Timeshare Property Assessments

A timeshare is a form of property ownership in which individuals purchase partial ownership interests in, or rights to use, accommodations at a:

• resort
• condominium
• apartment
• other facility

There are two types of timeshare agreements:

• Deeded agreements which allow the purchaser/owner the right to use the timeshare unit permanently.
• Right-to-Use agreements where the ownership remains with the developer and the purchaser is given the right-to-use the specific resort accommodation for a certain number of years. 

How your timeshare property is assessed

For new developments, MPAC references the sale prices of the units sold. The non-realty components of the sales are removed, i.e. marketing costs, club memberships and chattels. The adjusted sale prices form the basis of the valuation.

For existing developments, MPAC analyses the sales of units that have resold. These sales provide the basis of the valuation. If insufficient sales exist, the condominium market is analyzed to determine market fluctuations, which are in turn applied to existing timeshare values.

We use the direct comparison approach to establish the value of timeshare properties. This approach analyzes the sales of the timeshare units to estimate the value of a timeshare project.

In order of preference, the following sales sources are used:

1. Resales, within the timeshare development.
2. Developer sales, within the timeshare development.
3. Sales from a comparable timeshare development.
4. Sales from a comparable condominium development.

In order to compile a sales inventory for each development, we send a sales and data collection questionnaire to each developer requesting specific details about the timeshare project, including:

• description of units
• size
• amenities
• accommodation limit
• on-site facilities
• pertinent sales information

We review the completed sales questionnaires and adjust the selling price as follows:

• We discount expenses for sales and marketing programs for developer sales.
• We deduct 10% for chattels (furnishings in the units), as timeshare units are normally sold as fully furnished.  

We use these adjusted sales prices as benchmarks for the estimated value for all of the unsold units within the timeshare complex.

Where necessary, further adjustments are made to allow for differences between sold and unsold units, including:

• unit size
• accommodation limit
• number of bathrooms
• view
• location within the complex

In developments where insufficient sales information exists, sales from a comparable condominium complex or a comparable timeshare project are used to develop an assessed property value.