This Is What You Need To Know About Timeshare Charges

When you purchase a timeshare, either on the primary or the secondary market, there are a number of charges that you will encounter aside from the purchase price.  

Read this to understand the basic, not so basic and red flag charges you may encounter. 

Standard Timeshare Fees

Maintenance Fees

Regular maintenance fees cover normal wear and tear on the timeshare units and common areas, such as the pool, the clubhouse and the grounds.  Most resorts have a timetable for replacing items such as televisions, bedding, kitchen appliances, etc. This timetable and more information on annual fees can usually be found in the Public Offering Statement (POS).

Real Estate Taxes

If a timeshare is in fact real estate-based, there are taxes to be paid, similar to a home or condo.  Some resorts combine the annual maintenance fee and the real estate taxes into one payment, but it is a good idea to get the breakdown, as the real estate tax you pay on your timeshare may be tax deductible.

Special Assessments

While maintenance fees are regularly occurring, special assessments are by their nature “special” or assessed on a non-regular basis.  Special assessments are levied to cover costs over and above normal wear and tear and replacement of items.  A typical example of when a special assessment is needed and what it covers is hurricane damage.

Exchange Company Membership/Subscriber Fees

The primary exchange companies, RCI and Interval International, charge an annual membership fee, which you need to pay in order to take advantage of any trades/exchanges.  Some of the other exchange companies do not charge any annual fee.  

Exchange/Trade/Usage Fees

In addition to the exchange company membership fee, there are exchange or usage fees charged in order to use your timeshare.  Exchange/usage fees vary depending on if the exchange is domestic or international; made on the phone or online, or if the exchange is internal or external

Charges You May be Asked to Pay

With the exception of the “Administration Fee” which I do not like at all, these fees must be factored into the overall cost of purchasing/owing. Nearly all of them are negotiable.  It pays to ask.

Title Transfer Fee

Guest Certificate from Exchange Company

Wi-Fi

Administrative Charges

Cleaning

Gym

Pool Towel

$300 Marriott New Member Education Fee (covers usage and benefits)

Questions to Ask Before Purchase

Who is in charge of collection of the fees and when will they be assessed?

Who is the resort’s management company?

Who serves on the resort’s HOA board?

How much have the fees increased over the past five years?

Is there a cap to how much these fees can be raised annually?

If you don’t get full answers to these questions and are shown the answers in writing, not merely on a piece of paper, do not proceed with the purchase. This isn’t the only timeshare fir sale. You deserve better.