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WHY CAN'T I SELL MY TIMESHARE? Now that we know some resorts consider a viable resale market a legitimate threat to their business model and bottom line, the next question is, what are they doing about it?
Here is what one major U.S. resort developer had to say about the approach they are taking to ensure little to no competition from timeshare owners themselves. Again, this is in their own words — taken directly from their SEC filings: “Owners generally can offer their vacation ownership interests for resale on the secondary market, which can create pricing pressure on the sale of developer inventory. However, owners who purchase vacation ownership interests on the secondary market typically do not receive all of the benefits that owners who purchase products directly from us receive.”
“When an owner purchases a vacation ownership interest directly from us, the owner receives certain entitlements that are tied to the underlying vacation ownership interest, such as the right to reserve a resort unit that underlies their vacation ownership interest in order to occupy that unit or exchange its use for use of a unit at another resort through an outside exchange service provider, as well as benefits that are incidental to the purchase of the vacation ownership interest. While a purchaser on the secondary market will receive all of the entitlements that are tied to the underlying vacation ownership interest, the purchaser is not entitled to receive certain incidental benefits. For example, owners who purchase our products on the secondary market have restricted access to our internal exchange programs and are not entitled to trade their usage rights for Rewards points. Therefore, those owners are only entitled to use the inventory that underlies the vacation ownership interests they purchased.”
Yes, the resort is telling us that any buyer of a timeshare interest in the secondary market is penalized in terms of restrictions. Essentially, the resort is stating that they generously allow timeshare owners to advertise their timeshares for sale—much to their perceived peril—but they draw the line at providing new owners who bought their timeshares on the resale market with the same benefits as owners who purchased their contract according to the resort’s terms.
Need To End Your Timeshare Ownership? Call The Timeshare Exit Hotline At: (877) 323-9923
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