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Can you make a vacation home into a timeshare??

stacibradley

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I am searching all over online to figure out if you can actually turn a vacation rental in St. George, UT to a timeshare, but have not been successful. Any thoughts on this question? I would love some direction as this seems like the best site online....thank you again!:confused:
 

T_R_Oglodyte

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I am searching all over online to figure out if you can actually turn a vacation rental in St. George, UT to a timeshare, but have not been successful. Any thoughts on this question? I would love some direction as this seems like the best site online....thank you again!:confused:

Certainly you can. There are many vacation homes that have been converted to fractional ownerships. Quarter and Tenth shares are relatively common. I periodically see classified real estate listings in which people are trying to sell their fractional interest in a vacations. If you inquire of real estate people in vacation areas you can probably find examples.

All you really need are the appropriate legal documents to create fractional ownership, complete any necessary filings, get any needed local land use or zoning permits, and find buyers of the interest. Then you need to create the management structure to operate the resort on behalf of the owners. That includes operating staff, housekeeping, maintenance, etc. You also need to set up a governing structure - how will the fractional owners make decisions about resort operations?

As you can tell, the biggest issues here are legal and contractual issues. What you need is help from a good attorney who has experience setting up fractional ownerships of vacation properties.

If you want to affiliate your new timeshare/fractional ownership with an exchange company you will need to find out from the exchange company what hoops you have to jump through to get them to recognize your property for exchanging purposes.
 

lprstn

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I 2nd that. Go to Realtors that specialize in Vacation homes purchase places like (Ocean City, MD/Outer Banks, NC etc have these ownerships) and find realtors selling these to see what they can do for you.
 

Steve

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Make sure this is allowed before spending too much

If your vacation home is part of a Planned Unit Development (PUD) or condo association, you need to check your CC & Rs. It's quite likely that turning a whole ownership vacation home into a fractional or timeshare ownership structure is prohibited. Obviously, if you hire a competent attorney, he or she can check this for you. But I would want to research this before I spent much money on the process.

Steve
 

T_R_Oglodyte

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If your vacation home is part of a Planned Unit Development (PUD) or condo association, you need to check your CC & Rs. It's quite likely that turning a whole ownership vacation home into a fractional or timeshare ownership structure is prohibited. Obviously, if you hire a competent attorney, he or she can check this for you. But I would want to research this before I spent much money on the process.

Steve

Good point. I forgot about that one.
 

Floridaski

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South Florida, Summit County Colorado.
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Hyatt
Check HOA docs

We recently purchased a condo in Keystone, Colorado. Several of the condos we looked at, the owners were willing to sell partial interest in their units. They all seemed to be willing to split it up between 10 to 50 percent.

We ended up just purchasing a unit, in our HOA docs I checked and we are in a specific Keystone Association development that DOES NOT allow fractional ownership in units. Not a big deal for us, you could have several owners in an informal agreement - but not a true fractional ownership situation. It will more then likely spell this out in your HOA docs if you are in possession of the documents.
 

BocaBum99

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It's not only HOA rules. There are state laws that govern timeshares in some states as well.

You DON'T want to turn a single condo into a timeshare. It's not worth it. You may end up having to register as a developer with the state. The overhead will kill you. Especially the cost of preparing your public offering statement.

You are better off with a multi year lease for specific weeks to your renters instead of changing ownership structure of your condo.

In addition, you can offer vacation home intervals in exchange for timeshare units if you work with an exchange company that supports such exchanges.
 

Floridaski

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May not be worth it - but they are doing it!

I agree that I do not think it would be worth turning a single condo into a fractional type of ownership. It would be such a hassle, but we looked at least 4 condo units in Colorado that the owners were willing to sell less then a full interest.

It did not make much sense to me, but it was several real estate agents listings (not just a single agent doing it) and it was in more then one building. So, I can say from experience that they are doing it in Colorado - not sure about Utah. But, it is becoming popular in Summit County, Colorado.
 

Garnet

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California
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Marbrisa 2,31 MNCV 52, MSR 52, MDSV2, FSA
Would points make it easier, or harder??? for future?

Personally, I only know weeks-love them-work great for me. And, I associate weeks with deeds...

However, with just one condo-in the event that one owner has difficulties and doesn't pay mf's, or whatever disputes, does a points system make more sense? Or weeks system w/rights and no fractional deeds? Would that make it easier to make whole again? Some older ts's are great-they almost always will be due to prime location---but, I have read posts that have suggested that it may make sense for newer developments to have a clause about continuity after so many years. If after, say, 10 years majority voters do not want to continue as a ts, then property is sold and proceeds go to owners in whatever %. Or, right of first refusal added in-whatever.
 
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