Legal aspects of timeshare

Legal aspects of timeshare

Timeshare is a form of acquisition of real estate in property for a certain time during the year. The unit of this time is a calendar week, which in this case is called Timeshare-interval. Timeshare-interval consists of seven days and eight nights, begins on Saturday at 9:00 (time of arrival at the resort) and ends at 23:00 on Friday (departure time).

Despite the fact that the year consist of 52 weeks, in Timeshare the year consists of 53 Timeshare-intervals. Fifty-third week is floating, and may continued in the next calendar year.

Timeshare intervals are measured the time, which the buyer purchased of Timeshare in property. That is not bought a month or two or three, and a specific quantity of Timeshare-intervals. Four Timeshare-intervals, reaching one after the other, would be approximately one calendar month.

Timeshare intervals are measured the time, which the buyer purchased of Timeshare in property. That is not bought a month or two or three, and a specific quantity of Timeshare-intervals. Four Timeshare-intervals, reaching one after the other, would be approximately one calendar month.

Every Timeshare-interval has an index number, for example, the 1-st Timeshare-interval will include the period from 1 to 7 January, 2-nd Timeshare-interval – from 8 to 14 January, and so on. Accordingly, the end of December will be 53-Timeshare interval.

Ownership of Timeshare-interval issued by membership certificate, this a document which describes the resort, time of stay in it and personal data of the owner. The certificates are securities, and where it is described by law, it can be used appropriately, that is, for example, as collateral or security for credit. Furthermore, the relationship between owners of Timeshare-intervals and resorts are determined by the Charter. The Charter is a set of internal rules that governed accommodation and presence the owner at the hotel, his rights and responsibilities. For example, time of arrival and departure may vary due to various features of the hotel or country.
The Charter can not contradict with national and international legislation of Timeshare, but can only regulate various aspects of the relationship, remaining outside the legal regulation.

Despite the fact that in the EU and particularly in the U.S. Timeshare is a powerful and well-developed legal framework, in Russia the Timeshare Act so was not accepted. However, it is possibility to use the international legal framework, in particular, by legislation about Timeshare, accepted in Great Britain in 1992.
Thus, holders of the certificates and hotels can regulate their relationship and focus on those standards.
Standardization of basic concepts allows producing a correct estimation and comparison of different Timeshare-intervals on the most important criteria that it is necessary for realization of any operations with certificates. Below are descriptions of basic standards:

TYPE OF APARTMENTS .  Apartments in the Timeshare is not hotel rooms, but rather a full flat, which has a kitchen, microwave, oven ordinary, fridge, kettle, washing machine and other necessary things in the economy.
However, apartments, as well as flat, may have completely different metric area from 30 to 300 square meters, and quality finishing. The quantity and quality of options can also be quite different.
Furthermore, the important characteristic of apartments is quantity of quests that can accommodate them simultaneously.
Thus, for standardized description quality apartments used several types of determining the size of the apartments and the maximum number of guests:

T0 – StudioT0 – Studio (Studio is one-room apartment) – is usually a kitchen, combined with a lounge. In Timeshare, besides determination of the type of apartment, it also means that while in the apartment can accommodate up to two people simultaneously. That is, if on such a certificate will arrive three guests, then a third or refuse in the arrangement or offer to pay for their stay further.T1 – One bedroomT1 – One bedroom (two room apartment) – ) is usually a kitchen, lounge and one bedroom. In Timeshare, besides determination of the type of apartment, it also means that while in the apartment can accommodate up to four people simultaneously. If such a certificate will come from one to four guests, they are easily accommodated in the resort, but if there would be five, the fifth or refuse in the arrangement or offer to pay for their stay further..
T2 – Two bedroomsT2 – Two bedrooms (three room apartment) – is usually a kitchen, lounge and two bedrooms. In Timeshare, besides determination of the type of apartment, it also means that while in the apartment can accommodate up to six people simultaneously. If such a certificate will come from one to six guests, they are easily accommodated in the resort, but if there are seven, the seventh or refuse in the arrangement or offer to pay for their stay further.T3 – Three bedroomsT3 – Three bedrooms (three-four room apartment) – (). In standard classification of apartments the T2 is the highest type, but some resorts introduced type of T3, an order to show that quality of such apartments is higher, than at standard of T2. By most criteria, such apartments are compliant with T2 to the right for placing from one to six people. However, with the difference in the number of bedrooms, them in T3 more then two, i.e. three or more. This type of classification exists and is described in the certificates and charters of some clubs, and it can not be ignored.

Thus, if in a certificate is indicated the type of apartments T3, it can go on from one to six people. If such a certificate will come from one to six guests, they are easily accommodated in the resort, but if there are seven, the seventh or refuse in the arrangement or offer to pay for their stay further.
Р – PresidentР – President . President is not a separate type of apartments, and an indication of the high comfort of apartments of standard type. For example, apartment T2P is T2 standard apartment superior quality and finishing. Moreover, it is necessary to mean, that apartments type T1 and T0 can not be President. At the maximum number of guests does not affect, therefore, on such a certificate can rest well from one to six persons.

Level or « Star » of resort. As in the tourism business, the resort is used to assess the category “Star Ratings”, which reflects the level of quality resort – the level of service, furnish the apartments and the volume of services provided. In contrast to the type of apartments, this option applies to the resort as a whole, and therefore not described in the certificate of membership. The level of resort is determined by Charter documentarily and directly influences on the cost of certificate of membership. However, importantly, this option is not taken into account in the exchange of certificates. To standardize assessment of the quality of the resort in general, made the following classification:

Diamond crown «Diamond crown» (5 stars) DC – A Diamond crown resorts are resorts of higher level of service with the best quality of finishing and most vast set of services. Resorts such a level approximately corresponds to the best hotels of category five stars. Often these resorts do not have studios and apartments are only types of T1, T2 and T3.

Golden crown «Gold crown» (5 stars) GK – A Gold crown resorts are resorts of higher level of service with the best quality of finishing and vast set of services. Resorts such a level roughly corresponds to the hotel category five stars. The difference from the resort of Diamond crown is less extensive vast of services.
Silver crown «Silver crown» (4 stars) SC – A Silver crown resorts are resorts of mid-level of service with the best quality finishing and a set of services. Resorts such a level roughly corresponds to the hotel category four stars.
Bronze crown «Bronze crown» (3 stars) BC – A Bronze crown resorts are resorts of lowest level of services with acceptable quality of finishing and minimum set of services. Resort this level roughly corresponds to the hotel category three stars. However, keep in mind that even the lowest quality of Timeshare resorts, this self-contained apartments, which means quality of living here is much higher than in the hotel.

SEASON. As in the tourism business in the Timeshare use terms such as ” high season “, ” midium season ” and ” low season “. In each country, these seasons can be assigned its own way, depending on that, when there are the most favorable conditions for rest. Moreover, it is not everywhere the high season is on summer months. For example, in Thailand, Vietnam and India accounted for the high season from December to March, after which there begins the rainy season. Therefore, the summer in these countries is not the most auspicious period for rest. There are the places, where perfect weather all tear round. Canary Islands, Tenerife – this is a unique climate in the sense of place throughout the year about 25 degrees Celsius, so there is a constant high season. And, for example, Finland is famous for its winter resorts, which means that its high season is fallen to the winter.

Frequently the high season is attached to the international holidays (Christmas, New Year) or to the popular local events (Carnival, etc.).

In classic tourism tour cost depends on the quality of the season, in which it falls. Timeshare is arranged in this way, the cost of purchased property depends on what season is the right to use it.

Acquiring a certificate with the right to use in “high” season, the owner receives the right to use their Timeshare year-round, regardless of the quality of the season, holidays and any other circumstances.

A certificate for the “midium ” season gives the right to use at any time, except the periods of “high” season.

And, finally, a certificate for the “low” season allows you to use the resort in periods of minimal tourist activity.

Thus, everybody can choose conditions of rest, best suited its needs and the means available.

Quite often seasons in certificates are designated as “high”, “medium” and “low”, and as a rule, such a designation is used in the case of “floating membership”, i.e. without specifying the exact number of Timeshare-interval. However, a more traditional for Timeshare is the color classification of the seasons:  

HighMediumLow
RED – High RED – High is the most demanded and, accordingly, expensive season, indicated in Timeshare by a red color. The holder of such certificate can take advantage of the property at any time, regardless of season and other, influencing on the workload of resort: society or religious holidays, profile features of resorts (skiing, golf clubs, etc.).YELLOW, GREEN – Medium RED – High is the most demanded and, accordingly, expensive season, indicated in Timeshare by a red color. The holder of such certificate can take advantage of the property at any time, regardless of season and other, influencing on the workload of resort: society or religious holidays, profile features of resorts (skiing, golf clubs, etc.).BLUE, WHITE – Low -Low is season of minimum loading of resort, visit during peak season are excluded. In Timeshare this season is designated as blue or white. These designations are equivalent, different resorts designate the medium season one or another color. Both variants are legal and are described in the certificates, so can be used on an equal footing.

 

TYPE OF TIMESHARE. It is accepted to consider that the term of membership at the Timeshare-resort is 69 years with the right of succession and extension. This is perpetuity. In addition, there are various forms of temporary membership, such as for two, three, four, five and eight years. Different forms of membership have different features, the main of which are listed in the table below:

UrgentAdministrative charges are absent.IndefiniteThere are administrative charges.
Impossibility of the use of the combined intervals.The ability to use the combined intervals, i.e. if purchased two Timeshare-interval in succession, it is possible to have a rest in succession two weeks.
In urgent certificates missed Timeshare-interval burns. For example, a certificate issued for three years – from 2000 to 2002. If you did not go to rest in 2000, a week in 2000 had burned and there remains only two weeks in 2001 and 2002.Ability to accumulate missed Timeshare-interval, i.e. owner, not off on holiday this year, can by agreement with the resort, take their holidays for next year. Or, if he is a member of any exchange system, he can accumulate their week in Spacebank.

Furthermore, increasing distribution becomes, the so-called System of Glasses (SG). This system appeared comparatively recently, since the late 90-th, and by this system the level of membership is not determined by season and apartment type, but by quantity of acquired virtual glasses.
I.e. the purchased share of the property is expressed in a certain quantity of glasses or points, in accordance with which the owner can choose the appropriate season and type of apartments.

For example, suppose that one of Timeshare-interval in apartment of T2 in RED season costs 60 points, in apartment of T1 in RED season costs 40 points, and in apartment of T0 in RED season costs 30 points. In that case, the owner of the certificate for 100 points can rest a week in apartment of T2, 2 weeks in the apartment of T1 or 3 weeks in the apartment of T0 (all of it in RED season).

As already mentioned, the acquired share of property is expressed by a quantity of points, therefore this quantity remains unchanged for the duration of membership. I.e., the owner of certificate has the opportunity to use their 100 points most convenient for him means every year.

Additional convenience of “glasses” membership is the ability to purchase any quantity of points, because the cost of such a certificate is calculated based on the cost of one point.

The obvious advantage of such system is absence of attachment to the seasons and type of apartments, you can go any time and any number of people without loosing money on the unclaimed quality of season or apartments. For example, if one of family member is not going to rest, in the case of the fixed type of apartments remain unexploited opportunity to place one person. And because this capability is stopped up in the cost of the certificate, this money is actually lost.

Furthermore, points can be accumulated, and this means that if you don’t use your Timeshare a few years (or to accumulate remaining unused points), at the specific moment it will be possible to arrange a long and very high-quality rest. In the case of fixed membership, you can combine a week only on the basis of last year to the current year.

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