THE HONEST BROKER : TIMESHARING
Investing in a timeshare can be alluring for those Americans that take annual vacations and prefer to have the flexibility of going to the same place, or not, every year without the financial commitment of actually owning a vacation home. A typical time sharing plan divides a vacation condominium into 52 weeks or “shares”. Buyers may purchase one or more weeks of ownership of a condominium at a specific location. The price of that week depends upon the time of the year, the property’s amenities, the apartment or condo’s size (square footage; beds/baths), and the location within the building.
There are laws that govern the sale of timeshares, for instance, the Florida Real Estate Timeshare Act. This Act applies to all time-sharing plans within Florida and those that are sold outside of the state but marketed within the state of Florida. It also regulates the resale of timeshares.
The developer of the timeshare property must disclose pertinent facts about the property to each potential buyer within its contract. It must establish the timeshare’s duration, the amount the buyer owes, the form of ownership, and the ten-day cancellation period. Timeshare ownership is one of two types; interval or “right-to-use”. Interval ownership allows the buyer to receive a recordable deed and gives the buyer the right to sell or rent the property. Right-to-use time sharing is temporary, lasting from 40-99 years. After that, the property converts back to the developer.
When a buyer regrets having purchased a timeshare from a developer, there is “cancellation clause” within the contract that allows for the buyer to cancel the contract. The buyer is able to cancel without penalty within the initial 10 days of the contract by notifying the developer in writing of the intent to cancel. The notice of cancellation will be effective on the date it is sent to the developer at the developer’s address. I highly recommend that it be sent via registered mail requiring a signature to ensure that there is a paper trail.
Diane Lott, Broker
Paradise Found Realty, Inc. of Palm City
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