# Help understanding how timeshares work



## Lonstar (Jul 28, 2011)

A person I work with bought a timeshare in January of this year and has asked me to help them figure out what they have and how to use it.  They gave me all of the paperwork they got when they bought it, and I'm trying to figure it all out, but it's a little overwhelming.

I know nothing about timeshares, the reason they asked me to look it over is because I do their taxes for them every year.  I'm not a CPA or a tax professional, I'm just someone who knows how to do taxes.

Another friend of mine who owns several timeshares (bought second hand) recommended that I read and post questions on this site, he said you guys had the best forum for timeshare information.  After spending some time reading through some posts, I agree.  I'm a member of several forums on different subjects, and I have to say you guys are top notch in offering info and advice, and very friendly to boot.

I'm going to give you the basic info on their deal in this post, and will gladly offer more as questions are asked.  Hopefully you guys can give me a quick education on how timeshares work and offer some advise on how they should proceed.  

With that said, here's the info and questions...

Sam and Sue (not real names of course), are a couple in their mid 20's.  They're engaged to be married next year, and have 2 children together.  They went to Williamsburg, VA in January of this year and bought a timeshare at The Colonies at Williamsburg.  Sam now realizes he paid too much for it and is feeling buyers remorse.  Sue just wants to use it so they can get their moneys worth.  It looks like the contract is in both of their names, but I know Sam paid the up front deposit and Sue is now paying the bulk of the monthly payment..but since Sam makes more he's covering what she can't afford each month.

The contract states that they have week 34 (the week before Labor Day) and that it's a 'Red' occupancy period.  It also says that the occupancy is bi-yearly on even numbered years beginning in 2012.  That much I (sort of) understand.

There's a "Pre-Acknowledgement" form that is signed by both of them that states that they have a 4 bedroom, 12 person unit that can be used or exchanged "separately or together with a maximum occupancy of 6 per level".  What does that mean, they have a bi-yearly for a 4 bed unit, but can have a 2 bed unit every year??

When Sue first told me about this and asked for my help, she said that they were told they have two weeks every year, one fixed on week 34 and one floating, and that they would get a 'bonus' (3rd) week every other year, but I can't find anything that states that in their paperwork.  Meaning, I don't see anything that states that they get two weeks a year, and I don't see anything about a 'bonus' week every other year. 

There's a 'Platinum Extended Stays' offering 3-4 night stays Sept - Mar for $200.  Is this just a bunch of crap to get more of their money in the off peak season?

There's more paperwork and more questions, but I'll leave it at this for now.  Any assistance and advice would be greatly appreciated.

Wondering what they paid?  I'll answer that question in a future reply


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## ampaholic (Jul 29, 2011)

Lonstar said:


> -snip-
> 
> There's a "Pre-Acknowledgement" form that is signed by both of them that states that they have a 4 bedroom, 12 person unit that can be used or exchanged "separately or together with a maximum occupancy of 6 per level".  What does that mean, they have a bi-yearly for a 4 bed unit, but can have a 2 bed unit every year??
> -snip-



I only take what I understand (I think) - it seems they bought an EEY (Every Even Year) 4 bedroom "lockoff". 

A "lockoff" can be used as a single unit or divided (locked off) into two units and the owners discretion.

So yes they can reserve the 4 bedrooms whole every EVEN year - either to use, to rent out, or to exchange.

--or--

They can reserve it locked off and use the two units as they want - such as use one for themselves and rent one or exchange one (or exchange both). 

To use one 2 bed on even years and one 2 bed on odd years - likely they would have to exchange one of their week 34 EEY 2 bedrooms for an odd year unit -that would bring in an exchange company and some fees.


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## theo (Jul 29, 2011)

*Puzzled...*



Lonstar said:


> A person I work with bought a timeshare in January of this year and has asked me to help them figure out what they have and how to use it....
> 
> Sam and Sue (not real names of course), are a couple in their mid 20's.



No disrespect or offense intended, but I just have to ask...

This couple knowingly, willfully purchased (...and apparently financed) this timeshare, so how or why is it somehow *your* (i.e., not *their*) problem or responsibility to figure out what they bought or how to use it?


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## Lonstar (Jul 29, 2011)

*ampaholic* - thanks for the explanation, I have better understanding now.  I forgot to mention that Sue told me that the unit has two levels, and that they had the option to use only one level (two bedrooms) for one week, and if they did that, they would get another week per year to use again.  Use two levels = one week a year, use one level = two weeks a year.  It seems however, that this in not the case.  

This is something I cannot find expressly stated in their paperwork.  Would/should something like this be spelled out in writing, or is it a normal, well known fact with timeshares and they don't bother to spell it out in the contract?



*theo* - they asked for my help, so I'm trying to help them, it's that simple.  I don't view it as a problem for me.

I'll try to put this nicely.  There are people of average or higher intelligence, and there are people that are a couple notches below average.  This couple is the latter.  They are very nice people, but some of the more complicated things in life are a little hard for them to comprehend.

They're also a bit naive.  They honestly thought they won a free trip to Williamsburg in a contest, which I guess technically they did, but they had no idea it was a pitch for a timeshare.  I haven't talked to Sue yet, but I'm willing to bet she has no idea that they have an EEY timeshare.  I believe she thinks they have what I said in my first post - 2 weeks a year and a bonus 3rd week every other year.

I know it's their own fault, and that they knowing and willfully signed the contract, but I think the salespeople recognized their ingenuous nature and took full advantage of it.


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## chalee94 (Jul 29, 2011)

Lonstar said:


> ...the unit has two levels, and that they had the option to use only one level (two bedrooms) for one week, and if they did that, they would get another week per year to use again.  Use two levels = one week a year, use one level = two weeks a year.  It seems however, that this in not the case.



if it's a 4BR lockoff, then they can use 1 2BR one year and deposit the other 2BR with an exchange company like RCI or II to trade for a week in the next year.  

as amp suggested, that means extra fees for exchange company membership ($70-100 per year) + trade fees ($150-200 per trade).

sometimes, the trading companies will offer bonus weeks if you deposit your week (if it is in demand), which could mean 2 extra weeks (or a total of 4 vacation weeks every 2 years) if both 2BRs got a bonus week.  that's not always the case, though.


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## Tia (Jul 29, 2011)

Sales people with say anything to get a sale very true, including misleading people. Then it comes down to what they signed and is in writing.


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## Ridewithme38 (Jul 29, 2011)

They didn't buy into any exchange company with the purchase of their contract...and honestly, i don't know what 'Platinum Extended Stays' is...or why its part of the contract

The nuts and the bolts of the deal is...With a Yearly MF of $*** + the mortgage fee they are paying $**

*They get 7 days(Week 34) Every Even Year(2012-2014-2016) in a 4br place*

There really is nothing more or nothing less to the contract they signed on with

If they decide to use one side(upstairs 2br's) and rent the other side(Downstairs 2br) to friends or family, or through Craigslist, TUG or Redweek...that is a seperate thing and most likely not included in the originial paperwork

If they decide to use an External exchange company(i believe it Interval International(II) for The Colonies), to trade either side of they 4br(upstairs or downstairs 2brs) or the whole 4br for a different place(II has places all over the world) thats a sperate thing and most likely not included in the original paperwork 

This kinda why i wouldn't recommend TSing to any of my friends...explaining to them how to use an Exchange company or how to rent out an unused week...it took me almost 2yrs to learn what i i know...i can't spend 2yrs teaching them


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## DaveNV (Jul 29, 2011)

At this point in things they're best off learning how to maximize their ownership, and how to wring every drop out of what they bought.  There is zero resale value on what they bought, so it's time for them to roll up their sleeves and make the most of it.

FYI:  There is an Ebay auction right now for this exact purchase they made.  It has zero bids at the moment, but a starting bid of $16.07: (Does anyone else think it's hilarious that a colonial period timeshare is selling for a 1607 bid?  Think founding dates in Williamsburg and Jamestown...  )   http://cgi.ebay.com/COLONIES-WILLIA...10721026587?pt=Timeshares&hash=item19c77cca1b

Purchase paperwork can easily get confusing.  For me, it'd be worth making a phone call to the resort with the owner contract number and ask them what the specific details are.  That way you'd know more exactly what is happening.  Timeshare salespeople lie through their teeth to make a sale, and it's easy for an overwhelmed buyer to mis-remember things, or hang onto enticing details that don't seem to make their way into the purchase contract.

The resort may have bonus time owners can use as they wish, when/if available.  That can translate into those extra use weeks Sue may be thinking about.  The resort may have sold them a unit in a section or program that has special privileges, or whatever.  It's worth it to find out the whole story.

Each resort is managed by and how that resort sees fit, and what is normal at one resort may not be normal at another.  Case in point:  You mention they bought Week 34.  I'd ask the resort if that week is a Fixed use week that can't be changed, or if that is listed for deeding purposes only, and does the week actually float for the owner to reserve at their discretion.  (I own timeshares whose deeds state the unit numbers and weeks I own, but both the reserved week number and unit I stay in are floating - I have never stayed in the units on my deeds or during the week the deed says I own.)

Good luck!

Dave


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## Free2Roam (Jul 29, 2011)

Lonstar said:


> I'll try to put this nicely.  There are people of average or higher intelligence, and there are people that are a couple notches below average.  This couple is the latter.  They are very nice people, but some of the more complicated things in life are a little hard for them to comprehend.



Very nicely put... most of us probably know people in that same situation.  Very kind of you to help them thru it.


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## vacationhopeful (Jul 29, 2011)

BMWguynw said:


> At this point in things they're best off learning how to maximize their ownership, and how to wring every drop out of what they bought.  There is zero resale value on what they bought, so it's time for them to roll up their sleeves and make the most of it.
> 
> ....Purchase paperwork can easily get confusing.  For me, it'd be worth making a phone call to the resort with the owner contract number and ask them what the specific details are.  That way you'd know more exactly what is happening.  Timeshare salespeople lie through their teeth to make a sale, and it's easy for an overwhelmed buyer to mis-remember things, or hang onto enticing details that don't seem to make their way into the purchase contract.
> 
> ...



Dave, Nice Job on the explaination.

OP, tell them NEVER to go to another meeting, update, free breakfast, free lunch, free tickets, welcome gift, owners meeting .... again. Never again. They are all sales presentations and they will end up in debt over their heads. Timeshares sales is the snake oil business of our generation - lots of flash, BS, smoke and mirrors for items which have NO RESALE value, but sold for 10s of thousands to the bewitched under their spell.

I hope they can afford the payments and the ongoing MFs.

And Welcome to TUG!


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## Lonstar (Jul 29, 2011)

After reading everyone's replies and sifting through the paperwork again, I'm gaining a better understanding of this.  Thank you all for the help.


*chalee94* said - "if it's a 4BR lockoff, then they can use 1 2BR one year and deposit the other 2BR with an exchange company like RCI or II to trade for a week in the next year". 

*Ridewithme38* said - "They didn't buy into any exchange company with the purchase of their contract...and honestly, i don't know what 'Platinum Extended Stays' is...or why its part of the contract"

The 'Platinum Extended Stays' is one of the sheets of paper that was in a separate envelope, and it states, in large letters, the offer for 'unlimited 3 and 4 night stays for $199 Sept - Mar', but I now realize it's really nothing.  I thought it was a clue to the additional weeks they thought they were getting, but I now I see it for what it is - nothing.  In the same envelope were two nifty looking certificates (they look like a diploma you'd frame and hang on a wall), one with Sam's name and one with Sue's, that say 'Platinum Card Membership Certificate' across the top.  They state that (your name here) has become a Colonies at Williamsburg property owner and that by being a member is entitled to "purchase additional days at today's prices" and "entry to all amenities" and blah blah blah.  I now realize they don't mean jack either.  But another form in this same envelope is a 'Pre-Acknowledgement' document, which they both signed, that states (I'm abbreviating and only stating the pertinent info):

1. (We) purchased a 'Commonwealth' unit with 4 bedrooms, 6 people per level.  Max occ. is 12 people.

2. (We) understand (we) own week 34.  To occupy any other week, (we) must exchange through II.

3. Developer has an agreement with II under which II provides, for a charge, its exchange and travel services.  Single year membership is $138.  Current exchange rates are $159 domestic and $174 international.

4.* I will receive a bonus week each year from II.  If I own an annual AB unit I will receive two bonus weeks each year.  I must make my reservation 45 days or less in advance of the desired travel dates.  This is a three year renewable program and requires the II membership to be current at all times.  Currently the redemption fee for the bonus certificate is $164 domestic and $199 international. *

I didn't abbreviate anything in #4, this is exactly what it states.  I think this is what made Sue think they have two weeks a year and a bonus week.  The key wording here is "if I own an *annual* AB unit".  They don't, they own a bi-annual unit.  It looks as though they were mislead by being told one thing, but then through some sort of wheeling and dealing, they ended up buying something different.  It looks like they did in fact buy into an exchange company (II) though.  There's paperwork, literature and magazines for an II Gold membership in the two inch thick packet of info Sue gave me, but I haven't digested it all yet.


*BMWguynw* said -  At this point in things they're best off learning how to maximize their ownership, and how to wring every drop out of what they bought. There is zero resale value on what they bought, so it's time for them to roll up their sleeves and make the most of it.

Purchase paperwork can easily get confusing. For me, it'd be worth making a phone call to the resort with the owner contract number and ask them what the specific details are. That way you'd know more exactly what is happening. Timeshare salespeople lie through their teeth to make a sale, and it's easy for an overwhelmed buyer to mis-remember things, or hang onto enticing details that don't seem to make their way into the purchase contract.

This is where I come in, they asked me to explain to them what they have and how it works.  But I doubt they can maximize their membership, I'll explain why later.

Sue has asked me to call their representative.  Sue has called her rep several times with questions, but every time she does, the conversation turns away from giving her answers and is steered to things that cost more money.  

I plan on calling the rep, but not until I'm better informed, and that's where you and the other members of TUG come in (to which I, Sue and Sam are very grateful). As you said, timeshares sales is the snake oil business of our generation - lots of flash, BS, smoke and mirrors.  

*FreeIn2010* said - Very nicely put... most of us probably know people in that same situation. Very kind of you to help them thru it.

Thank you for the kind words.  I was a little taken aback by theo's comment, and theo, I'm not offended, but to have the second post to my question be from someone saying they're puzzled as to why I'm doing this?  My first thought was here is someone with 2397 posts on this site, obviously someone who has helped others with their questions, asking me why I helping someone?  Quite ironic.


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## theo (Jul 30, 2011)

*Howzzat now?*



Lonstar said:


> I was a little taken aback by theo's comment, and theo, I'm not offended, but to have the second post to my question be from someone saying they're puzzled as to why I'm doing this?  My first thought was here is someone with 2397 posts on this site, obviously someone who has helped others with their questions, asking me why I helping someone?



You were / are certainly entitled to interpret my one reply to your inquiry however you may see fit, but I respectfully submit that you have completely missed the actual basis (or point) of my own "puzzlement".

Timeshare ownerships, systems and usage rules are many and widely varied and often complex. Believe it or not, I was indeed genuinely "puzzled" why a (first time) poster would be undertaking to start "from square one" to learn all about someone else's timeshare purchase and usage details. No more, no less, no inference, no sub-agenda. 

Your efforts may be purely altruistic. If so, I tip my cap to your kindness and benevolence. Absent your (...later) explanation of the circumstances, I was genuinely *puzzled* --- for which I offer *no* apology.


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