One of the main costs that goes into owning a timeshare is the payment of maintenance fees. In addition to purchasing the timeshare itself, most owners are required to pay the company that manages the timeshare regular fees to make sure that the property is kept in good condition. These fees are generally not optional. A failure to pay these fees can be considered a violation of the timeshare agreement and may subject the owner to legal action.
Because a time share property is generally occupied by multiple parties, no one owner is assigned responsibility for its upkeep. Instead, a property management company is paid to take care of the property, including making repairs, replacing worn out fixtures and furnishings, and cleaning. At the time that they purchase the property, timeshare owners sign a contract agreeing to pay these fees. Failure to pay these fees is, therefore, a breach of contract.
Generally, if an owner is delinquent in his fees, the property management company will attempt to collect the amount due through methods employed by many creditors. The company may write or call the owner to inform him that he is behind. In addition, depending on the wording of the contract, the company may assess the owner additional penalty fees for late payment or charge the owner interest on the amount that he owes.
According to RCI VIP, a reference website on timeshares, because maintenance fees are considered part of the price of timeshare, a failure to pay them can ultimately result in the owner being foreclosed upon. The foreclosure of a timeshare property works very much like the foreclosure of any other residential property. The property management company will file a motion in court seeking to have the property seized. If the foreclosure goes through, the property will often be sold at public auction.
If a tenant cannot or will not pay fees on his timeshare, he has a number of options that can help him prevent legal action. For example, if the tenant approaches the property management company before his fees become delinquent, the company may be willing to suspend payments briefly or work out an alternate payment plan. Or, in some cases, the company may be willing to buy back the timeshare, albeit at a lower price than the tenant paid for it.
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