The two most common types of timeshare ownership are “deed and title ownership” and “right to use ownership“. “Deed and title ownership” usually refers to timeshares where use of the timeshare resort is divided up in weeks. The fractional owner of any set week in deed and title ownership has rights to that real property and can use the week, rent the week, give it away, or leave it to their heirs. “Right to use ownership” is a type of contract, not an actual deed, and the timeshare owner has the right to use the property in accordance with the contract for a specific number of years. Both deed and title ownership and right to use are found in vacation clubs and points programs.
“Deed and Title Ownership” or “Interval Ownership“
- Buyer acquires real property that is a tangibe asset – you may rent out your week, use your week, give your week away, and will it to your heirs.
- No matter what happens to management or resort, you still own your time.
- It is for a specified length of time each year, usually at a specific resort.
“Right to Use Ownership” or “License to Use“
- Buyer acquires usage rights at a particular resort, for a particular week, ending after a specific time span.
- This is basically a contractual promise by resort management that you will get what you paid for – this is only as good as the integrity of the promiser.
- No tangible real estate is purchased.