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What Exactly Is A Time Share Resale

So what is time share resale really all about? The following report includes some fascinating information about time share resale--info you can use, not just the old stuff they used to tell you.


The concept or idea of a time share was first recognized somewhere in Europe during the 1960's. A ski property developer in the French Alps have found a way to increase the revenue from his ski resort by offering ownership of the hotel to his patrons or guests, and not just rent it. He thought that if he increased the occupancy of his hotel, he could experience revenue gain.

The ownership of the hotel would cover a week's time every year. The patrons were happy with the offer and not long afterwards, the other resorts and hotels followed suit.

Contract Types of Time Share

The deeded weeks of time share are contracts of real property that is also called time share interval. This is actually indicated at the contract in terms of years, but, the years are stretched into weeks every year so other owners of time shares can have a vacation at the resort.

There are different kinds of contracts available for time shares which are depended on the choice of the owner:

1. The Deeded contract

In this particular type of time share contract, the use of the hotel or resort is cut into a week's time. The weekly increments are provided as a fraction of the ownership. These are recognized real properties that are given to patrons for their use.

Patrons who choose to acquire the deed type of contracts have a number of options to choose from:

a. The Use of the Time Share Period

The time share can be used by the owner for a vacation. A week's vacation every year would be possible in a resort of choice of the owner.

b. Rental of the Time Share Period

Owners of the deeded contract have an option for a time share resale or rental. Owners have an option to post the time share on the Internet. Time share resale and rental is very much available at various websites on the Internet.

c. A Gift Out of the Time Share

Owners of the deeded contract can also choose to give the time share as a gift. Instead of time share resale or rental, the time share can be used as a gift to improve closeness to families and close relatives.

d. Internal Exchange of Time Share

Owners of these deeds have an option to exchange their time shares with other deeds under the resort group. Purchasers of the deeds usually think of time share resale or rental because of the redundancy of the location of the vacation resort.

This specific method of internally exchanging time shares within the resort group had an effect to the status of time share resale and rental. After the merging of various resorts into one umbrella group, purchasers of the deeds have found a way to avoid the strategy of time share resale then buying new time shares.

This reveals that purchasers of time shares does not really want to opt for time share resale or rental. Boredom had a lot to do with it. Every year that purchasers of deeds go into vacation at the same resort, they become bored and desires for other time shares.

e. External Exchange of Time Share

With about 5,000 time share resorts available worldwide. It was not long that the time share industry operates globally by making the time shares available to every prospective client.

The usual number of time share resale or rental continued its decrease. But due to this new strategy, the time share industry became more fluid. It became more flexible that an annual sale of 9 billion dollars was produced by the industry.

2. Right to use Contracts

Another kind of time share contract is the right to use contract. The buyer of the time share is granted the right to use the property but with limitations. The contract has stipulations that would serve as guides to the owner.

The right to use contract also has a termination date wherein all rights is given back to the developer.

Right to use contracts are usually used by Vacation Clubs for their members. Vacation Clubs are organizations that invested on time shares for the use of top members.

The main difference between the deeded and right to use contracts is that owners of right to use contracts have limited authority over the real property. Time share resale or rental is not possible unless until the termination date of the contract.

At some point, however, the contract terminates and all rights are subsequently returned to the property developer. Simply said, the purchaser of the time share can only use the resort within a specified timeline. The contract simply grants the right to the purchaser for usage and the purchaser, therefore, has limitations with regards to the time share.

Time share resales are therefore not possible with this kind of contract since the purchaser is not given full authority over the resort.

Also, this kind of contract is usually observed by countries with certain limits on ownership of foreign properties. In countries such as Mexico, they develop time share resorts but offer them through a right to use contract only and not deeded contracts. In these contracts, time share resales are not possible because purchasers of time shares don't actually own the time share deeds and therefore have no right to do what they want with the properties.

The Use of the Right to Use Contracts in Vacation Clubs

What are Vacation Clubs? These are the organizations that may have opted to invest on time shares. They may own time share deeds at various resorts worldwide.

These Vacation Clubs have the option to sell their time share units to club members either via a deeded or right to use contract. This action is also called time share resales because the Vacation Club is merely reselling what they already bought from the time share resort.

An example of a Vacation Club is the Disney vacation Club. Club members who bought time share resales may reserve vacation time at the owned resort properties of the Vacation Club.