Timeshare

The system appeared in 1974 when Resort Condominiums International, RCI, was registered. The second largest market player is Interval International. Since 1983, MONDI-Holiday has been a leader in the German market. In 2010, they introduced the new Easy Exchange system. The right to rest is acquired for several years, the possibility of exchange and even inheritance is provided ^[2] . The largest timeshare operator in the USA is redweek.com. However, in the CIS countries there are a lot of scammers using elite brands ^{[3] [4]} . In order to increase the legal protection of timeshare owners, organizations such as the Deutscher Bundesverband für Teilzeitwohnrechte eV (All-German Timeshare Union) were created.

Aparthotels - tourist complexes with developed infrastructure (reception, bar, restaurant, pool, gym, playgrounds, etc.) and differing from hotels in that they consist of apartments instead of traditional hotel rooms.

Apartments - in Western Europe - an apartment in a private multi-family residential or tourist complex. Different types of apartments are distinguished by size and number of bedrooms. In tourism, the characteristics of the apartments are maximum capacity and comfort, which are usually indicated in brackets through fractions (Note: 1-Bed (4 \ 2) - apartments with one bedroom and a maximum capacity of 4 people, and comfort 2 people). The apartments differ from the hotel room by the presence of a kitchen (minimal or full).

Timeshare - a form of ownership of apartments in the framework of the aparthotel complex or the right to unlimited exclusive use of apartments on the basis of dividing time by a multiple of a week in each calendar year. A unique and attractive part of the program is the exchange of timeshares through an independent exchange company.

Week of rest - the shortest period of time in the apartments of the aparthotel complex, which can be purchased for unlimited possession as part of the timeshare program. There are no restrictions on the number of weeks of a timeshare that a single buyer can purchase.

Floating ownership - the buyer, acquiring a timeshare, is determined only with a specific size and type of apartment, the number of weeks of vacation purchased and the season. During the season, the owner of the timeshare can order accommodation in the agreed size of the apartment on different dates. (Note: In one year you are traveling in June, and the next year in September or again in June.) You only need to inform the club in advance and book your apartments for specific dates according to the day of arrival. There are no surcharges for changing the dates of the planned trip, as there are no restrictions during the season. Ideal for people whose vacations are always at different times or on a rolling schedule.

Points (points) - a kind of timeshare. Acquired property is valued in points (points) with which the owner, as it were, pays for each individual order. A very flexible system that allows you to choose and vary according to the need for each trip a different apartment size, break a week's vacation into weekend trips, book a ten-day vacation and much more.

Timeshare owner - an individual or legal entity that has acquired or otherwise received a timeshare. There are “Primary Owner” and “Co-Owners”, where “Primary Owner” is the person indicated first on membership documents (timeshare ownership documents) including on the timeshare certificate. At the same time, no more than 4 people can own a timeshare. “Principal Owner” and “Co-Owners” are absolutely equal in rights. However, the certificate only shows the address of the "Principal Owner" and all member correspondence is sent to this address.

Multiclub - an association of resorts, which usually have one Founder. Clubs can be located in one or in different regions and even in different countries. There are multiclubs that unite only three resorts, and there are associations of more than two hundred resorts. The type of ownership in a multiclub is always floating. A member of the club has the right to choose, within the framework of his season and the size and type of apartment, not only different times for rest, but also a place of rest. (Note: One year to go on vacation in July to the Costa del Sol , and next year to New Year in Tenerife , and the third year to England in May, etc.) Choosing a vacation destination does not require surcharges and is sometimes called "Free internal exchange." It is considered an advantage that money is saved on the exchange. Membership in a multiclub does not exclude the possibility of exchange through an independent exchange company. However, such an attractive membership is not suitable for those who would like to have a guaranteed place and time of rest.

Certificate - a document confirming the rights of the owner of a timeshare, certificate of ownership. The document describes the owner’s property: the name of the club, the size of the apartment, the number and number of weeks, the date of registration of membership and the issuance of the certificate, its number, as well as information about the owner, including his address and co-owners. For timeshares in the form of points, the certificate indicates how many points are owned by the owner. The reverse side of the certificate is an act of transferring membership rights and is filled out only if the owner intends to transfer his rights (sell, give, etc.) to another person or persons. Keep your membership certificate in a safe place.

The founder of the resort is an organization, legal entity, less often a private person who is the original developer of the resort, the owner of land and buildings that make up the recreation complex. The developer of the timeshare complex, before signing an agreement with the exchange company and introducing its complex into their exchange system, is obliged to perform a number of legal actions. These actions are aimed at ensuring the subsequent legal protection of club members (timeshare owners), such as: registration of the Club Charter, transfer of constituent documents, including land and building acts to an independent Trustee, etc. The founder hires an independent marketing company or sometimes creates an independent marketing company own, but necessarily financially and legally independent of the club itself.

The trustee is (most often the Hutchinson & Co Trust Company First National Trustee Company or Notary) in most European countries a mandatory independent legal structure designed to comply with the law and coherence in the club, while protecting the interests of both the founder and timeshare owners. The duties of the Trustee include: Encumbrance and confidential storage of all constituent documents of the resort; Creation of the Charter of the club and control over its compliance; Creation and maintenance of a register of club members (timeshare owners); Assignment and assignment of property to them in the form of weeks and points; Issue of documents confirming timeshare ownership (membership certificates); Renewal of membership from one to another person during resale, donation, inheritance, etc .; Maintaining special notary accounts of the club (escrow), where the buyer can transfer money to a timeshare, if he does not trust to pay either the marketing company or the founder.

The management company is a hired organization whose responsibilities include daily resort management, maintenance and maintenance of apartments and the entire infrastructure of the complex. Initially, the founder of the resort selects and hires a management company. Subsequently, the club committee may extend the club management agreement or provide it to another management company, having secured a majority of votes of ordinary club members at the annual general meeting. The management company hires and dismisses resort employees, draws up and distributes the budget for the maintenance of the complex, makes reservations for clubs in floating ownership or points (points), sends invoices for membership fees, monitors their timely payment.

Marketing company - a legal entity authorized by the founder to sell timeshares belonging to him and to carry out any kind of marketing activities for this. Most often, marketing companies to conduct sales of timeshares conduct individual or collective presentations, during which they explain for several hours the features, principles of work and advantages of the timeshare and offer to make a purchase on special presentation offers. The responsibility of the marketing company to the buyer of the timeshare includes reliable information about the subject and conditions of the purchase, timely transfer of the buyer's money to the account of the trustee or founder minus his commission, as well as providing the buyer with the original membership documents confirming the acquisition in accordance with applicable law (including including issuing a membership certificate), as well as cards of the exchange company. After the issuance of all of the above documents, the responsibilities of the marketing company to the buyer are considered fulfilled. However, due to the Russian specifics, many marketing companies provide additional related services, which the owner of the timeshare can receive independently (such as: accommodation, air travel, visas and insurance). There are marketing companies that work under an agreement with the founder in the resort, and those that work outside its borders, including in other countries.

Timeshare Resale Agencies - an independent legal entity that aims to profit from sales transactions between ordinary club members (owners of timeshares). In essence, the activity is identical to real estate agencies. With one difference is that it does not organize viewing of apartments for the buyer. This is due to the fact that usually a potential buyer has already visited and rested at a particular resort or owns a week or points there. Resale agencies do not make presentations and do not own primary sales technologies, but work exclusively with customers who are well aware of the timeshare system. Having accepted an application from a potential seller and having agreed with him the terms of sale, they make this offer on their list and strive to attract potential buyers through the media (newspapers, magazines, the Internet, television). The current trend is the creation of timeshare-online stores and participation in tourist television channels. The resale agency can provide services for re-registration of membership documents (certificates) in the relevant authorities or simply represent the seller to the buyer.

An exchange company is an organization that exchanges timeshare weeks between club members. They provide owners with the opportunity to exchange their timeshare for another - for another time, place, or both at the same time. The exchange company guarantees the same level of resorts included in a single catalog of resorts. The two largest exchange companies are Resort Condominiums International and Interval International. Almost all resorts are included in one of these two organizations. However, there are exchange companies that allow exchange between the owners of any timeshare.

• An opportunity to transfer your weeks for temporary use (rent) to marketing companies for an agreed amount.
• The opportunity to give your weeks or pass on by inheritance.
• A good way for enterprises and organizations to solve the problem of purchasing and maintaining a resort for their employees and their families.
• The timeshare system is especially beneficial for families with children.
• An economical way to spend your vacation while providing a higher level of comfort and service compared to traditional types of recreation.
• Among the advantages of a club holiday, it is especially worth noting its advantage for family and youth recreation and the presence of a fully equipped kitchen, which allows you to save money and also freely build your daily routine in comparison with ordinary hotels.

In Russia, a significant drawback is the risk of being cheated due to a lack of experience with a timeshare. In addition, unlike some countries, such as Spain, Russia does not have a legislative framework. Thus, risk increases the need for large initial investments. The timeshare reputation in Russia is greatly “tarnished” ^[5] . The courts hear hundreds of civil cases in lawsuits of people affected by dishonest actions of travel companies involved in timeshare.

The bad reputation of a timeshare in Russia is due to the fact that the providers of these services often offer projects at inflated prices, use aggressive selling methods, lure money, providing false information about the possible use of real estate and the amount of fees for its maintenance. The timeshare is difficult to use as an investment : often there is no real market for its resale, in addition, service providers often do not record the acquisition of this property in the land cadastre or property register (in case of bankruptcy, the buyer will not have any rights) ^[6] .

To protect buyers from dishonest timeshare sellers, many countries have introduced measures to prevent fraud. The American Resort Center Development Association (ARDA) has published a code of ethics for the United States. AOCAP Pacific Alternative Ownership Conference actively monitors club vacation sellers in the Pacific. According to the EU Timeshare Directive (not valid in all countries), adopted in 1994, sellers are required to provide the buyer with comprehensive information, to ensure the buyer’s right to refuse the contract. It also contains provisions to protect the rights of the buyer ^[7] .

2018 year. In Russia, a non-profit organization "Rustime" was created to protect the rights and interests of timeshare product owners and timeshare industry participants. The mission of the non-profit organization “Rustime” is to promote the development of a civilized timeshare market in Russia, to ensure that the Russian middle class enters the world system of prestigious self-supporting leisure and related business, and strengthens the international image of Russia as a country favorable for tourism ^[8] .

The main goal of the Association is to bring together club vacation product owners (timeshare), as well as experts and consultants in this field, owners of tourism infrastructure, both foreign and domestic, to represent and protect common, including professional interests, as well as create a community experts in the field of timeshare and the development of mechanisms governing the market for timeshare products ^[8] .

• Overseas property. Purchase, sale, rental, inheritance and other aspects of ownership = The Internationales Immodilienhandbuch: Erwerb, Besitz und Verkauf von Immobilien, Steuern und Erbecht, Aufenthalt und Wohnistznahme. - M .: “Alpina Publisher” , 2011. - 822 p. - ISBN 978-5-9614-1088-4 .