FAQ

Frequently Asked Questions About Timeshare Resale

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Below we have put together questions with answers that people are always asking. If you do not find the answers you are looking for please do not hesitate to contact one of our helpful and friendly agents today!

  • 1. How do we know you are legitimate company?

    Customers can visit My Florida License, and verify the current status of our company with the state of Florida and our individual real estate licenses.

  • 2. Why should I buy through you versus buying through Marriott, Disney or Hilton?

    We have over 20 years of timeshare experience with the biggest names in the timeshare industry. But

    most important, the savings are very significant when someone purchases in the resale market.

    Depending on the timeshare you purchase, customers could save up to 70 percent compared with the

    retail market.

  • 3. Will I receive the same benefits as an owner who purchases directly through the developer?

    Developers will always discourage a customer from purchasing in the resale market because it is lost revenue for their sales divisions. To prevent a customer from buying in the resale, most developers have removed their loyalty program when he/she purchases in the resale market. A few examples:

     

    A. When you purchase a legacy week in the resale market (floating or fixed week), you cannot turn your week in for hotel points. In most cases, when you purchase directly through Marriott, you can convert your timeshare into hotel points only every other year and normally the number of points you are given, gets you about four nights in a hotel room. Bottom line, you are giving up your two bedroom villa for a hotel room, you are staying less nights, and don’t forget that regardless whether you are keeping your two bedroom villa to stay in your resort or to trade it to go somewhere else versus converting your two bedroom villa for Marriott hotel points, you are still paying the same maintenance fees. Is it worth paying full retail price for someone to stay in a hotel room for a few nights every other year when the whole idea about purchasing a Marriott timeshare is to actually get away from staying in hotel rooms and start enjoying the luxuries of your own home away from home?

     

    B. Hyatt does the same thing as Marriott. The Gold Passport does not transfer in the resale

     

    market.

     

    C. Starwood’s Star Options program does transfer in the resale market depending on the resort

     

    you purchase.

     

    D. Wyndham loyalty program does not transfer in the resale market.

     

    E. Hilton’s loyalty program called Hilton Honors does transfer in the resale market.

     

    F. Disney does not have a loyalty program, however, when a customer purchases a membership in

     

    the resale market, you cannot convert your timeshare into hotel stays or cruises.

  • 4. How long is the process of purchasing through your company?

    Assuming that buyer and seller exercise due diligence by returning documents in a timely manner, an average closing takes 45 to 60 days.

  • 5. How am I guaranteed what I am purchasing?

    Part of the closing process, is to verify directly with the developers what the owner actually owns. For this process, we use title companies. Not only do they verify directly with the developer that the seller owns what they claim they own, but they also hold all funds in escrow (neutral account). They submit a form to the developer; they are responsible to confirm everything we need to know about the selling property such as the size of the villa, the season, the view, annual usage, availability for next year, status with their maintenance fees, etc. Once everything is confirmed and verified, the title company handles the closing process, the recording, and the transfer.

  • 6. What are the costs involved in buying or selling a timeshare?

    For a purchaser, generally apart from the purchase price, they are also responsible for closing costs. For an average timeshare, closing costs are approximately $400 to $600, but they do vary based on the property you purchase.

     

    If the purchaser wants occupancy the year they are purchasing the timeshare, the common courtesy is to reimburse the maintenance fees to the seller.

     

    The seller’s responsibility is any late fees, penalty charges or mortgage loan payments owed to thedeveloper, which generally those are deducted at closing off the proceeds.

  • 7. Are prices negotiable?

    As a buyer, a customer can present any offer. Our role, is to present it to the seller, which he/she will be able to accept it, decline it without a counter offer, or counter offer it.

  • 7. What is ROFR?

    All large developers have the right of first refusal. That means that once an offer has been accepted by the seller, the closing company must present the offer to the developer. Most developers have anywhere between two weeks to four weeks to decide whether to match the offer or wave it. If they match the offer, the buyer is removed from the transaction and the developer becomes the buyer. All terms and conditions of the contract remain the same. If they wave it, the transaction continues as normal.

  • 8. What is ROFR?

    All large developers have the right of first refusal. That means that once an offer has been accepted by the seller, the closing company must present the offer to the developer. Most developers have anywhere between two weeks to four weeks to decide whether to match the offer or wave it. If they match the offer, the buyer is removed from the transaction and the developer becomes the buyer. All terms  and conditions of the contract remain the same. If they wave it, the transaction continues as normal.

  • 9. Do developers exercise the ROFR often?

    Most developers exercise the ROFR. There aren’t exact guidelines to determine when they are going to intercept transactions. It is driven by the market and their shortage of inventory, but most important, if the accepted offer by the seller is too low compared to the rest of the resale market, there are very high probabilities they will exercise the ROFR. When the ROFR is exercised, the buyer does not lose the deposit. He/she can elect to keep it in escrow and instruct us to find another one or simply get reimbursed.

  • 10. If a developer exercises the ROFR, can I come back with a higher offer?

    The quick answer is no. Once the developer matches the buyer’s offer, it is final, the buyer is removed immediately from the transaction.

  • 11. Is financing available?

    We do not provide financing, all transactions are paid in full at closing.

  • 12. Do I have to use my timeshare every year?

    With most timeshares, you have two years to use your vacation. If by any chance, at the second year you are not able to vacation, you can deposit your week with RCI or Interval International and have another two years before you use it.

  • 13. If I don’t want to vacation, can I rent my week?

    Yes, you can rent your week. We can offer you our services to find a renter for you. Our commission is 20% of the rental proceeds or $500, whichever one is greater.

  • 14. Is buying a timeshare financially sound?

    Yes. Vacationing every year, or even every other year, and by comparing apples to apples, if a customer was to rent a week in a two bedroom villa in a Marriott, Hyatt, Hilton or Disney resort, typically the break-even point would occur within four to six vacations. After the customer breaks even, the only fee he/she is responsible for, is the maintenance fee, which is typically a fraction of the rental cost to cover a week of vacation in a two bedroom villa in a luxury resort.

  • 15. What is the difference between Deeded and RTU?

    Deeded means a customer owns the property it out right, in other words, forever. You can sell it, rent it or even will it. RTU or Right to Use properties, have a determined number of years of usage. Customers can sell it, rent it or will it up until the expiration date.

  • 16. How do I exchange with other resorts around the world?

    The attractive component of owning a timeshare is that a customer can exchange with thousands of other resorts around the globe. When a customer purchases a timeshare, he/she will be invited to join RCI (Resorts Condominium International) or II (Interval International). These two companies have partnered with thousands of resorts for customers to trade with each other. These companies are there to assist you with the trading. The trades can be handled over phone or you can do it yourself on the internet through their websites.

  • 17. What are maintenance fees?

    When a customer purchases a timeshares, he/she is responsible for the operational cost of the resort. The same as owning a home, there are electric bills, property taxes, maintenance of the property, refurbishment of the resort, insurance, etc. The amount of maintenance a customer pays is based on the resort they purchase.

  • 19. Why are prices so much lower in the resale market?

    The biggest expense for developers to sell their product to customers like you, is marketing. For every dollar a customer pays to buy a timeshare directly through a developer, 50 cents or more goes straight to marketing costs. In the resale market, we bypass the marketing costs altogether and pass on the savings to you.

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