Understanding Time Share Resales
The notion of a time share was presented in Europe during the 1960’s. Somewhere in the French Alps, a ski resort developer thought of giving guests the ownership of the resort instead of just renting it to them. The ownership would cover a week wherein owners would have the power and authority to do whatever they want with their time share deeds.
Types of Time Share Contracts
Time share deeds are contracts of the resort property that usually covers a week’s time. The duration of the time share is called time share interval. This time share interval recurs every year.
The time line of a time share depends on what kind of contract the owner decided to take:
1. Deeded contract
In this type of contract, the use of the resort is divided into increments of usually a week. These increments are offered as fractional ownership and are recognized real properties.
Owners of this type of contract have the following options of use:
a. Use the Time Share Interval
Owners can choose to use their time share, adhering to what is stipulated on their contract. that is what week and what resort for a vacation.
b. Rent Out the Owned Time Share
Owners can choose to post their time shares for rent at available advertising websites on the net. Time share resales are also available on these kinds of websites.
c. Make a Gift Out of It
Instead of time share resales or rentals, owners can choose to offer the time shares to families, relatives or close friends as gifts. Owners of these time shares would surely be able to maintain close ties with those closest to him by giving them time shares.
d. Time Share Internal Exchange Under the Umbrella Group
Owners of time shares always have the option to exchange their deeds with other owners under the particular umbrella group of time share resorts they belong to.
This particular action postdates those of time share resales rentals. When time share resorts started to merge under one umbrella group, the number of time share resales or rentals decreased. This shows that owners of time shares does want to retain their acquired time shares, they just opted for time share resales or rentals due to boredom of having to take a vacation at the same resort every year.
e. Time Share External Exchange with about 5,000 Time Share Resorts all Over the World
The exchange trade of time share had a major breakthrough by opening the doors for the possible exchange of time shares to more than 5,000 resorts globally.
Due to this, the number of time share resales or rentals continued its decrease and almost fell to a slump among advertising websites
2. Right to use Contracts
With this kind of time share contract, the purchaser of the time share has only the right to use the property. This right to use is in accordance with what is stipulated on the contract.
At some point, however, the contract terminates and all rights are subsequently returned to the property developer. Simply said, the purchaser of the time share can only use the resort within a specified timeline. The contract simply grants the right to the purchaser for usage and the purchaser, therefore, has limitations with regards to the time share.
Time share resales are therefore not possible with this kind of contract since the purchaser is not given full authority over the resort.
Also, this kind of contract is usually observed by countries with certain limits on ownership of foreign properties. In countries such as Mexico, they develop time share resorts but offer them through a right to use contract only and not deeded contracts. In these contracts, time share resales are not possible because purchasers of time shares don’t actually own the time share deeds and therefore have no right to do what they want with the properties.
The Use of the Right to Use Contracts in Vacation Clubs
What are Vacation Clubs? These are the organizations that may have opted to invest on time shares. They may own time share deeds at various resorts worldwide.
These Vacation Clubs have the option to sell their time share units to club members either via a deeded or right to use contract. This action is also called time share resales because the Vacation Club is merely reselling what they already bought from the time share resort.
An example of a Vacation Club is the Disney vacation Club. Club members who bought time share resales may reserve vacation time at the owned resort properties of the Vacation Club.