Timeshare ownership has become a concept that tantalizes most people. Given that, the sales of vacation timeshares flourish since its introduction in the 1960s. Unfortunately, the promise of owning a piece of vacation property is one that often goes unrealized. No wonder why there is an increasing number of dissatisfied owners who want to get out of their timeshares nowadays.
In timeshare ownership, the owner must pay an annual maintenance fee and the cost of the resort exchange program. There are problems that commonly arise with this. Under a lease or right-to-use agreement, an investor does not hold a title to any property. Thus, if the project happens to fail, the entire investment in the timeshare could be lost.
At one particular instance, there is a timeshare company that was closed by state government because it did not own some of the property it was offering and was overselling its properties. Luckily, the investors’ money in that state was saved due to a special state reimbursement fund.
Other problems that may surface include timeshares being sold before construction has begun or adequate financing has been obtained. With this, the investor’s funds may be part of the actual development money, and if pre-construction sales of timeshares are not up to expectations, the developer may bail out on the project, leaving investors out in the cold.
Bear in mind that more and more owners nowadays are unhappy with their timeshares and want to get rid of it. Some even consult a timeshare transfer company such as the Transfer Smart in getting rid of their timeshares. So, before signing any contract, visit the site before purchase and consult with reliable local sources for information about the area and the development. It’s also a good idea to obtain a reliability report from the BBB.