When you buy a timeshare you will have to pay an average of $20,000 for the “purchase.” Often this will be financed by the timeshare company itself (with a nice loan whose percentage rate, averaging 14%, they also get to keep—funny how that works, isn’t it?). Then, every year, you will have to pay maintenance fees—which often start around $500 per year, but have no cap and can grow to as much as $1000 within two years. These are often-mentioned costs of owning a timeshare. But, on top of these already-egregious costs to normal people, the timeshares also subject their “owners” to the risk of something called “Special Assessments.”
Special Assessments are fees—yes, more fees—added to the top of an ordinary maintenance fee, generally used to cover unforeseen costs that have to be covered by the timeshare property. Common reasons for these Assessments include natural disasters such as hurricanes, upgrades (which one would think they’d be thinking about ahead of time), or new management (and why is that YOUR problem?).
Given that most of these timeshares are found in areas close to the ocean—and our own dear Florida is the location of the lion’s share of timeshares; we know how many hurricanes threaten us in a given year—by all rights these companies should be keeping funds in reserve to cover the costs that might occur in case of flooding and wind damage. But no—these companies, which are raking in the dough from their sleazy sales, push the costs of natural disaster on to the people they have already bilked. Some special assessments have been known to go over $5000 per week for a single year.
And if you don’t pay the special assessment? It’s the same as not paying your maintenance fees. Which means—you guessed it—the timeshare company will come after you for the money, revoke your right to use the timeshare, and leave you paying a loan for something you don’t even have the right to use anymore.
The only way to avoid such an outcome is to avoid purchasing a timeshare in the first place—or to cancel your timeshare contract in time.
If you have recently signed an ownership contract for a timeshare, The People’s Advocate can help you undo some of the damage. Attorney Joe Brien has decades of experience battling for the rights of consumers, and he is ready and willing to take on the timeshare developers on your behalf. Contact us today to make an appointment for a free information session on how you can turn the tide on the jerks who have used every trick in the book to convince you to buy something you really don’t need, and who are now using that property to make your life difficult. But act fast! The window for cancelling a timeshare ends only days from when you signed.