If you are looking to spend your holiday in one of Italy’s mesmerizing locations, you might want to consider opting for a timeshare contract in lieu of purchasing or renting a property. Timeshare is defined as an arrangement whereby several joint owners have the right to use a property as a holiday home under a time-sharing scheme. This joint ownership form of vacation property can be applied to a wide range of properties, including apartments, condominiums, and resorts.
How many types of timeshares are there?
There are three different categories:
1. TIMESHARE PROPERTY (“Multiproprietà immobiliare”)
This option entails complete ownership of a dwelling unit and the permanent and inalienable right to use the property for a specific amount of time each year. In this case, each one of the multiple owners of the property enjoys the property during a specific time of the year, thus no one shares the property at the same time.
2. TIMESHARE STOCK (“Multiproprietà azionaria”)
This option entails the formation of a corporation whose capital comprises ordinary shares and preference shares. As a result, the real estate compendium is held by the firm rather than by individual stockholders. Each corporate shareholder, on the other hand, can own a real estate unit.
3. HOTEL TIMESHARE (“Multiproprietà alberghiera”)
In this case, the shared property is not a regular house, but a hotel. The multiple owners can either be private individuals (such as in “timeshare property”) or a firm (as in “timeshare stock”).
Among the main rules are the following:
- the property must be used as a holiday home only;
- you cannot renovate the property and must keep the furniture;
- third parties cannot access the property while one of the co-owners is using it.
- if the timeshare property is a condominium which is managed by an administrator (or a management firm), the owners are responsible for both the overall building and the individual real estate units.
How do you draft a contract?
A timeshare contract is stipulated before the Notaio (“Notary”). The contract must be in Italian or in one of the languages of the EU member state in which the customers reside or of which they are citizens, otherwise, the contract will be considered null. The contract will outline the buyer’s personal information, the terms and conditions of the transaction, and it will need to be signed by all the parties involved in the transaction. If the buyer decides to withdraw from the contract, they must communicate so in writing, and they have fourteen days to do so without the need to provide a reason. In this regard, prior to signing the contract, the seller must send the buyer a specific form which indicates how to exercise the right of withdrawal.
What are the benefits of timeshare agreements?
Most timeshares properties are owned by large corporations in desirable holiday locations and timeshare owners have the peace of mind of knowing that they can spend their holidays in a familiar location every year without any unpleasant surprises. Timeshare properties also often have resort-like amenities and services, facilitating a more comfortable stay, and many choose this option to avoid the hassle of booking a holiday each year. Therefore, the benefits of choosing a timeshare contract can be summarized as follows:
- you can purchase properties in exclusive locations;
- all premises are shared among the various co-owners so the overall cost of the property is very low;
- all the chores are delegated to a management business that handles all expenses on behalf of the co-owners;
- you can also rent the property, sell it or host a relative or a friend through a simple cover letter.
In conclusion, if you would like to learn more about timeshare agreements and you are interested in purchasing a property in Italy, do not hesitate to contact us at: info@italianrealestatelawyers.com
