FOcUSEd ON | Finance
MONEY MATTERS: TIMESHARES & VACATION PLANS (PART 3 OF SERIES)
Source: http://www.consumer.ftc.gov/articles/0073-timeshares-and-vacation-plans
programs that allow banking of prior-year points, advancing points, or even “renting” An exchange allows a timeshare or extra points to make up differences. vacation plan owner to trade units with another owner who has an equivalent unit Whether the exchange system works satisfactorily for owners is another issue Here’s how it works: A resort developer has to look into before buying. Keep in mind a relationship with an exchange company, that you will pay all fees and taxes in an which administers the service for owners exchange program whether you use your at the resort. Owners become members unit or someone else’s. of the exchange system when they buy their timeshare or vacation plan. At most resorts, the developer pays for each new exchange company, but members pay If you’re thinking of selling a timeshare, the exchange company directly after the FTC cautions you to question resellers that. — real estate brokers and agents who specialize in reselling timeshares. They To participate, a member must deposit may claim that the market in your area is a unit into the exchange company’s “hot” and that they’re overwhelmed with inventory of weeks available for exchange. buyer requests. Some may even say that When a member takes a week from they have buyers ready to purchase your the inventory, the exchange company timeshare, or promise to sell your timeshare charges a fee. In a points-based exchange system, If you want to sell your deeded timeshare, the interval is automatically put into the and a company approaches you offering to resell your timeshare, go into skeptic when the member joins. Point values mode: are assigned to units based on length of stay, location, unit size, and seasonality. Don’t agree to anything on the phone or Members who have enough points to online until you’ve had a chance to check secure the vacation accommodations out the reseller. Contact the state Attorney they want can reserve them on a space- General and local consumer protection available basis. Members who don’t have agencies in the state where the reseller is enough points may want to investigate