If you want to become a timeshare owner, you might find the modern timeshare industry confusing with loads of complex terms. For instance, three significant kinds of timeshare ownership are deeded timeshares, right to use timeshares, and point-based timeshares, each providing its pros and cons. This article will take a look at deeded vs. right to use the timeshare. But first, check our list of the best timeshare exit companies whether you are willing to exit timeshare.
A deeded timeshare at the glance
A deeded timeshare refers to a form of timeshare ownership where an owner buys a specific unit of a vacation property for a particular period, usually one or two weeks. As a result, an individual owns the timeshare by receiving the deed to a specific unit of the property. It is worth mentioning that deeded timeshare contracts usually last for a lifetime, while the owner’s children or grandchildren can inherit the deed itself.
Another feature of deeded timeshares is that owners receive voting rights, making them capable of changing the resort work or setting the maintenance fees. In theory, owners of a deeded timeshare can sell their ownership or rent unused weeks out to offset the expenses on a timeshare.
What is a right to use timeshare?
A right to use timeshare provides individuals with the right to use the vacation property annually without directly owning the timeshare. The main pro of RTU timeshares is that contracts include an end date – the length of a timeshare ranges between 20 and 30 years, even though some of them are in perpetuity. In other words, after the expiration date, your ownership ends, regardless of whether you sell it or not. This feature can sometimes make it hard to sell RTU timeshares. Besides, a right to use timeshare offers a floating week, fixed week, or credit-formed system, making timeshare owners more flexible in terms of weeks for attending resorts.
RTU vs. deeded timeshare
When it comes to timeshare deeded vs. right to use, they significantly differ in multiple aspects. The most significant difference between these timeshare types is the ownership of the vacation property. Deeded timeshares allow individuals to own a fraction of the property physically, while RTU timeshares offer only the right to stay in a specific unit of the property every year. In short, once a timeshare goes out of business, timeshare owners still own their fractional property within a deeded property.
One more feature that distinguishes right to use vs. deeded timeshare is the influence of owners on their timeshare. As mentioned above, individuals within a deeded timeshare possess voting rights, capable of controlling resort operations, including setting fees. A right to use timeshares doesn’t offer such control over vacation property for their owners. Finally, RTU timeshares feature an end date of contracts, while deeded timeshares last forever in most cases.