There are different types of vocational ownership products available on market today which can be divided into three main categories:
- Traditional Timeshare Ownership
- Fractional Ownership
- Point- based Ownership
Traditional Timeshare Ownership refers to purchase of an interval of usage at a single resort. Ownership is usually tied up to a particular unit or unit type (one, two or three bedroom) and falls within a set week or within a season (a specific time of year or range of weeks when the owners can use his/ her timeshare).
Fractional Ownership refers to purchase of much large increment of time (usually a set block of week) and is good for travellers who are able to go on vacation for more than one or two weeks a year. Some top Brands such as Ritz- Carlton offers Fractional ownership. Fractional properties tend to be even more luxurious than traditional timeshares.
Point-based Ownership (also often called Vocational Club membership) refers to a system in which owners are allotted a specific number of points per year which can be exchanged for accommodation at a variety of in-network resorts. Points function much like traditional timeshares in that they often tied to 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 either be:
Fee-simple refers to a deeded purchase in which you own the timeshare perpetually.
In this system you purchase an actual deeded interest in real estate, which is recorded with the land court or other proper authorities and for which you receive a title in perpetuity.
Right-to-use refers to a lease-like agreement in which your ownership expires after a set number of years.
In this system you purchase the right to use a particular unit or unit size each year, but you do not have an ownership interest in the real estate. Traditionally, your right to use that property will expire after a stated number of years, and the property will revert to the developer or the owner of the leasehold property. Legal ownership is typically vested in a trust company. This is the prevailing type of timeshare ownership in the UK and Mexico and many other countries outside of the USA.
FIXED AND FLEXI WEEKS
With timeshare, you own a portion of time within years. There are two common methods for ownership of time:-
- Fixed weeks
- Flexi weeks
In fixed weeks, you buy a timeshare for specific week/weeks during a year. This is the most straight forward method, since you can deposit the timeshare directly or the one, you find yourself.
Under flexi weeks, you purchase the right to a certain block during the week. But others also have right of those weeks and you might have to negotiate for the availability.
Some timeshare programs have further expanded their offering with multiple locations, within the same timeshare organization. The obvious advantage of such an arrangement is the additional flexibility to visit others timeshare in other location, which belong within the group. Some assign you a ‘home resort’ with the right to ‘internal exchange’ for other resorts, while others are totally open, depending on your reservation request.
MAINTENANCE AND FEES
The maintenance fee is an annual charge that goes toward the upkeep of your timeshare. Your maintenance fee usually covers property taxes, insurance, utilities, cable, telephone and all property upkeep, such as furniture, carpet ant the resort’s common facilities. The resort’s Homeowners Association usually decides upon the fee.
A transfer fee is what resorts charge to transfer the ownership from one party to another. The fee applies directly to resale timeshares. Transfer fee are determined by the resort and vary.
As in all deeded properties, the recording fees are the nominal costs associated with the country from which the deed is being drawn. It is the country to which the timeshare resort is located.
If a resort’s maintenance fee does not have a built in reserve fund for replacement and or major repairs, the timeshare homeowners association may reserve the right to charge a special assessment in the event improvements or repairs are required.
Split in time share
Time share is an ownership of a fixed number of days every year. As an example it may be 2 weeks per year for next 10 years. Some companies may allow its members to split this time to twice a year or thrice a year vacations. It is known as split and its done with prior intimation to the time share company. Some companies may also allow to club the time share of two years again with prior intimation.