A timeshare, in general terms, is a fractional ownership of property that is shared with other persons.
In Nevada, a timeshare is treated as real property and is transferred by a deed that is recorded in the county where the timeshare is located.
Back in the 80s and 90s, timeshares became very popular as an alternative to staying in a hotel on vacation. Timeshares continue to be marketed through high-pressure sales methods and an offer for a “free” weekend stay at a popular tourist destination, or at one of the timeshare resorts. To seal the deal, seller and buyer enter into a written contract for the purchase of a certain number of weeks during the year at one particular resort, or several resorts in different locations. Pricing is based on the location, type of resort and the number of weeks purchased. New owners agree to pay maintenance fees that increase each year, and which can be very costly.
Like other interests in real property in Nevada, a timeshare can be sold by the owner during their lifetime or pass to the owner’s beneficiaries through a will or a trust. There are some downsides, however. A beneficiary who accepts ownership of a timeshare must continue to pay the maintenance fees regardless of whether or not they use the allotted weeks. More importantly, when compared with other interests in real property, a timeshare seldom appreciates in value and are often difficult to sell.
In Nevada, if a person passes away owning a timeshare, a probate is required because the timeshare is considered real property. For example, an estate owning a timeshare valued at $2,000 must go through probate, the cost for which may exceed the value of the timeshare several times over. If you are considering buying a timeshare, read the contract, take your time and give it some serious thought before you sign on the dotted line.
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