According to the World Tourism Organization, about 90% of U.S timeshare resorts utilize some form of fee-simple ownership. The timeshare resorts charge two main fees: the initial purchase cost and the annual maintenance fee.
Timeshare’s initial price depends on the share size, locale, and year period. Moreover, the timeshare fees shift depending on the property state and the market’s timeshare at the time of purchase. The estimated price of a new timeshare is $10,000, while that of a used timeshare is $1,500.
Moreover, you would have to pay an annual maintenance fee for the timeshare resorts. All shareowners must pay for maintenance, utilities, plus taxes. Typically, the timeshare resort maintenance fee ranges between $300 and $400. However, the maintenance fees during the peak seasons or for those owning larger shares can go up to $1000 or more yearly.
You should know that the yearly maintenance fees are payable regardless of whether you, as the shareowner, use the property or not and that the resorts are at liberty to hike the annual fees yearly. Other times, the annual maintenance fees do not pay the property taxes, meaning you will have to settle the costs yourself. Such challenges can cause you to want to get out of timeshare resort fees.
Other fees include the transfer fees and the recording fees. These fees are the additional real estate fees that arise from the sale of a share when a shareholder wants to get out of timeshare resort engagement.
Another fee associated with timeshare resorts is the assessment fee, which timeshare resorts often transfer to the shareowners. Assessment fees arise when a resort decides to perform a major enhancement to property or has numerous and significant repairs to execute.
The timeshare resort can then assess a massive fee to the shareowners so that they pay. It is wise to go through a timeshare resort contract before signing to ensure that you are not hit by a colossal assessment fee in the future, as that burden can most likely force you to get out of timeshare ownership.
A timeshare seems to be very lucrative on the outside. However, it would be best if you got into the nitty-gritty of owning a timeshare, especially the fees, before taking it up to avoid all the frustrations that may make you prematurely get out of timeshare ownership. If you have entered a timeshare and are looking for a way to exit it, contact us today to work with one of our experts!