How do I buy a timeshare smart?

Ask the Timeshare Crusader / November, 2010

I am interested in buying a timeshare, but want to be sure I buy smart. I've been doing my own research on the Internet but could really use the advice of a professional.

Much like buying a house, the paperwork to buy a timeshare is lengthy: and most of it is written in very small type. The sad truth is that many people don't take the time to read their contract thoroughly. It is only months later when they receive their annual bill, try to make a reservation, or find out that the resort is filing Chapter 11 papers, that they cry foul.

I've said it before and it bears repeating… you have to read and clearly understand everything in your documentation. Most people are not going to take the time to read the paperwork in the closing or documentation room, in the case of buying from the developer (yes, some people are still buying from the developer), or when they receive the paperwork in the mail when buying on the secondary market.

Here are three questions that you absolutely need answers to before proceeding with any purchase:

1. What is the five (5) year history of the annual maintenance and special assessment fees?
2. Is the HOA under owner or developer's control?
3. Who are the developer/broker/HOA presidents?

These are three of a long list of questions to which you need clear, concise answers. For the entire list, see "Timeshare Vacations For Dummies" as well as our new e-book which will be out in early 2011. We've also posted a new set of FAQs on our Timeshare Insights website, so be sure to check those out as well.