Reviewed by Sep 30, 2020| Updated on
Timeshares are split ownership models of a vacation real estate or accommodation in which numerous buyers hold allotments of usually in a week’s increment within the same property. The model of a timeshare may be applicable on numerous property types. It includes luxury hotels, resorts, apartments, condominiums, and camping grounds.
A timeshare bestows on the purchases the legal right to the yearly special use of holiday property over a predefined timeframe, which is typically measured in a week’s increment. A timeshare model generally uses one of the following orders:
i) Fixed week
This gives the purchaser a legal right to access the facilities of the property over a pre-agreed week of each year. The main benefit of the fixed week timeframe is that the purchaser may plan a vacation at the same time each year. However, like everything has a flip side, the catch in this structure is that the buyer may find it tough to make arrangements at the same time every year and he or she may find challenges in changing the week.
ii) Floating week
This type of structure of the timeframe provides the purchasers with an exclusive right over the property over a week or weeks over a specified timeframe over the year. This kind of timeframe certainly seems more useful than the fixed week structure, but the flip side is that the purchaser may find it difficult to book it during the busiest time of the year, such as Christmas.
The points systems utilise points to depict the timeframe ownership that is based on factors, such as the size of the holiday property, resort location, and the availability time. Points are assigned by the developers to encourage exchanges of timeshare either in their resort or at the other resort too.
A joint account is a bank account, which is shared by two or more individuals. Read more
An aggregator is an organisation that buys mortgages from financial institutions and then securitises them into mortgage-backed securities (MBS). Read more
Provident Fund (PF)
A provident fund is a government-managed, mandatory retirement savings scheme used in India, Singapore, and other developing nations. Read more
Senior Citizens Saving Scheme (SCSS)
The Senior Citizens Savings Scheme (SCSS) was implemented with the main objective of providing daily income for senior citizens in the country after they hit the age of 60 years. Read more
The land refers to a property or real estate, except buildings and facilities allocated by fixed spatial boundaries. Read more
An encumbrance is a charge by a party who is not the proprietor against a property. Read more