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LEGAL SERVICES

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TIME-SHARES

Q. What should I be aware of when buying a time-share?
A. Time-shares are a period of time, maybe a week or so per year, that you can buy for a
specific property (usually a residence at a resort), during which the right to use the property
belongs to you. The idea is that you benefit by "prepaying" for a vacation place rather than
renting it, as you otherwise might do. The profit that would have gone to the owner
supposedly stays in your pocket.
One problem is that the savings are often offset by expenses. 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 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.

Q. Don't time-shares eventually "break even"?
A. Time-share sellers will often point out that, notwithstanding these problems, once you pay
off the time-share you will have "free" vacationing, so at some point you will break even with
the cost of renting and eventually be in the black. But that break-even point, which takes in
account all of your costs, including interest, may not come for ten to twenty years. Ask
yourself whether you are prepared to vacation in the same place every year for the next decade
so you can eventually save on your vacation expenses.

Q. If I don't like the time-share deal, though, can't I just sell it?
A. In theory, yes. Practically speaking, though, many people who bought time-shares in the
1980swhen any investment involving real estate looked like a winner - are finding themselves
with white elephants on their hands. You may have to unload the time-share for much less
than you paid, if you can find a buyer at all. You may be stuck agreeing with the sponsors that
they will take back the time-share during the payment period and you will be off the hook for
the rest of the term. You would get nothing back for what you've already paid in (which might
be several times what you would have paid in rent) but you would have no further obligations.

LEGAL SERVICES

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TITLE: Legal Services at CitiMall Shopping Mall

Legal Law Category: Law , Legal, Attorney, Advice, Firm, Search, Attorneys, Lawyers, Power of Attorney, Durable, Forms

Shopping Mall: Legal Services get attorney advice, search, law firm, legal law advice Forms, law, power of attorney, Legal service, Free legal Forms, legal advice, legal, aid, legal document, prepaid legal, help, information

Legal Law Topics: Law, Legal, Attorney, Advice, Law Firm, Search, attorneys, Legal Terms, Free legal documents, attorney, lawyer, lawyers, power of attorneys durable, forms