All About Timeshare Section 2

What are RCI and Interval International?

Resort Condominiums International (R.C.I.) and Interval International (I.I.) are the two largest competing Timeshare Exchange companies. These companies were designed to assist Timeshare owners in exchanging their property with other Timeshare owners in other destinations.

How do Timeshare Exchange programs work?

Timeshare Exchange Companies charge members various fees to belong to a program designed to take members weeks or points and exchange them for the destination designated by that owner. Members do not have to own at the same resort or even in the same country. These Timeshare Exchange programs were the catalyst to the Timeshare boom. By allowing owners more flexibility in where and when they can travel, the prospect of Owning Timeshare became far more appealing than having to vacation at the same Timeshare Resort, in
the same location, every year.

Do Timeshare purchases require a deed to be transferred to the purchaser?

No. In fact, many timeshare transactions will not include the transfer of a deeded piece of real estate. Many Timeshare companies offer to lease time to the consumer. These lease time can range anywhere from 5 to 75 years. While still considered a real estate transaction, a lease does not entitle the purchaser to actual ownership of the physical property. However, this does not preclude the purchaser of a leased property from all of the benefits a deeded owner receives. They are still able to vacation in the same comfort, quality, and style that a deeded owner can.

Who governs Timeshare regulations?

The governing body of Timeshare can vary from state to state, country to country. Usually, the same body that governs real estate governs Timeshare regulations as well. However, this is not always the case. Many states have not incorporated Timeshare into the regulatory process. Hence, laws will not be as restrictive over the material presented in the sales process. This lack of constraint and parameter as to what can be said, or implied, leaves the presentation open to interpretation. Consequently, the representative is able to “freestyle” or “puff” the features and value, potentially leaving the consumer with erroneous impressions of how Timeshare will benefit their family.

What are rescission rights and how do they work?

Rescission rights allow a purchaser to return the product they recently purchased and receive a refund. In Timeshare, the rescission period varies state to state. For example, Florida properties have a 10 day right of rescission, while Nevada properties are 5 days. Refunds are usually limited to the down payment made for the property. Document and processing fees are rarely returned to the prospective Timeshare purchaser.