Owning a timeshare in Europe can be heavenly. But be careful: Just as in the States, some timeshare companies will try to give you the hard sell, and some may advertise resorts that aren't yet completed.
Plus, the rules and regulations that govern timeshares overseas are not the same as those in the U.S. When you buy a timeshare in the U.S., you actually own the property; in Europe, you have a long-term lease.
Timeshare groups in Europe are trying to emulate the rules that govern U.S. timeshares, which, says Howard Nusbaum, chief executive of the American Resort Development Association, are clear and easy to enforce. Meanwhile, says Nusbaum, an American buying in Europe should do extra due diligence.
For example, U.S. timeshare companies are required to keep cash reserves to pay for unexpected damage, such as wind damage to a roof. "That's not necessarily the case in European countries," says Dave Sampson, a partner at the law firm of Baker Hostetler in Los Angeles and an expert on international timeshares. So you could be hit with an unanticipated repair bill.
Better laws have made it easier for buyers. The 10-year-old European Timeshare Directive requires a 10-day cooling-off period, during which you can withdraw from a purchase. It also calls for full disclosure, which means, among other things, that a contract must be written in your native language. In Spain, the law spells out what must be included in contracts, and if anything is missing, the cooling-off period grows to three months.
The cooling-off period is helping to kill the hard sell, says Sue McNicol, head of operations in the United Kingdom for the Organization for Timeshare in Europe (www.ote-info.com), an industry trade group that works to raise timeshare standards and ethics. But while progress has been made, work still needs to be done. The Timeshare in Europe group puts the number of satisfied timeshare owners in Europe at just 50 percent.
The easiest way to deal with foreign regulations is to buy through U.S. companies, such as Marriott and Hilton. Otherwise, consider hiring a lawyer in your destination city for advice. Just as with houses, timeshares are sold through a multiple listing service that's available to real estate agents. To contact an agent who specializes in timeshares in the area where you want to buy, go to www.tsxchange.com and click on "contact us."