuss the different types of timeshares to help you make an informed decision.
Fixed Week
One of the most popular timeshare contracts, the fixed-week gives users the right to use a specific unit in a dedicated resort during a set week each year. This is great if you know you will always want to vacation at the same place during the same time every year for the length of your contract. The only thing that isn’t fixed about this timeshare type is the annual maintenance fees, which typically increase substantially over the years.
Floating Week
Similar to a fixed week, floating weeks give you access to the same unit at a particular resort, but you can choose when you use it as long as it’s available. Floating weeks sound more desirable to many, but members often find that their preferred weeks are unavailable as the resorts use those weeks for non-members or staff instead.
Fixed Season
Fixed season timeshares permit you to use the same unit at the same resort any time within a particular season. Seasons are determined by the weeks of the year rather than spring/summer/fall/winter. Instead, they are broken up by colors that determine how popular a week is, and your contract will stipulate which color you can use.
Points-Based
Another popular type of timeshare contract is points-based. The buyer is permitted to use their annual points to trade their resort for another resort affiliated with the brand. This gives you more flexibility in where and when you can vacation as long as your preferred week and location are available and you have enough points to trade for it.
Fractional/Fractional Ownership
Those looking for a “short-term” contract can invest in a fractional timeshare. While typical contracts can go up to 50 years, fractionals last from 15-19 years. After that term ends, you are given a lump sum payout if the timeshare is resold. The downside to this clause is that timeshares are rarely sold again and never accrue value, as they can’t be sold as investments (it’s illegal).
On the other hand, fractional ownership is a timeshare contract that gives the buyer a share in the property’s real estate value. These are the most expensive types of ownership, but you can use the timeshare for months, depending on how much of a buy-in you have. Since you own a share in the property, this could be an investment, provided the company you purchase from is legitimate.
Clubs
There are two types of timeshare clubs: private residence and travel. In a private residence club, those with a large budget can enjoy the perks of luxury living, including chauffeurs, personal staff, chiefs, and more. These timeshares come with equity ownership in the property.
Travel clubs, however, give you discounts on attractions, amenities, accommodations, etc., if you schedule your vacation ahead. These are timeshares of a sort, offering savings you might not get if you book your trip by yourself. However, these aren’t always legitimate, so be cautious before you get hooked on one of these contracts.
Regardless of the type of contract you sign, these documents always have clauses and stipulations in the fine print that are typically in the interest of the seller. If you’ve entered an agreement with a timeshare resort or developer and want to get out, contact a timeshare attorney to find out what your legal options include.
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