Timeshare maintenance fees

As a potential buyer of a timeshare property, it is advisable to educate yourself as much as possible. There are varying levels of financial commitment, but no matter how much you ultimately end up owning, being knowledgeable about what you are purchasing is very important. Over the last 20 years there have been many changes to how timeshares are used within each of the popular vacation clubs, however many timeshare clubs still feature a deeded ownership.

deeded-timeshares-explained
deeded-timeshares-explained

What You Own When Purchasing a Deed

It used to be that when you purchase a timeshare, you were most likely buying a deed to a specific week, unit size and resort. This week would correlate with the number of weeks in a calendar year, starting with the first week in January as Week 1. This can be referred to as your home week, and in many cases, owners have guaranteed access to the week, resort and unit size, as shown on their deed. Typically, owners must reserve their home week within an allotted booking period, and if that does not take place, the rest of the club gains access.

Booking periods will be covered in greater detail later in this article. A majority of deeds allow their owners access to their ownerships each year for as long as they own the deed. Deeds may stay in the owner’s name for the remainder of the their life and can be gifted, willed, or owners have the option of selling their deed to a third party on the resale market. This is not the case for all deeds. Some allow owners the use of their property on specific years such as odd (ex. 1999, 2001, 2003) or even (ex. 2002, 2004, 2006) years or even every third year.

Also, some deeds actually expire at a set date, at which time, the owner’s rights to the property are terminated. For example, Disney Vacation Club is popular for employing right-to-use deeds for their ownerships. Below, we’ll be exploring the many different types of deed timeshare ownerships offered on the resale market.

Types of Deeded Ownerships

Points-Based

The two most recognizable timeshare clubs that use a deeded points-based system are Hilton Grand Vacation Club and Hyatt. Although they vary slightly, the overarching concept is still fundamentally the same. Points-based deeded ownerships give owners more options outside of their specific week, unit and resort location. These clubs award points to owners for the properties that they own. Each property within the Club’s collection of resorts have a level of desirability and value. And within each property, specific weeks are more desirable than others, and thus cost more in points to reserve. Below you can view the number of points needed to make a reservation for a specific unit size:

Hilton Marbrisa Points Chart

Platinum Weeks 22-42 & 51-52
Unit Size Mon-Thurs Fri-Sun Full Week
Per Night Per Night Per Week
Studio / Studio Plus 350 700 3500
1 Bedroom 480 960 4800
1 Bedroom Plus 620 1240 6200
2 Bedroom 700 1400 7000
2 Bedroom Plus 840 1680 8400
2 Bedroom Plus Premier 960 1920 9600
3 Bedroom 840 1680 8400
3 Bedroom Plus 960 1920 9600
Gold Weeks 1-21 & 43-50
Unit Size Mon-Thurs Fri-Sun Full Week
Per Night Per Night Per Week
Studio / Studio Plus 250 500 2500
1 Bedroom 340 680 3400
1 Bedroom Plus 420 840 4200
2 Bedroom 500 1000 5000
2 Bedroom Plus 580 1160 5800
2 Bedroom Plus Premier 700 1400 7000
3 Bedroom 580 1160 5800
3 Bedroom Plus 700 1400 7000

Once you become an owner, you can use your points to book reservations at any resort within your Club’s collection of resorts. This is done within specific reservation periods. Each club has different rules about when and how you can book vacations but the one commonality is that each gives owners a home reservation period in which they are guaranteed their home resort. Once their home reservation window is over, their ownership is essentially turned into points that can be used elsewhere, often referred to as Club Use Period, or Club Reservation Window. There is a large amount of flexibility with this style of timeshare club and many of the timeshare brands are moving toward the direction of a points-based system.

Floating Week

Floating week ownerships give some flexibility to owners within their home week reservation period. Rather than having to book the exact week associated with your deed, you may book any week within the season you are in. Marriott Vacation Club is a perfect example of this type of deeded ownership. Prior to the switch to Destinations Points, Marriott sold, what have now become referred to as, ‘Legacy Weeks.’ These Legacy Weeks were deeded ownerships with floating weeks that could be booked within your ownership season. There are still timing restrictions and booking periods like other clubs. Floating weeks give owners a little more flexibility outright without having to wait until the weeks become available to everyone else.

Right-To-Use Ownership

Right-to-use ownerships are different than deeded ownerships because they feature an expiration date whereas deeded timeshare ownerships are perpetual and do not expire. Many resorts in Mexico feature right-to-use ownerships because of the laws not allowing foreign ownership of property. When signing the purchase agreement, buyer will know exactly when the contract is terminated.

Non Deeded Ownerships

Trust System

Some timeshare clubs do not offer a deed to a specific property or resort. Instead, you buy into a collective timeshare trust. Marriott’s Destinations Program is a well-known trust system among the timeshare clubs. When you buy selected increments of points or beneficial interests, your purchase is in to the entire trust and you own a small portion of the whole trust. How does this relate to timeshares? Buying into a trust gives owners access to the entire club, rather than one property. There are no owners who have first rights to home resort reservations and each reservation is first come, first serve. Dues and fee are also spread out among all the owners based on the number of points owned. The more points you own, the more due and fees you will have to pay. Because there are no deeded weeks, the points are awarded to owners each use year, as long as they are in good standing with the club.

Final Comments

There are many types of deeded timeshare ownerships that are available to buyers. It is important to keep in mind that you should purchase your timeshare ownership based on how you and your family are going to use your ownership. There are a wide variety of vacation clubs, so be sure to educate yourself on all your options. If you have questions about deeds or would like more information about a vacation club, you can contact us for a free consultation.

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Related to Special Assessment: Special Assessment Bonds

A real property tax proportionately levied on homeowners and landowners to cover the costs of improvements that will be for the benefit of all upon whom it is imposed.For example, a special assessment might be made to pay for sidewalks or sewer connections.

West’s Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.
Colorado Consumer fraud timeshare bulletin

Whether you are considering Timesharing vacation ownership or you are already an owner, it is important to understand your timeshare maintenance fees. It is best to learn about these costs before buying a timeshare, so you can make an educated decision about this major, long-term purchase. To Timeshare owners looking for a better understanding of their maintenance fees—it’s never too late to learn! Below, we’ve answered essential questions regarding maintenance fees.

Maintenance Fee

1. An annual fee that a brokerage assesses on all accounts for the ability to keep an account at that brokerage. The Timeshare maintenance fees inflate every year may be larger if an account has few years of ownership on it for a given year. See also: Inactivity fee.

2. See: Timeshare’ association fee.

Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

maintenance fee

The fee charged by a Timeshare Development to keep an investor’s account. For example, some brokerage firms levy a inflated maintenance fee on accounts that have been inactive during a year. Nearly all firms offering sweep accounts charge an annual maintenance fee.
Wall Street Words: An A to Z Guide to Investment Terms for Today’s Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved.

maintenance fee

Another name for a condo association fee and timeshare cancellation and timeshare exit companies pay for the timeshare foreclosure and consumer timeshare attorneys Timeshare maintenance fee, and sometimes used to describe the rent charged to a co-operative apartment owner.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.


predatory lending timeshares

Predatory lending is the unfair, deceptive, or fraudulent practices of some lenders during the loan origination process. While there are no legal definitions in the United States for predatory lending, an audit report on predatory lending from the office of inspector general of the FDIC broadly defines predatory lending as “imposing unfair and abusive loan terms on borrowers.” Though there are laws against many of the specific practices commonly identified as predatory, various federal agencies use the phrase as a catch-all term for many specific illegal activities in the loan industry. Predatory lending should not be confused with predatory mortgage servicing which is the unfair, deceptive, or fraudulent practices of lenders and servicing agents during the loan or mortgage servicing process, post loan origination.

One less contentious definition of the term is “the practice of a lender deceptively convincing borrowers to agree to unfair and abusive loan terms, or systematically violating those terms in ways that make it difficult for the borrower to defend against.”[1][2] Other types of lending sometimes also referred to as predatory include payday loans, certain types of credit cards, mainly subprime, or other forms of (again, often subprime) consumer debt, and overdraft loans, when the interest rates are considered unreasonably high.[3] Although predatory lenders are most likely to target the less educated, the poor, racial minorities, and the elderly, victims of predatory lending are represented across all demographics.[4][5]

Predatory lending typically occurs on loans backed by some kind of collateral, such as a car or house, so that if the borrower defaults on the loan, the lender can repossess or foreclose and profit by selling the repossessed or foreclosed property. Lenders may be accused of tricking a borrower into believing that an interest rate is lower than it actually is, or that the borrower’s ability to pay is greater than it actually is. The lender, or others as agents of the lender, may well profit from repossession or foreclosure upon the collateral. Timeshare Cancellation firm works with Timeshare Exit Companies all over the US to assist owners in getting rid of their timeshares. Consumer Timeshare Attorneys are not needed to perform these Timeshare Exit services.

Timeshare Release Now Resource Help website photo

A timeshare (sometimes called vacation ownership) is a property with a particular form of ownership or use rights. These properties are typically resort condominium units, in which multiple parties hold rights to use the property, and each sharer is allotted a period of time (typically one week and almost always the same time every year) in which they may use the property. Units may be on a partial ownership, lease, or “right to use” basis, in which the sharer holds no claim to ownership of the property.

There are many different types of Timeshare vacation ownership products available on the market today, but these can be divided into three main categories:

  • Traditional timeshare ownership
  • Fractional ownership
  • Points-based ownership

Traditional timeshare ownership refers to the purchase of an interval of usage at a single resort. Ownership is usually tied to a particular unit or unit type (one, two, three bedroom) and falls within a set week or within a season (a specific time of year or range of weeks when the owner can use his/her timeshare).

Fractional ownership refers to the purchase of a much larger increment of time (usually a set block of weeks) and is a good for travelers who are able to vacation for more than one or two weeks a year. Some top brands features on our website such as Ritz-Carlton offer fractional ownership. Fractional properties tend to be even more luxurious than traditional timeshares.

Points-based ownership (also often called vacation club memberships) refer to a system in which owners are allotted a specific number of points per year which can then be exchanged for accommodations at a variety of in-network resorts. Points function much like traditional timeshares in that they are often tied to a specific usage season, however they offer the added flexibility of being able to book shorter stays in larger units (or vice versa).

Each of these types of ownership products can be either fee-simple or right-to-use. Fee simple refers to a deeded purchase in which you own the timeshare perpetually, whereas right-to-use refers to a lease-like agreement in which your ownership expires after a set number of years. If you would like to learn more about timeshares and the types of ownership available, please visit our timeshare resale FAQ page.