Buying a timeshare can be a complex decision that requires research and careful consideration. A lot of important aspects will drive the choice of an ownership to purchase, such as when, where and how often to travel; the size of your travel group; preferred amenities; and so much more.
To help buyers with their due diligence when purchasing a timeshare, we developed a “checklist” for all the questions buyers should research when considering a purchase. Whereas this list is by no means exhaustive, it should provide all of the basics that are important to consider.
Resort Family
Is the timeshare part of a developer network, and if so, can it be exchanged internally for other properties within that network? Properties that can be exchanged internally within a certain network, such as Vistana Signature Network’s mandatory properties like Westin Kierland, offer additional flexibility to travel to alternative locations using points.
Many of the name-brand points-based timeshare ownerships you will see listed on the resale market will allow the owner to use their points to book a wide selection of destinations within that resort network. Understanding how these points systems work, what resorts are part of each network, how many points it takes to book the resorts you wish to travel to, and other developer-specific rules & limitations will be a crucial deciding factors for selecting the perfect listing for your situation.
In the chart below, you can find information regarding the top 5 name-brand timeshare developers, including the number of resorts in their network and the average number of points needed to book a 2 bedroom villa.
| Marriott | Hilton | Vistana | Disney | Hyatt | |
|---|---|---|---|---|---|
| Points | |||||
| Weeks 1 | |||||
| Avg # of Points 2 | 4,150 | 11,200 | 148,000 | 395 | 16 |
| # of Resorts | 80+ | 60+ | 22+ | 16+ | 16+ |
| 1 Marriott offers the option to purchase a deeded week at a particular resort as well as a points-based option | |||||
| 2 Average number of points needed for 7 nights in a 2 bedroom villa | |||||
Exchange Company
Is the resort affiliated with an exchange company such as Interval International (II) or RCI? If yes, do maintenance dues cover the cost of the annual membership with the exchange company, or will the cost of the exchange company annual membership be in addition to annual dues?
| Marriott | Hilton | Vistana | Disney | Hyatt | |
|---|---|---|---|---|---|
| Exchange | II 1 | RCI 2 | II | II | II |
| Membership | Annual Abound club dues for points owners covers the cost of II membership, non-Abound-enrolled weeks owners pay annual II membership fees separately | Hilton’s annual club dues cover the cost of RCI membership for all owners | Abound annual club dues covers the cost of II membership for enrolled owners, non-Abound-enrolled owners pay annual II membership fees separately | DVC members pay annual II membership fees separately | Hyatt’s annual fees cover the cost of RCI membership for all owners |
| 1 Some deeded Marriott weeks also exchange with RCI | |||||
| 2 A small number of Hilton resorts also exchange with II | |||||
Season & Ownership Booking Windows
Is the ownership a fixed week? A floating week within a certain season (a selection of weeks throughout the calendar year)? Is it a points based ownership that allows the owner to book resorts outside of their home resort? If the ownership is not a fixed week, how early can a your vacation be reserved? For more on this important decision, read our article at: Choosing Your Ideal Timeshare: Fixed Week, Floating Week, or Points Options.
The chart below shows you the booking windows for the top name-brand developers, which determine how far in advance you can book vacations at your home resort, as well as other resorts within that developer’s resort network.
| Marriott | Hilton | Vistana | Disney | Hyatt | |
|---|---|---|---|---|---|
| Reservation Window 1 | 12 months 13 months2 |
Home: 12 months Any: 9 months |
Home: 12 months Any: 8 months |
Home: 11 months Any: 7 months |
Home: 12 months Any: 6 months |
| 1 How far in advance you can book your vacations | |||||
| 2 Available to points owners with higher membership levels, or weeks owners will multiple weeks booking consecutively or concurrently | |||||
Usage Rights
How often can the owner use the property? Timeshares are typically annual, biennial (even or odd year usage), and sometimes even triennial usage (every three years). Make sure you understand how often usage rights are guaranteed, and when the next use available will be. When purchasing an ownership on the resale market, the purchase agreement should detail the usage rights for the timeshare you are purchasing. By having this information clearly stated in a purchase agreement, the usage rights can be verified by a third party closing company to ensure the ownership being transferred matches what the buyer expects to purchase.
Maintenance Fees
How often are maintenance fees paid? Some resort bill monthly fees, others quarterly, others annually. For every-other-year (biennial) ownerships, some resorts bill fees annually by splitting and invoicing the fee in two 50% payments each year; while other developers bill the full fee in the year of usage only. Make sure you understand the frequency and timing, the current amount, and when the next maintenance fee is due. Purchase agreements should always specify when the next use and next maintenance fee responsibility is for the buyer.
If you’d like to learn more about some expert tips to navigate paying your maintenance fees like a pro, check out our article here: Maintenance Fees Do’s and Don’ts.
Special Assessments
It is important to know if the resort has any special assessment for renovations / refurbishments currently ongoing, how much the assessments are, and if the buyer is expected to become responsible for assessments once they take on the ownership. Many resort’s owners associations are required to keep a portion of maintenance fees for reserves that can help absorb unforeseen costs, but not all associations are created equally.
States can have differing laws regarding the minimum reserves for a resort’s association, and associations can choose to keep the state’s minimum requirements or exceed them. While the name-brand developers are incredibly diligent in maintaining reserves, and planning ahead for refurbishments, don’t be afraid to consult with a knowledgable professional regarding the financial position of the resort your are purchasing.
Closing Costs & Transfer Dees
What are the closing costs and transfer fees required to transfer the ownership, and who will pay these fees? It is customary for the buyer to incur the closing costs and transfer fees, and important to understand the financial commitment. Some resorts, like Hilton Grand Vacations, will charge an activation fee after the ownership transfer is completed. For more on understanding closing costs, see our recent article: Understanding Timeshare Resale Closing Costs: Buyer & Sellers.
Right of First Refusal
Many developers have a right of first refusal, which allows the timeshare developer the option to purchase the timeshare back from the owner before they sell it to a third party. In simple terms, it means the developer gets the first chance to buy it back at the same price offered by a prospective buyer. In this case, the buyer will not be able move forward with purchasing the property and they should receive a full refund of their deposit. It is wise to ensure that this is specified in the purchase agreement, should the developer have a right of first refusal, to protect the buyer’s deposit. To learn more, read our article at: Right of First Refusal: Everything Timeshare Buyers & Sellers Need To Know.
Buyer’s Right to Rescind a Purchase
Last but not least, buyers have legal rights to rescind a purchase, and they should receive clear instructions on how to do so, should they decide to exercise this option within the legal framework of the timelines allowed for doing so. Make sure you understand your rights and how to submit a purchase cancellation request.
In conclusion, purchasing a timeshare resale requires careful thought and some research. It’s crucial to select a reputable timeshare broker who can help you understand the the operational dynamics of each developer’s resort network. Understanding your exchange company, how its membership is paid for, and the extent of your usage rights can significantly impact your overall experience. Knowing in advance when to book your vacations, what your maintenance and closing costs will be, and how to navigate the right of first refusal are all critical aspects of this process. Finally, being aware of your right to rescind your purchase provides an extra layer of protection. By following this simple due diligence checklist, buyers on the resale market can become educated and empowered, which leads to higher long-term satisfaction with their purchase.
If you have any remaining questions regarding purchasing a timeshare on the resale market, feel free to contact us for a free consultation with one of our licensed Real Estate agents. Our team is happy to walk you through the process, and ensure you experience a smooth and rewarding timeshare resale buying journey
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