What to expect during the presentation & Timeshare resort tour
1. If you are visiting a timeshare resort on an inspection trip or other type of promotion, it is likely that your accommodations will have been deeply discounted in exchange for you meeting with a resort sales representative sometime during your stay. If you are married, you will be expected to attend the presentation and resort tour with your spouse. The reason you must attend with your spouse is because 99.9% of the people who visit a timeshare resort on an inspection trip or other type of promotional program, without their spouse use that as their reason for not buying. They usually say things like "I have to check with my wife" or "My husband will be very upset if I don't talk this over with him." You get the picture. Our best advice is if you don't have any interest at all in learning about or buying a timeshare, then don't waste yours or the developer's time.
2. If you choose to visit a vacation timeshare at your own expense, then you don't have to worry about having your spouse with you. Most timeshare resorts will provide you with a courtesy presentation and tour of the resort.
3. The on site sales presentation & resort tour usually includes a continental breakfast or light snack if an afternoon presentation is scheduled. The average presentation lasts approximately 90 - minutes. It could go a little longer if you have a lot of questions or if you decide to purchase at the end of the presentation.
4. The presentation and timeshare resort tour is usually private with one family meeting with one sales representative at a time. This allows the sales representative the opportunity to personalize the presentation to your family's specific vacation interests and needs. Only under unusual circumstances such as a very busy holiday season or time of year, are group presentations and tours made.
5. During the presentation, the specific product features and benefits of the vacation timeshare you are visiting will be explained to you in great detail.
6. If you are a first time buyer, you might watch a 10-15 minute film that will give you an excellent over view of timeshare. The film highlights how the product works, how you can use the product and how the timeshare exchange system works.
7. You'll tour the timeshare resort and see all of its amenities and activities.
8. You'll get to see the furnished model villas that are being offered for sale.
9. At the completion of your presentation and resort tour, you will usually sit down with your resort sales representative and he/she will give you their timeshare pricing information and you will have an opportunity to become a timeshare owner. Some resorts will require the sales representative to have you speak to a manager before you leave.
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What to expect if you decide to become a Timeshare Owner
If you decide to join the ranks of the more than 5 million timeshare owners worldwide, you will be asked to complete a series of purchase related documents. These documents will vary slightly from resort to resort, state to state and even by what type of Timeshare you decide to purchase. However, the information provided below is being shared with you to give you a general idea of what documents you might expect to see if you decide to become a timeshare owner.
Credit Application
If you will be financing your purchase you will be required to fill out a standard credit application. This application will be similar to any other credit application that you have filled out where you are requesting credit to be extended to you.
Exchange Company Enrollment Form
Usually a Developer will enroll you in an Exchange Company. There are two major ones, Interval International and Resort Condominiums International.
Purchase Agreement
The purchase agreement spells out exactly what type of timeshare plan you are buying and the cost to buy it. It also outlines the responsibilities of both you and the resort developer.
RESPA Form - (Real Estate Settlement Procedures Act)
This is a Disclosure statement supplied by the resort. It includes...
- Good Faith Estimate of all costs associated with the purchase of your new vacation week
- Notice from the Developer
- Servicing Transfer Disclosure Statement
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Truth-In-Lending Disclosure Statement (REG Z Form)
This form is made in compliance with Federal Law and is used if the purchase of your timeshare is going to be financed. It spells out the following information:
- Name of Creditor
- Borrower Name(s)
- Annual Percentage Rate
- Finance Charge
- Amount Financed
- Total of Payments
- Total Sale Price
- Number of Payments
- Amount of Payments
- Date Monthly Payments Begin
- Late Charges
- Pre-Payment Policy
Settlement Statement (HUD FORM - U.S. Department of Housing and Urban Development)
This form spells out all of the costs associated with the closing of your purchase. Since the closing usually takes place the same day of the sale, the estimated closing costs and the actual closing costs will be one in the same.
Mortgage Agreement
If you finance your purchase, the mortgage agreement is the formal document that pledges your timeshare property to the creditor as security for payment of the debt. This document defines the remedies for the Developer if you fail to make the required mortgage payments. This document will be similar to one that would be used on a home mortgage. The remedies would include foreclosure on your deed, however this is not something the Developer would wish to do if it could be avoided. Foreclosures are long and costly the Developer would much prefer a satisfied owner continuing to make mortgage payments.
Promissory Note
If financing your purchase, this document lays out the terms and conditions of your promise to pay.
Buyers Acknowledgment Form
This form will vary slightly from resort to resort and looks like a checklist. It is used to make sure that you completely understand the timeshare purchase that you just made. It addresses the major circumstances of your purchase in order to eliminate any questions or misunderstandings after the purchase is completed.
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Sample Copy of Deed
If you are purchasing a deeded timeshare plan, you will most likely receive a sample copy of the deed since the deed won't be recorded at the County Courthouse until after the purchase and closing takes place. The time it takes to receive your deed will vary from developer to developer. Do not be concerned that you will not receive your deed after your timeshare purchase is completed since recording the deed is simply making the transaction a matter of public record. Expect to receive your deed anywhere from 3-6 months from the time of closing.
Receipt For Timeshare Plan Documents
This is the form/receipt you sign after you receive the official condominium documents from the developer. It is also known as the "Owners Book." You must get this from the developer at the time of purchase and closing. The condominium documents are the legal papers filed by the resort attorney when the resort developer registered the timeshare project with the state.
Cooling Off Period
Most states provide consumers with a 3 - 10 day cooling off period. The purchase agreement should clearly spell out the cancellation and refund period. This is one reason why you really don't have to worry about being pressured into buying a timeshare product. The last thing a developer wants to do is pressure someone into buying only to have him or her turn around and ask for a refund. Cancellations and refunds are added administrative costs that a resort developer will try very hard to avoid.
Final Note
The sales documents you complete when buying into a timeshare program are usually State or Federal approved documents so do not be intimidated or frightened by the purchase and closing process. The administrative process is very similar to what you experience when you purchase a home or any other piece of real estate.
After learning the facts about Timeshare you should ask yourself three important questions.
- Do I like what I have seen?
- Would I use the product?
- Can I afford it?
If the answer to these questions are yes and you feel comfortable and confident with the resort developer then you owe it to yourself to take a serious look at the benefits of becoming a Timeshare owner.
We hope this information has been helpful to you in your search for the timeshare program that is right for you.
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