For those who have recently bought a timeshare, you may not know what the legal structure of your property is. What kind of property interest you own depends on the kind of timeshare property you’ve bought.
Timeshare properties are often legally structured as shared deeded ownership or as shared leased ownership. What is the difference between these two types of ownership?
What is shared deeded ownership of a timeshare?
When you have shared deeded ownership of a timeshare, it means each owner of the timeshare property owns a percentage of the real property. This percentage correlated to the amount of time you’ve purchased such as a one to two-week period.
You’ll receive a deed for your percentage of the timeshare unit. The deed will specify when you can use the timeshare property.
That said, shared deeded ownership is when many deeds are issued for each property. A timeshare with a condominium unit sold in one-week time slots would have up to 52 deeds. One deed would be issued to each partial owner of the timeshare property.
What is shared leased ownership?
Shared lease ownership is when the timeshare developer retains the deeded title of the property. Each timeshare unit owner will hold a leased interest in the property.
The lease agreement given to you will entitle you to use your timeshare unit every year for a specific week (or two-week period). In a shared leased ownership, your interest in the timeshare property will often expire after a given number of years. In some cases, your interest in the property will expire after your death.
It’s also important to note that a leased ownership restricts property transfers. This means you may not be able to transfer your timeshare ownership to a child or family member after you’ve passed away or if you attempt to donate the property.
Are you looking for timeshare attorneys in Florida?
If you regret buying a timeshare, you’re not alone. Approximately 85% of timeshare owners say they regret their purchase and up to 66% of timeshare owners who want to get out of their contracts say it’s because the maintenance fees are too high.
Fortunately, the law offices of Susan Budowski can help. For information on how to cancel your timeshare contract or to schedule a free consultation with our timeshare attorneys, contact the law offices of Susan Budowski today.