ABA Family Legal Guide

Contracts and Consumer Law

Special Consumer Protections

Time-Shares

What problems should I be aware of when buying a time-share?

One problem is that expenses often offset the savings. If, like most people, you finance your time-share purchase over time, the interest costs alone may eat away that supposed profit. Even if you pay cash, you lose the interest you could otherwise have earned on that money.

And unlike renters, who have the option of coming or not coming from season to season as a resort becomes more or less desirable, time-share owners are generally locked in. In some cases, they may be able to exchange their property, but that involves a formal exchange program and costs money. They usually cannot sell the property except at a substantial loss.

Furthermore, your time-share contract will make you responsible to pay any increases in taxes, maintenance, or repairs. If you think any of these amounts are going to decrease, you're in for a big surprise.