Full Video Transcript
Owning your own timeshare vacation property may seem like a dream, but if you don't understand the legal aspects, it could turn out to be a nightmare. There are two basic structures for vacation property ownership, timeshares and vacation interval plans. Each has its own legal rights and obligations, so it's important to know what type you're purchasing. With the timeshare, you own your vacation unit either for life or a prescribed length of time. It's legally considered real property and you can sell it, rent it, exchange it or leave it to someone in your will. With interval plans, sometimes called right-to-use or points-based plans, you don't own the property itself, rather the developer owns the units, and you purchase the legal right to use them. The unit is legally considered personal property. Since each type of vacation unit carries different rights and different obligations regarding fees and costs, be sure to read the contract carefully before you buy.