Before, when going on a vacation, looking for a place to stay often leads to hotels, airbnbs and resorts. Now, another type of accommodation is considered by a lot of people and it has become very popular up to date. An option that offers a different kind of accommodation which can be beneficial to some people. And this is called timeshares, because of its unique type of ownership that also offers a different kind of experience.
Timeshare – The Definition and How It Works
Timeshares are vacation real estate properties with a different model of ownership. A timeshare is owned by multiple owners that purchased an allotment of usage which is typically measured in increments of one week. Timeshares are usually vacation type properties like resorts, camping grounds, luxury condos, etc.
Time-sharing is basically a kind of fractional ownership where a part-owner purchases the right to use or occupy the property over a specified period. In this case, it will be a span of one week. This type of ownership is usually applied to vacation properties in which owners only want occasional occupancy of the property.
The way timeshares work is that the buyers confer about the exclusive use of the vacation property annually. The exclusive annual occupancy for a specifically defined period is measured in an increment of one week. However, this condition is applied in three kinds of systems and all part-owners agree on which one.
- Fixed Week – In this case, all part owners will purchase the right to use the property exclusively for specified weeks annually. This allows the owners to plan an annual vacation at the same time yearly. But changing the fixed week will be extremely difficult since all the part-owners must agree.
- Floating Week – With this system, a part-owner will have the right to exclusively occupy the property for a week or weeks on a predefined specified period, it can even be throughout the year. Although this is a flexible way of applying the timeshare model of ownership, this arrangement is usually not available during peak seasons.
- Points System – Here, points are used to represent property ownership and the points are based on various factors. The common factors influencing the points include location, availability and the size of the property. The points are also used by the developers in facilitating exchange of timeshares within the resort or with other resorts.
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