Many owners of timeshares sign the initial contract thinking that they will have yearly vacations at some luxurious resort. Others prefer timeshares so they can exchange their points for stays at various resorts across the country.
But owners of timeshares often ask the question, what did they actually sign up for?
Typically, purchasing a timeshare involves three different types of ownership; namely, leased, deeded or right-to-use. These types are also known as points-based systems.
Deeded Timeshare Ownership
When a person owns a timeshare by deed, they actually own just a percentage of the overall timeshare unit. This also means sharing the timeshare ownership of some common areas of the resort. Being the owner of a deeded timeshare carries many rights along with responsibilities. Deeded ownership is usually owned in perpetuity and is also transferable.
Speaking of which, in transferable deeded timeshare ownership, you have the right to give away the timeshare (if the buyer takes over payments or if it is paid in full), to sell off the timeshare, and potentially leave it for heirs if included in a will.
Just like the lease of a property, a leased timeshare is not sole ownership of the timeshare. Unlike freehold ownership, a leased timeshare does not offer the right to sell, rent, or pass on to heirs. It only provides you with the right to use it for a particular time period. This could be just a week or a number of years, ranging from 15 to 75 years. As soon as the leased timeshare ownership expires, the right to use the space is also terminated. This causes the resort to return to the previous selling state.
After deeded timeshare ownership, right to use (RTU) ownership is the most popular type of timeshare ownership. However, right-to-use ownership timeshares operate slightly differently from other traditional ownerships. In RTU timeshare, you purchase your right to use the timeshare for a particular and agreed length of time. You remain bound to this timeshare by your contract terms.
However, a right-to-use timeshare ownership comes with an expiration date. This indicates the completion of the agreed contract. However, you can easily re-sign the contract to maintain your ownership. Otherwise, you also get an option to simply release yourself from further obligations. This type of ownership is preferable for you if you don’t want to have a life-long commitment to the timeshare.
All three different types of timeshare ownership have their own advantages and disadvantages and come with different sets of obligations. So before you make your final choice of the timeshare ownership, make sure you consider all your options. Consider the maintenance fees and rising annual costs before you decide to purchase a timeshare whether it is for a week or is a life-long commitment.
If you need an out from your timeshare, consult with Timeshare Freedom Group. We have helped hundreds of clients ditch their burdensome timeshare agreements; call us today at (866) 668-6872 for a free consultation!