Timeshare
Advice
What is Timeshare
Timeshare means buying the right to spend a set period in a holiday property each year for three years or longer. Most timeshare resorts are linked to an exchange organisation that offers to arrange exchanges with owners in other resorts, normally for a fee.
Many people have bought timeshares and have enjoyed using them. However, timeshare touts operate in some resorts. DTI receives many distressing letters from people whom touts have pressured into buying timeshares they do not want and cannot afford.
Become a satisfied timeshare owner by all means, but don't become a victim.
If someone tries to sell you a timeshare.…
Think:
Do you want to take this sort of holiday every year?
Is it good value for money? Remember that when you buy a timeshare, you will still have to pay the costs of flights to and fro, food etc.
Timeshare is not an investment. Generally, the resale value of a timeshare is far less than the price you have paid for it when new. If the seller offers you a "money back guarantee", check the small print carefully.
Shop around. Don't take the first timeshare someone tries to sell you. Consider different resorts in different areas, look in newspapers and magazines, contact resale agencies and compare prices.
Find out if the seller is a member of The Organisation for Timeshare in Europe (OTE) a trade association which represents many British timeshare developers and marketing companies and has a code of practice.
Know your legal rights.
The "buy-sell con". If you already have a timeshare, a timeshare seller may try to convince you to buy a better one on the promise that he or she will sell your existing timeshare to pay for it. Under the "buy-sell con" this sale never materialises and you will be left with the expenses of both. Remember that the second-hand value of most timeshares is far less than the price when new.
Timeshare presentations
Some companies sell timeshare by getting people to go to sales presentations. They may offer gifts or free holidays to persuade you to attend. They may suggest you have won a competition and say you have to go somewhere to get the prize. Only after you have arrived do you find out that they are trying to sell you a timeshare.
If you know the sales team are selling timeshare and you do not want one, you could unnecessarily give yourself a hard time if you go to the presentation just to get the free gift. Once the sales team get hold of you, they will not give up easily. They are more experienced in persuading people to buy timeshare than you are in resisting a hard sell and they may keep you for hours.
If you find you have been tricked into going to a timeshare presentation, and you are not interested in buying, walk out. Ignore any claims that you are missing the chance to win something valuable.
If you accept a lift to a presentation, you may find it difficult to get back to your hotel when you wish to leave. It is safest to refuse.
If you attend a presentation, do not take credit cards, a cheque book, or much money with you. Never use your credit card as identification. A tout could put you under heavy pressure to use it to pay a deposit. Never let a salesperson take you to your hotel to get money or credit cards.
Ask for a brochure - under the Timeshare Directive, you have a right to certain basic information, listed in Section 2 of this document, whether or not you buy.
Pay nothing at the presentation, even if you agree to buy. A reputable company will not ask you to do so since the Timeshare Directive forbids it.
Be careful about accepting drinks which could affect your judgement.
No matter how unpleasant the sales team make it for you to leave a sales presentation, it can't be as bad as signing a contract you don't want and can't afford.
Remember that gifts that appear to be valuable (eg free holidays) may well have hidden extra charges.
Insist on full details in writing of what is being offered. A responsible developer will have no difficulty in providing a brochure giving full details of the resort and the apartment or house concerned. (See Section 2 for a list of the information to which you are legally entitled).
Consider whether you can afford it. Remember, you are unlikely to get your money back if you sell, so do not consider giving security in payment, such as remortgaging your home.
Satisfy yourself on maintenance charges. Low initial maintenance charges may be a sales inducement, subsidised by the developer. These may increase in the future. Check what is planned, what the charges include, and who will decide the increases. Will you have a say in how the resort is managed?
If you want to exchange, check that you understand the rules of the exchange and are happy with them. Also check that the exchange organisation has access to resorts you want to use. Remember that most resort prices are in three seasonal bands (high, medium and low). The band you buy in may affect your ability to exchange: you cannot expect to buy in the low band and then exchange into the high band.
Get everything in writing.
Before you commit yourself
Take your time and think. Read the contract carefully and, if you have any doubt, take independent advice about your legal rights.
Don't be rushed. Timeshare sales staff may put you under pressure to sign immediately on the promise of a discount. Don't sign anything until you have read it carefully and talked it over with people you trust.
Never sign anything to get away from the sales team. It will cost you more trouble to get out of a contract.
© Crown copyright 2004