It sounds like a good idea.
You buy into a property as part owner, which gives you an opportunity to travel to an exotic destination during your time period, and enjoy some time in the sun.
Unfortunately, many people buy into a time-share without knowing all that goes along with it.
Many companies use high-pressure tactics to convince people to buy, resulting in a lot of disappointment when a buyer realizes it isn’t all it’s cracked up to be.
Getting out of your time-share commitment can also be problematic depending on the contract you have signed.
You should know your rights and what is involved when getting into a time-share situation.
Under the Consumer Protection Act, when you buy a time-share or sign up with a vacation club, you have a right to a 10-day cooling-off period to cancel without any reason.
You may end the agreement within one year if you do not receive a written copy of the contract.
You may end the agreement within one year if the contract leaves out information required by the Act.
In addition to the rights and details that should be included in every contract, a contract for a time-share should include any additional fees for swapping locations, if allowed, all maintenance fees, a list of circumstances that may result in a change of maintenance or other fees, and how fees will be calculated.
Before you buy, you should get legal advice.
If you are buying in Ontario, consult an Ontario lawyer. If you are buying outside of Ontario, you should also consult a local lawyer in the location where you are buying, and the lawyer should not be associated with the business marketing the time-share.
Be wary of high-pressure sales tactics. Some companies tell potential buyers it is a ‘one-time only’ opportunity and pressure you to sign on the spot.
You should make sure the property actually exists and is in a popular vacation spot. This is especially important if you are buying with the plan of swapping your time share with other owners around the world.
Ask the right questions in case you have to sell the time-share. You should be aware if there are any laws affecting time-share resale if there is a resale market for the location, and if there are any other conditions like fees that you will have to pay to the time-share corporation.
When buying, ask questions about maintenance and other fees. Find out how much the maintenance fees are, how they are calculated, how old is the building, are you likely to face major repairs, and are you paying for amenities that you may not use?
Some people have had good experiences with time-share opportunities, however, others find too many challenges, especially if you purchase in a high-pressure sales situation.
Be informed, know your rights, and find out everything you can about a property before signing on the dotted line.
