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MONEY TALK Wednesday February 1991 Timesharing can lead to financial pitfall Timesharing the buying or long term leasing of a few weeks of vacation accommodation every year at the same time in the same unit has been offered in more and more major holiday locations over the past decade But experts at the Ministry of Consumer and Commercial Rela tions MCCR warn holidaying consumers who are tempted to buy a timeshare property to make sure they know exactly what theyre getting into In a worstcase scenario a buyer may pay thousands of dollars for a condo that doesnt even exist says Gordon Randall Registrar of Real Estate with Ontarios con sumer ministry And our ministry cannot assist the con sumer because the contracture agreement was made outside our jurisdiction he adds Some consumers have lost money to fraud artists who pre sent glossy brochures describing beautiful resorts in a vacation area other than the one they re currently visiting When they show up to stay at their unit they discover there s no such address Randall says the consumer only real protection against this scam is to never buy a timeshare unit without having seen it Even if the developer is legitimate we caution con sumers about signing contracts for many thousands of dollars in a place where they know nothing about the legal system he ad vises Those who don have the contract carefully checked by an independent lawyer could find that if the resort s roof caved in theyd be responsible for replac ing it They might also find they could be liable for any accidents on the property or any number of other legal nightmares Some timeshare unit salespeo ple have been known to discourage buyers from looking for legal help before they sign or to suggest using the companys lawyer But experts at MCCR say the best choice is an Independent local lawyer Sending the contract back home which is much easier than it used to be now that most offices have facsimile machines for your own lawyer to see it isnt a bad idea either says Randall But its usually best to consult someone who knows the local legal system One of the most common com plaints among those whove had a bad experience with timeshares is that they got in over their heads financially without ever having planned to buy the unit in the first place Promoters know that people on holidays may be less likely to be on their guard are willing to spend money and are thinking about future vacations says Randall Sales representatives will com offer a gift or a free trip if potential buyers will watch a sales presentation While this may sound like a good deal at the time two hours later many con find themselves bom barded by a high pressure sales pitch The agents are well rehearsed and know their best chance or making a sale is to per suade the consumer to buy quick Many who own timeshare units are happy with them saying the system provides convenient ac commodation in a place they like They prefer timesharing to buy ing a condo which requires a much larger financial invest But some less satisfied con sumers say prices arc too high for what they get The average timeshare apartment is sold for 50 weeks a year with the rest of the time used for repairs and ser vice At an average price of per week the furnished apart ment is being sold for plus maintenance fees Randall says anyone interested in finding out more about timeshares should consider the following points No matter how beautiful the resort may look in the promoter brochure never sign a contract until you seen the property Good Value When it comes to good value means a wide choice of flexible investment options special security features unique to a life insurance company competitive rates Good value also means having your policies backed by a company you can trust The Cooperators Weve built our reputation by providing sound financial investment advice for over years Thats just one of the reasons why were Canadas leading multiline insurance company with more than 350 offices nationwide Call The Cooperators for RRSPs Good Value From People You Can Trust co operators InsuranceFinancial Services EOBGETOWS 8770131 mm yourself likely to enjoy coming to the same place every year for your holidays Promoters may say it easy to trade your time in one unit for others all around the world but its often difficult to ar range a swap for a popular area Will the unit continue to be the right size for your family It may not be easy to upgrade or downscale accommodation once youve bought Some people say timesharing is a good investment But experts say the majority of timeshare rondos do not go up in value enough to be considered a wise in vestment Resale may be dif or impossible Take a good look at the quality of the facilities furnishings and maintenance If the salesperson says There s a pool going in there next year the appearance of the resort should give you con they re serious about making improvements Read the contract or purchase agreement carefully Is there a coolingoff period if you want to change your mind Is it fee- simple meaning you really own the property or right touse which gives you only the holiday time for the Individual unit Make sure you wont be held liable for financial problems of the resort company Also you should have title insurance to guarantee you keep possession of your unit even if the company goes under Find out how much maintenance fees will be during your annual visits If they in crease periodically how is the new price calculated Once youre sure you unders tand all the terms and conditions of the agreement find indepen dent legal assistance to make sure you havent missed anything An accountant ex with timesharing can warn you of possible financial pit falls Consumers wishing to receive the brochure Shop Smart If Pays which lists the titles of ministry booklets on a variety of consumer issues are Invited to write to the Consumer Informa tion Centre 555 St 1st Floor Toronto Ontario M7A 2H6 TERM PERSONAL DEPOSITS LOANS BUILDING FOR NOW AND THE FUTURE ASK US ABOUT PRIME RATE ON LOANS Refers To A Year Loon Available Until March 1st SEE US FOR A NO FEE COMPETITIVE RATES HALTON CREDIT UNION GEORGETOWN 187GuHphSt 8776926 ACTON 273 Queen St 8530911 THE CREDIT UNION BELONGS TO YOU AND ME