when buying a timeshare ask the right questions...

reading threw this forum there seems to be a general feeling that if you are going to purchase a timeshare you want to ask the the right questions before you buy. And it seems there has been alot of (wish I new that before I purchase ) this timeshare. So who has a list of the right questions to ask? Ron

ronaldr86 has asked, quoted in pertinent part: >> So who has a list of the right questions to ask? << =============================================

The short answer is --- NOBODY!

In truth, there are FAR too many very different timeshare products and too many different questions which should precede any purchase (varying and depending on the type of timeshare product involved) for there to be any sort of "one size fits all list". Some (certainly not all) questions which might be on any such pre-purchase list might well include (but not be limited to):

Deeded ownership, or right to use (RTU)? If RTU, expiration date of the right to use?

Points? (if so, whose? How many? How often assigned? What are the specifics of "carry over" of unused points? (There are many different flavors and "currencies" of points out there...)

Is this a corporate "chain" purchase? (e.g. Hilton, Marriott, Wyndham, etc.). If so, what exactly are the terms, conditions and limitations regarding the use of purchased product within (and / or outside) this corporate system?

If resale of a "corporate" product (such as the above examples cited), what benefits available to those purchasing directly from the developer are NOT subsequently available to purchasers of the same product if bought on the resale market?

Fixed or floating week? If floating, what time period restrictions or "blackout periods" (if any) exist on reservations made by float owners at this particular resort?

Annual maintenance fee amount? Pattern of increases in said fees in each one of the several consecutive recent years?

Any current (or imminent) "special assessments"? Pattern of occurence of such special assessments in the past five years?

Any exisiting mortgages, liens or other encumbrances of any kind on this particular ownership, which need to be resolved prior to actual transfer of ownership?

Copy of the current recorded deed readily available?

Closing company to be used in a purchase / sale transaction? Who pays the closing costs?

Resort transfer fee imposed upon change of ownership? If yes, how much is the transfer fee?

The list goes on. Moral of the story; know how to swim BEFORE jumping into the timeshare waters...

ken1193 wrote:

ronaldr86 wrote:

reading through this forum there seems to be a general feeling that if you are going to purchase a timeshare you want to ask the the right questions before you buy. And it seems there has been a lot of (wish I new that before I purchased this timeshare). So who has a list of the right questions to ask? Ron

==============================================

Short answer is --- NOBODY!

In truth, there are FAR too many very different timeshare products and too many different questions which should precede any purchase (varying and depending on the type of timeshare product involved) for there to be any sort of "one size fits all list". Some (certainly not all) questions which might be on any such pre-purchase list might well include (but not be limited to):

Deeded ownership, or right to use (RTU)? If RTU, expiration date of the right to use?

Points? (if so, whose? How many? How often assigned? What are the specifics of "carry over" of unused points? (There are many different flavors and "currencies" of points out there...)

Corporate "chain" purchase? (e.g. Hilton, Marriott, Wyndham, etc.). If so, what exactly are the terms, conditions and limitations regarding the use of purchased product within (and / or outside) this corporate system?

If resale of a "corporate" product (such as the above examples cited), what benefits available to those purchasing directly from the developer are NOT subsequently available to purchasers of the same product if bought on the resale market?

Fixed or floating week? If floating, what time period restrictions or "blackout periods" (if any) exist on reservations made by float owners at this particular resort?

Annual maintenance fee amount? Pattern of increases in said fees in each one of the several consecutive recent years?

Any current (or imminent) "special assessments"? Pattern of occurence of such special assessments in the past five years?

Any exisiting mortgages, liens or other encumbrances of any kind on this particular ownership, which need to be resolved prior to actual transfer of ownership?

Copy of the current recorded deed readily available?

Closing company to be used in a purchase / sale transaction? Who pays the closing costs?

Resort transfer fee imposed upon change of ownership? If yes, how much is the transfer fee?

The list goes on. Moral of the story; know how to swim BEFORE jumping into the timeshare waters...

Its obivious you have swam these waters before. I thank you for a jump start

ronaldr86 wrote:

It's obvious you have swam these waters before. I thank you for a jump start

You're welcome. In the course of 25 years of timeshare ownership and use, as well as numerous experiences (good and bad) in buying and selling, and meeting lots of folks in the timeshare world over the years, I HOPE that I've learned a FEW things along the way. In some cases, they were painful lessons, so I'm glad to share some acquired knowledge in the hope that people can avoid SOME of the traps and pitfalls I've seen along the way.

The timeshare waters are deep, with tricky currents, sometimes murky. There are also some hungry sharks there, just waiting to take a hefty bite out of the hides (and wallets) of the uninformed.

CAVEAT EMPTOR! (Buyer Beware).

ken1193 wrote:

ronaldr86 wrote:

It's obvious you have swam these waters before. I thank you for a jump start

=============================================

You're welcome. In the course of 25 years of timeshare ownership and use, as well as numerous experiences (good and bad) in buying and selling, and meeting lots of folks in the timeshare world over the years, I HOPE that I've learned a FEW things along the way. In some cases, they were painful lessons, so I'm glad to share some acquired knowledge in the hope that people can avoid SOME of the traps and pitfalls I've seen along the way.

The timeshare waters are deep, with tricky currents, sometimes murky. There are also some hungry sharks there, just waiting to take a hefty bite out of the hides (and wallets) of the uninformed.

CAVEAT EMPTOR! (Buyer Beware).

Thanks for the info..we are young in this and was really taken advantage of...it is very inportant to read and get the knowledge about this Timeshare world if not you can get caught in the whales belly like we did. The representatives at a Village in Kissimmee, Florida..were some of these hungry sharks you mentioned above..no doubt the water park there was great but we were scammed into buying a 2 bedroom unit for almost $20k.. with a maintenance fee of $561...the contract consists of the truth...I am appealing to other..get knowledge before you go on these so called week end special-tours. Don't get caught in the whales belly.

I have seen your discussion and we are currently thinking of buying a re-sale product and your advice as to asking how owner benefits differ between a re-sale purchaser and a direct purchaser from the resort.

I also noted your advice to check that the deeded ownership is free from encumbrances before we purchase.

My questions are - who can you rely on to give you the honest answer to those questions?

The resort will want to promote direct purchase and will "say" these are the benefits as opposed to a re-sale purchase. Likewise the re-sale person may not disclose any or all encumbrances. How can you check this?

Once again any suggestions appreciated.

spephm asks in relevant part: >>My questions are - who can you rely on to give you the honest answer to those questions?<<

As a buyer, you should always engage and utilize the services of a professional closing company. The closing company will obtain an "estoppel letter" from the resort, indicating in writing the presence / absence of any associated debts. That's part of what you're paying them (about $300) for, along with the preparation and recording of a new deed and escrow handling of the funds involved in the transaction.

As far as resales vs. developer-direct sales, that's usually pretty straightforward --- resale is always a fraction of the cost and rarely with much (if any) meaningful loss of benefits. Marriott resales cannot be converted to banked points for other uses like airfare, as an example of a difference, but it's up to you to decide personally whether a benefit like that is actually worth paying (multiple times) more money for the product by buying it "corporate direct". To each his / her own... ================================================

Re: >> The resort will want to promote direct purchase and will "say" these are the benefits as opposed to a re-sale purchase.<<

"Say" what they will (and some will say virtually anything to make a sale), any differences are generally few in number and / or significance. If you can find and buy in the resale market a week which you want to use, where you want to use it, what can a developer or corporation possibly offer you that is meaningfully more than that? Access and use is (presumably) what you want, and the source is essentially irrelevant (except for the price difference)...

ken1193 wrote:

spephm asks in relevant part: >>My questions are - who can you rely on to give you the honest answer to those questions?<<

As a buyer, you should always engage and utilize the services of a professional closing company. The closing company will obtain an "estoppel letter" from the resort, indicating in writing the presence / absence of any associated debts. That's part of what you're paying them (about $300) for, along with the preparation and recording of a new deed and escrow handling of the funds involved in the transaction.

As far as resales vs. developer-direct sales, that's usually pretty straightforward --- resale is always a fraction of the cost and rarely with much (if any) meaningful loss of benefits. Marriott resales cannot be converted to banked points for other uses like airfare, as an example of a difference, but it's up to you to decide personally whether a benefit like that is actually worth paying (multiple times) more money for the product by buying it "corporate direct". To each his / her own... ================================================

Re: >> The resort will want to promote direct purchase and will "say" these are the benefits as opposed to a re-sale purchase.<<

"Say" what they will (and some will say virtually anything to make a sale), any differences are generally few in number and / or significance. If you can find and buy in the resale market a week which you want to use, where you want to use it, what can a developer or corporation possibly offer you that is meaningfully more than that? Access and use is (presumably) what you want, and the source is essentially irrelevant (except for the price difference)...

Thank you for your speedy and very helpful response. My next question is how do you find a reputable closing company? We are in negotiations with a buyer and I am presuming they will have their own closer and we will need our own in order to avoid conflict of interest.

Your help is appreciated.

spephm states / asks: >>Thank you for your speedy and very helpful response. My next question is how do you find a reputable closing company? We are in negotiations with a buyer and I am presuming they will have their own closer and we will need our own in order to avoid conflict of interest. Your help is appreciated.<< ===============================================

You're very welcome. As the seller, you DON'T actually need to engage or utilize a closing company at all. Only one closing company needs to be involved for the transaction and, unless you have some arrangement to the contrary with your buyer, it should be the buyers' responsibility to select (and pay) a closing company of their own choice. You will, as seller, be asked to provide a copy of the current deed to the closing company. If you don't have a copy, they can search county records (and maybe charge a small additional fee to do so) and find the recorded current deed based upon current owner name and the year of acquisition. You will be asked (required, actually) as seller to sign a "release" form, authorizing the resort to disclose to the buyers' closing company the status of your account there (any unpaid bills, maintenance fee payment status, exisiting liens or encumbrances, etc.).

I've had personal experience with several closing companies over the years. I recommend without hesitation either Timeshare Transfer or JRA Closing Services (for the record, I have no affiliation with either one, other than as a paying customer). I don't much care for Resort Closings, Inc., having seen evidence of them being both slow and insufficiently attentive to detail for my liking. I can't comment on any others since I have no other first hand personal experience --- and I don't engage in "hearsay".

You don't identify the state where your timeshare is actually located, but you should be advised in advance that many closing companies will NOT conduct closings in some states. Hawaii is one state where some closing companies just don't want to get involved. Also, be advised that a South Carolina timeshare will specifically require the involvement of a SC bar attorney. Most closing companies will indicate right on their web site the states in which they will or will not handle closings. It does NOT matter where either the seller or the buyer lives; the U.S. state in which the timeshare is physically located is the fact of interest for the closing company. I cannot offer informed input on timeshare closings when the facility is located outside of the USA, having no personal knowledge or experience in closings outside of the USA. I hope this helps you. Good luck.