What Is a Timeshare?
A plain-English guide to how timeshares work, how contracts are structured, and what ongoing fees and obligations most owners face.
This page is for general consumer education only. We are not a law firm and this is not legal advice.
A Simple Definition
A timeshare is a form of vacation property ownership where you pay for the right to use a resort unit for a certain amount of time each year. In exchange, you take on long-term financial obligations like maintenance fees, taxes, and other charges.
Sales presentations often focus on the idea of "pre-paid vacations" or "vacation ownership." But from a practical standpoint, a timeshare is a contract that commits you to ongoing payments, even in years when you do not travel.
Understanding what you actually own—and what you are required to pay—is the first step in deciding whether to keep, use, or exit a timeshare.
- Use of a resort unit for a specific week, season, or number of points each year
- Ongoing maintenance fees that typically increase over time
- Possible special assessments for major repairs or upgrades
- Restrictions on when and how you can book your stay
- Complex contracts that can be difficult for owners to interpret
Common Types of Timeshares
Deeded timeshare: You receive a deeded interest in the property, similar to owning a slice of real estate. Your obligation usually continues until the interest is sold, transferred, or otherwise resolved.
Right-to-use timeshare: You do not receive a deed. Instead, you get the contractual right to use the property for a certain number of years. Payments and rules are still enforced by contract.
Week-based systems: You own or control a specific week (or set of weeks) at a specific resort. Changing dates or locations usually requires exchanges or upgrades.
Points-based systems: You receive points each year that can be used to book different resorts, dates, and unit sizes. While more flexible on paper, availability and fee structures can be complex.
What Your Contract Usually Requires
Most timeshare contracts require you to pay:
- Annual maintenance fees for property upkeep
- Occasional special assessments for major projects
- Taxes and administrative fees connected to the resort
- Possible exchange or booking fees if you use a points or exchange system
Contracts also spell out what happens if you stop paying, how ownership may pass to heirs, and what (if any) exit or deed-back programs exist. Because these terms vary widely, many owners choose to have their documents reviewed in detail.
- Ongoing Financial Obligations: Timeshares come with recurring maintenance fees and potential special assessments that continue for as long as you own the interest.
- Long-Term or Perpetual Contracts: Many timeshare agreements are long-term or perpetual, meaning the obligation can last decades and sometimes pass to heirs unless resolved.
- Limited Flexibility: Booking windows, blackout dates, and competition for desirable weeks can make it difficult to use the property when you actually want to travel.
When a Timeshare Becomes a Problem
Many owners are comfortable with their timeshare at first, but over time rising maintenance fees, changing health or income, and lack of flexibility can turn it into a financial burden.
Maintenance fees and special assessments often rise faster than income or inflation, turning a "pre-paid vacation" into a long-term expense.
Retirement, health changes, new family obligations, or different travel preferences can make it difficult to use the timeshare you are still paying for.
Many owners do not want children or heirs to inherit long-term fee obligations. Understanding how your contract handles inheritance is critical.
Already Own a Timeshare and Have Questions?
If you already own a timeshare and are unsure what you signed or how fees will change over time, a detailed ownership review can help you understand your options.
For accepted clients, we put our commitments in writing and back our service fee with a 100% money-back guarantee if we do not follow through.