Deeded and Right to Use Timeshare
OK, so you would like to buy a timeshare and that’s why you are here looking for the top tips about timeshare purchases and the differences between deeded and right to use timeshare. Well you have arrived to the perfect blog post to help you get to the bottom of the differences between deeded and right to use vacation products. Here we go:
Deeded Vacation Ownership and Timeshare
Deeded or titled timeshare means that you legally own the fraction of the property in questions. More frequently, this is called fractional ownership, when you own a specific share of a property. Deeded vacation ownership may also refer to full ownership.
In the case of fractional deeded ownership, you will own a portion of the vacation property, usually 1 month or more, and may be divided into one twelfth portions (4 weeks), one eighth (6 weeks) or one quarter (3 months) or more. Deeded ownership means that the purchased share of the property is yours forever and can be left in a will, sold etc. You are responsible for paying for maintenance just like any property.
Often when you purchase deeded ownership, you will be able to vote in certain decisions at the property at large, just like in the case of any homeowners’ association or condominium administration. The benefit of deeded ownership is that you can enjoy any profit that accrues over time on the market value of your shared property, bearing in mind the cost of the property when you bought it.
Right to Use timeshare
Most people are not aware of this category in timeshare, although in most cases, it is the kind of timeshare you will buy from most notable timeshare companies these days, especially if you are purchasing from a vacation club.
Just as the name suggests, right to use timeshare means that you can use the property (whether that be a house, a condominium or a unit at a resort) for the time you purchase (whether that be divided into weeks or allocated on a points system). In the case of right to use timeshare, you do not “own” the property, but you own permission to use that property for a set amount of time each year for a set number of years.
Despite the fact that right to use timeshare means you do not physically own “bricks and mortar,” you can still sell your rights of usage or pass them on as inheritance. Contrary, however, to deeded ownership, the rights will expire after the designated term have come to an end.
Another variation on the the rights to use model, many vacation clubs and timeshare providers now offer members a points scheme to make right to use timeshare ownership easier and more flexible.
The way this works is that you buy a set number of points which you can then exchange for time in a particular unit at a property operated by the timeshare company or vacation club. Likewise, these points can be exchanged easily through international vacation clubs for destinations anywhere around the world. In these case, you do not own the title or deeds to any property, nor fraction, but the right to use one of the properties offered by your timeshare provider.
If you still have more questions about deeded or right to use timeshare, add a comment below.