Buying timeshare

Millions of owners already enjoy timeshare holidays at resorts around the world – from large leisure complexes to quiet country cottages.

Timeshare is a flexible product with many options, and it is therefore important to decide what is right for you and your family. The major variables in price include the desirability of location, the week of the year that you own, and the size of the unit. Aside from the actual purchase price, annual costs such as, Management Fees, Membership Fees, and Exchanges Fees, should be taken into account. You will also need to consider flight and transfer costs.

If timeshare is bought anywhere in the European Economic Area (EEA), consumers have the following minimum rights:

• A minimum 10 day cooling off period in which to cancel the contract; in the UK this cooling off period is 14 days.
• Timeshare sellers cannot seek or take deposits prior to, or during, the cooling off period.
• The right to a brochure and a written contract setting out basic information on the timeshare property in the buyers own language.

There are a number of holiday products that are not timeshare and are not subject to the timeshare laws. Consequently consumers do NOT have the same protection and rights, these are:

• Holiday or vacation clubs www.oft.gov.uk
• Timeshare resale.
• Timeshare in floating vessels (e.g. narrow boats, pleasure boats and houseboats).
• Timeshare lasting less than three years.
  NB: OTE members who offer any of the above products do offer consumers the same minimum protection and rights as those given when buying Timeshare.

Sales & Marketing

If you are approached and invited to a timeshare presentation make absolutely sure it is timeshare.

Remember, there is legislation in place to protect the rights of Timeshare owners but there is NO SPECIFIC legislation that protects the rights of consumers who buy into a Holiday Club.

A tour of the resort, including the sales presentation, will normally last between 1.5 and 4 hours depending on your questions and what you want to see while you are there.

The tour is normally very informal and will typically involve a walk around the resort, viewing of promotional materials, information on the product and options available to you, and inspection of the accommodation.

If at any point during the presentation you do not feel comfortable for any reason or if you wish to stop the tour you should inform the sales representative so that he/she can answer any questions or take you back to the reception point.

Once you have agreed to purchase a contract will be prepared, this will include a disclosure document that informs you of your rights, and you will be asked to review these documents prior to signing the contract. It is normal practice for this stage to be conducted by someone who is not on the sales team.

From the day that you sign your contract you enter into a formal agreement that gives you a 10 – 14 day cooling off period (14 days in the UK). You may cancel your Timeshare agreement at any point, without penalty, during the cooling off period. However if you do not wish to buy simply do not sign the contract.

According to the European Timeshare Directive, it is paramount that you are informed of your right to a cooling off period and that the documents are arranged in your own language.

If after having returned home you still have unanswered questions, you should ring the resort directly before the end of your cooling off period.

For a trouble free buying experience simply remember the following things:

• Timeshare is not the same as owning a property, and is regarded as a long-term investment in holidays.
• Timeshare purchasers have rights that are protected by legislation.
• Always buy at a resort that you are happy to return to.
• If you are buying into a points system always ensure it is backed by real estate.
• If a deposit is permitted by the national law, ensure that you pay the deposit using either a VISA or MasterCard for added protection.
• Read all of the documentation provided carefully, and ensure that any verbal promises that were made to you are included in the purchase documentation.
• One of the advantages of timeshare is that you can join an exchange scheme. To get the best out of the exchange system see our exchange page.
• Owning a timeshare is intended to be fun - 1.5million Timeshare owners in Europe can’t be wrong