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What is Vacation Ownership? Vacation Ownership "Timesharing" is the right to use specific weeks of a resort during a specific time period. Simply put, it is the pre-purchase of future vacation weeks. Timeshares are more deluxe than simple hotel rooms. Condominium-style units usually feature fully-furnished kitchens, generous living areas, and ample sleeping options for family or friends. Ownership of a timeshare is very similar to ownership of a condominium except that your rights are limited to a certain week (or weeks, if you purchase multiple intervals) during the year. The form of ownership can be deeded, leased or licensed. The license is somewhat different, in that it is most commonly a membership in a club. Providing you are a member in good standing, you have the right to use the club and all its amenities. Be sure to read and understand all the terms and conditions of your club membership before you make the decision to buy. Most vacation ownerships consist of either a deeded interest or a leased interest for a specific number of years. A deeded interest is owned outright forever. It is an absolute right that can be sold, leased, or even willed to your heirs. The less common leased interest is much like an apartment lease except right to use it is restricted to a specific week during the year. Upon the expiration of the lease term your right to use it will generally terminate and return to the resort. With a leased interest you should know the terms and conditions of the lease prior to making the decision to buy. The time of your use can be either Fixed or Floating. Fixed time is a specific week during the year usually defined by a number. Generally the week will begin on a Friday, Saturday or Sunday and is given a number starting with the first week in January and continuing through the end of December. (Example - week 14 might be April 7 through April 13.) Floating time means you have the right to select any available week within a certain season of the year. Therefore, if you own a summer season week you could pick any week that falls within the defined summer months. However, competition between existing owners for prime weeks in very desirable locations can impact availability. It is important to find which type of use best fits your specific travel needs. Each resort is different and offers various benefits to its owners. Many resorts give special reduced rental rates for extra nights or use of other resorts that are owned by the developer. This can add to your flexibility and provide substantial savings on vacation costs. Also, consider how and where you normally vacation. This is very important in making your decision about where you should buy and what you will have to trade. We welcome your comments and appreciate your feedback. The History of Vacation Ownership The vacation ownership (timesharing) industry can be traced back to its European origin in the 1960s. Superdevoluy, a ski resort in the French Alps, is the first known vacation ownership program in the world. The ownership of individual weeks guaranteed reservations for those who wanted to ski the area every year. It was an immediate success. By the 1970s, some faltering condominium projects on St. Thomas and in Fort Lauderdale and Puerto Rico were converted over to vacation ownership. Thereafter, timesharing became an increasingly popular vacation alternative. Once the United States embraced the concept of vacation ownership, it began to gain wide acceptance worldwide. Sales jumped to over 50 million by the mid- 1970s and have climbed to 6 billion annually today. Vacation ownership has enjoyed substantial growth over the years with approximately 5 million timeshares sold since 1980. Currently, there are over 5,000 vacation ownership resorts in 90 countries around the world. Exchanging a vacation ownership week in one resort for that of another resort was introduced in 1974 and brought new elements of variety and flexibility to the vacation experience. Although there are many exchange companies available that provide excellent service, the two major players are Resort Condominiums International (RCI), which has approximately 3,500 member resorts, and Interval International (II) with approximately 1,800 member resorts. Combined, these two companies provided over 1,600,000 exchanges last year. During a 30-year span, the industry has grown from small (15-20 unit) hotel conversions to the high-quality condominium resorts of today. The evolution of the industry from scattered entrepreneurs to well managed professional development companies has brought with it a noticeable change for the better. Definitive leaders have emerged and created standards and ethics for management, marketing and sales practices. One such organization is the American Resort Development Association (ARDA) whose members are required to comply with an established "Code of Ethics." The recent entrance into the marketplace by major hospitality chains such as Disney, Hilton, Ramada, and Marriott has greatly enhanced the quality and image of the industry. Vacation ownership resorts today are luxurious, have a wide array of amenities, and are well located. With the advent of these stronger and more professional development and management companies, and with the weeding-out the less desirable developers and marketers, the industry is now experiencing a very positive public image. One of the industry's leading analysts (Ragatz and Associates) concluded that the majority of timeshare owners are pleased with their purchase and, in fact, many now own multiple weeks. The future of vacation ownership is very bright and has tremendous potential. How to Buy a Vacation Ownership Interest Is Buying a Timeshare Right for You? Looking across the vacation spectrum, we find those who enjoy returning each year to a familiar spot as well as those who look to visit a new destination every year. Many fall somewhere in between. No matter where you are on the spectrum, timesharing can meet your travel desires. When you buy a timeshare, you are making a commitment--to yourself. This commitment involves your desire to vacation every year.

While you often may choose to go to the same resort, you can also use an exchange network to go elsewhere when the mood strikes. Certain features may be extraneous if your only purpose is to use the resort for your own enjoyment. If you plan to trade your interval, however, for other timeshares throughout the world, a resort unit with more features will fetch a better trade, or a higher price, should you decide to sell the interval down the road. Keep in mind that you do get what you pay for. Although there are bargains out there to be found, this is still an emerging market. As a prospective buyer, you must also ask yourself, "What are my vacation criteria?" Some primary considerations are family, airfare, recreation, meals, etc. "Do I want to guarantee a certain week every year? Can I only travel when the kids are out of school? " Find a resort that fits your vacation style. The Dollar Value Consideration Above all else, take into account the ever-present effect of inflation. Since the 1950s, the travel industry has noticed an approximate 5% annual increase in dollars spent on vacations. With the acquisition of a timeshare unit, you can start to curtail those costs. An annual maintenance fee of $250 to $450 ensures a week of vacation that has a fixed accommodation price per visit. I'm Ready to Buy a Timeshare After all the initial considerations and deciding to purchase, it is time to start looking for a resort that fits your criteria. To start narrowing down your resort choices, take a look at our online listings or at a timeshare catalogue. Everyone who is a member of an exchange organization gets a catalogue each year. It holds up to 3,500 developments throughout the world. Unfortunately these catalogues are not available in your local library. You must borrow one from someone who is already a timeshare owner. Our ResortBase.com index of listings, however, is always available for review. Let's say you've gotten to the point where you have two or three really attractive resorts in mind. They all have the features you're looking for, they are in your price range and you can see yourself committing at least 10 years of vacationing there. If at all possible, visit the sites. Start getting some feedback from unit owners and other sources; see what they say about the resort and the price you've been quoted. If your chosen site is still under development, there are sure to be on-site sales people who will enthusiastically give you a one- to two-hour tour of the whole facility. Be aware! They are there to give you a thorough sales pitch. If you have low sales resistance, it may be better for you to look around on your own and ask questions on your own terms. Be sure and pick up all available literature and to get all terms and conditions before finalizing a sale or rental. The Cost of Ownership When comparing the cost of a timeshare to that of a condominium, it is misleading to see that the condo costs thousands less than the timeshare. You'll find that timeshares sold in off-peak seasons are much less costly and that the condos often are developed on land of inferior value. Condos are usually located in a residential surrounding while a timeshare resort may be nestled in a forested valley or along a private beach. Where would you rather be? Check to see if the resorts that interest you have resale programs, instead of purchasing directly from the developer. This is the best route for the thrift-minded buyer who can purchase a choice unit with discounts of up to half of a developer's asking price. The third way to buy is through a private purchase. Any of these methods deal with the underlying factors of interest on your original purchase price and with the loss of capital after the purchase through a lower resale price. Two pointers when dealing with agents: first, they are agents of the vendor (a resort or owner) and are obligated to maximize the vendor's return of investment. Second, never be afraid to submit a lower asking price than what the agent recommends. The seller may agree to the lower price anyway. In some circumstances, your resort of choice maybe so new that there are no resale units yet. It is possible that the developer's asking price is still within your budget. In that case, go for it! It is within your right to submit a lower bid for a new unit to the developer. They may accept as well. As for the private purchase, although going through the process of contact and final negotiations may be much more informal, you must still deal with all the problems of legally "closing" a sale. We recommend using a qualified resale agent or attorney who can expedite the whole affair. Other Costs After a deal is made, the buyer incurs certain "closing costs" ($300 to $500 for escrow, title, insurance and recording fees). These are not included in the selling price and are a one-time expenditure for the buyer. In addition to the resort's annual maintenance fee, also figure on about $60 a year for membership with an exchange company, and $90 to $125 for each exchange you do, depending whether you trade a domestic or international timeshare. Good luck in finding just the right vacation ownership! Exchanging Your Vacation Ownership Now that you have become the owner of a vacation interval you can start enjoying the use of it. You may find that using your home resort is very convenient but don't forget about the endless opportunities of the exchange system. Chances are, your resort is affiliated with one or maybe two exchange companies. You can become a member of your home resort exchange company or use any of the another independent exchange companies which may provide special services to meet your travel needs. Either way, exchanging is one of the major reasons many people purchase a timeshare

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