For Every Timeshare Promise, Plenty of Unanswered Questions

Q: On a recent vacation in the Caribbean, we were approached by a young woman who wanted us to buy into a vacation home's ownership. According to this saleswoman, for the money that we would give, we would get a number of points, which could be used for vacations in various desirable hotels and cities throughout the United States. This was interesting, but we did not know enough about the transaction and opted not to buy. Can you provide some guidance on this concept? Is it a good deal?

A: One of the major travel books cautions vacationers that in some resort areas, they will be deluged by attractive men and women who want to sell vacation interests. According to the travel writer, while these salespeople are harmless, they should be ignored.

Many years ago, developers began selling timeshares. Depending on how much money you paid, you theoretically could stay at a large number of hotels "free" for a week or two. Many people bought into this concept.

If you own a timeshare, you have to pay a yearly maintenance fee, whether or not you use your vacation benefits. Over the years, many people became disillusioned with these purchases. Often they were unable to stay at their desired vacation spot. Often they learned that they had to take their vacation at the same time every year.

When they tried to unload their shares, they learned that they could be next to impossible to sell.

Because the term "timeshare" took on negative connotations for some, developers and major hotel chains started selling the idea as "vacation ownership interest" instead. Rather than buying a fixed week or two, you buy points.

The more you pay, the more points you get. But the concept remains the same. The sales pitch is that you can enjoy a week or two at a wonderful vacation site of your choosing.

On a recent vacation, I had an experience similar to yours. I was approached by a friendly salesman who asked me, "How would you like to have a free week here at this wonderful resort?" This piqued my interest.

He proceeded to show me statistics, highlighting what the average consumer pays over 10 years for vacations, compared with what it would cost if I joined his program.

He showed me a book that listed all the hotels and resorts that I could take advantage of if I signed up that day.

I advised him that I am a lawyer and would not sign anything until I carefully reviewed the sales contract.

The salesman told me that they did not have form contracts. "Why not just tell me how much you want to spend, and I will prepare the contract for your signature?" he asked.