Can I Sell a Timeshare?
Provided by HG.org
Before the owner of a timeshare interest purchases part of the property rights, it is best to read the contract fully, as some of these have specific selling conditions only. However, once the sale is complete, the owner may have the option to sell his or her interest in the building to anyone, certain individuals or to others that have the same property interests.
The deed or property agreement contract will stipulate what conditions apply to the purchase and any selling options for the interests owned by the buyer. It is important to understand if the individual has actually purchased a timeshare or a vacation interval plan. These are not usually investment opportunities, and selling them after the initial purchase usually garners a great deal less than the original payment. Unless the owner is no longer using the property in any way, selling the timeshare may provide little compensation for what the location provided. However, if the timeshare still gives the owner times to getaway or for vacation, he or she may need to rethink selling.
The Purchase Agreement Explained
The stipulations in the purchase agreement usually explain if the owner will remain the owner of interest for the rest of his or her life or if there are only so many years attached to the deed of ownership. This is real property with possible inheritable interests to heirs if the timeshare passes down after the death of the owner. However, it is still just a portion of the full property with others owning a portion as well. Most purchase agreements include the ability to sell, rent, exchange or give the interest ownership to others for the duration the owner possesses the property. Sometimes, an agency or company is part of the booking process for the times each owner will reside in the building or on the property.
When the deed of ownership provides specific conditions of selling a timeshare, the owner in the interests must comply with the contractual obligations. This may lead to a situation where the interest is sold before expiration or only through certain circumstances. Many are able to resell the interest through a public forum with an agent or employee of a company. If the property has an attachment or connection to a business, the interests may only transfer through sale with the agent when holding meetings for resell. When no terms confine the owner, he or she may resell the interest rights with no or few limitations.
Before the resell goes through, the owner should disclose all the fees that go along with the usual and standard upkeep, maintenance and ownership. Without doing so, the current owner may experience difficulties after the new owner discovers these issues. The fees may include a monthly mortgage, annual maintenance fees, property taxes and similar items. Some owners may need to pay a cleaning expense or restocking fee for food, liquor and other items. Some have a homeowner’s association that requires dues and monthly or annual bill payment. Membership in an HOA for these timeshare properties is generally mandatory when this factor applies.
Type of Ownership
The ability to resell a currently owned timeshare depends significantly upon what type of ownership the individual has with the property. He or she may have a fixed or floating time to reside in the building. This could specify certain weeks, a season or time the individual may reserve. Fractional ownership provides a larger share than usual timeshares give. This could include up to 26 weeks of time at the property each year. Some are biennial with occupation of a resort or beach front property. Access to some of these only occurs every other year for the owner and his or her guests.
Some own a lockoff or a lockout. This is a part of the property with the option to rent or exchange so many bedrooms and bathrooms. A points-based vacation program permits the individual to buy points in the timeshare. These are then exchangeable for time at one of several locations. These points may specify how long and where the person may reside. This could also involve the size of the space occupied and when the individual may use it.
Legal Help with Selling a Timeshare
To ensure that are few complications in selling, a lawyer’s hire helps through difficult problems. Additionally, if the reseller needs to keep other legal matters at a minimum, legal representation could mitigate any damage in these matters.
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer.