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The increasing regulation on timeshares is not a good sign of the industry’s integrity

By: giljo9

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Timeshare ownership of vacation or recreation condominium property is a popular choice for persons who wish to secure a long-term commitment to a particular location. It is very common in Hawaii, Colorado, Florida, and in other vacation spots in the US. Because there are so many states where there is a significant timeshare activity, the laws governing timeshares differ from state to state.

Timeshares are created when a developer purchases or builds one or more condominium type units and then completes the required legal steps to be allowed to sell week stays in these units. One or two weeks are the typical periods that may be purchased. Different states actually have different laws governing timeshares, some of them would consider a timeshare as a piece of real estate, some do not.

There are different types of timeshares; a deeded timeshare is where the buyer purchases a particular unit and a particular week in the year. This arrangement is usually called Fixed Time or Fixed Unit.

There is also something called non-deed timeshare, the timeshare owner purchases a lease license, or club membership to use the property for a specific amount of time each year for a stated number of years.

Because of the huge dissatisfaction from owners, and complaints on the reselling rate of timeshares, there is now a law that specifically requires buyers to be given a period of time during which they can legally change their mind about the purchase of a timeshare and during which they will forfeit no payments or deposits already made. The length of time varies from state to state, but the intention is clear: it gives people time to really think about committing to purchase a kind of property that is known to cause financial headaches to most people who buy it. For example, in Florida, the Florida Vacation Plan and Timeshare Act allows buyers ten calendar days of rescission from the date the buyer signs the purchase contract.

In nearly every U.S. state, and in most countries, the cooling off or rescission period cannot be waived. It is in fact illegal for this right or period to be waived. This does say a lot about the kind of industry timeshare is.

Over time it has been documented that the timeshare industry tends to shape up and improve industry services and practices every time a new law is enacted to control and regulate the industry. It does say a lot that the industry only seems to only move forward when there is regulation and government interference. This is inherently contrary to the free-market capitalism that the United States is built upon.

The timeshare industry is one that requires regulation. Regulating timeshares and its transactions are one of the best things that have happened to the industry. It has lead to an improvement to industry practices, leading to level of business ethics that somewhat resembles honesty.

If you need to travel, why not avoid timeshares entirely. Who wants to deal with an industry with practices so dubious that the government has historically made an effort to increase regulation on over time? Who needs constant fees? Who wants to be tied down and locked down to take a vacation to place where you’ve already been to before? Why repeat a vacation that you’ve already taken a year ago?

Article Source: http://depositarticles.com/

For more travel and timeshare related articles and news updates, please visit the Direct Transfers blog

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