Time-shares became popular in Europe in the 1960's when escalating property prices made it nearly impossible for most people to afford a full-time vacation home. By creating a shared ownership, developers were able to reduce the costs for each owner, allowing them to successfully market and sell properties to a greater number of clients.

Time-shares have been sold for cruises, recreational vehicles, campgrounds, and many other types of properties, but their most populare use is for shares in condominiums at timeshare resorts.

Time-shares have been sold for cruises, recreational vehicles, campgrounds, and many other types of properties, but their most populare use is for shares in condominiums at timeshare resorts.

What Do You Own?
Technically, when you own a time-share, it means that at a specific 'time' you have access to the 'share' you own in a property. There are ownership variations that offer flexibility so that you aren't tied down to one place and one time.

What Do You Pay For?
Time-share owners pay for their unit. Financing is available for new units sold by developers, but most resales–units purchased from individuals–are cash transactions.

All owners share maintenance fees, management fees, and costs to upkeep common areas such as pools and tennis courts. Fees vary and should be disclosed to you when you buy a unit.

A few of the many time-share ownership arrangements

Fixed Unit, Fixed Week, Deeded Agreement
A deed states you own a specific time-share at a specific time each year.
Floating Time Agreement
Use time is flexible. Reservations are on a first-come basis, since all owners likely have the same option.

Right-To-Use Plan
A lease agreement. At its end you no longer have any rights to the property.

Vacation Clubs, also called Points-Based Programs
Owners choose from a variety of vacation destinations. Each stay uses points, which vary for the time-share unit and season chosen.

If you buy from a time-share developer
Become familiar with time-share laws in the state where you plan to buy or sell. Visit the real estate commission Web site for the state that controls the development to read time-share laws. Agent pages are often the best places to find information about laws that govern the initial sale of time-shares.

If you buy a time-share resale.
Resales can typically be purchased for a fraction of the cost of a new unit.

Do your homework. Understanding the variables and all of your rights as a time-share buyer will give you more confidence when negotiating for the property.