deeded or right to use?

What is the difference between the two and what are the advantages/disadvantages?

Deeded is when you own the actual deed to the week (as in real estate) and it can be passed on to your heirs.

With right to use, the timeshare purchaser has the right to use the property in accordance with the contract but at some point the contract ends and all rights revert to the property owner. In other words, the right to use contract grants the right to use the resort for a specific number of years. In many countries there are severe limits on foreign property ownership, so this is a common method for developing timeshare resorts in countries such as Mexico. Disney Vacation Club is also sold as a right to use. Care should be taken with this form of ownership as the right to use often takes the form of 'club membership' or right to use the reservation system. Where the reservation system is owned by a Company not in the control of the owners, the right of use may be lost with the demise of the controlling Company.

I've never really understood why anyone would pay good money (many times developer price) for a 'right to use' week since you don't actually own it.

This is what I suspected. Thank you for the clear explanation.

Right to use has two flavors, perputual use versus one with an expiration date. Pertpetual use is as good as a deed and is very popular in the Caribbean where deeding is very difficult and costly.

In the USA, folks with leases get spcial protections not normally available to lease holders due to timeshare-specific consumer protection legislation Reagan signed into law in 1986. So it is largely a lie told by timeshare sales folks of deeded properties that they are "better".

Most leases give you all the rights of a deed from the beginning including the rights to rent, sell, or bequeath your lease rights to your heirs.

John Faeth Faeth Closing Services Inc.

I would like to sell my vacation club "timeshare" from the Occidental Allegro Playacar in Playa del Carmen, Mexico. I don't know anything about this, so do I need an actual "closing" to sell this? Do I own something I can actually sell? I believe it is a right to use, but perpetual, or so they told me that I could bequeath it. I can't go anymore and would just like to sell it for what I paid for it. How do I even start this process? The resort itself won't even answer my letters!

It's VERY DOUBTFUL that you will get back what you paid for it. You probably won't get back but a fraction of what you paid the developer IF you should find a buyer. That's the problem with buying developer timeshares, once you walk off the showroom floor (after the presentation and closing process) your purchase has automatically devalued several thousand dollars.

pattil33 wrote:

I would like to sell my vacation club "timeshare" from the Occidental Allegro Playacar in Playa del Carmen, Mexico. I don't know anything about this, so do I need an actual "closing" to sell this? Do I own something I can actually sell? I believe it is a right to use, but perpetual, or so they told me that I could bequeath it. I can't go anymore and would just like to sell it for what I paid for it. How do I even start this process? The resort itself won't even answer my letters!

I didn't pay all that much for my timeshare. It was one of those situations where they came out from behind Door #2 and have a membership for sale that has been "renegged" on. I honestly don't care what I sell it for. I just am in the position where I can't go anymore so I'd like to try selling it. It's paid for. I just pay $225 maintenance fee every other year. No big deal. If I can't sell it, I'll keep it for that price. Just wondering how you go about selling something that isn't tangibly yours (like a house, a boat, a car.) If I find someone who is interested in buying it for, say, $3,000, can't I just contact the resort and have them take my name off it and put in someone else's name? That's what they claim you can do if you "will" it on. I don't see how there can be a closing and all of that. Any info would be appreciated.

Hi Patti,

A timeshare is a legal interest in real estate or a membership in a club. Here are the three things you get from using a closing company (or a lawyer - costs more).

1) Escrow account - the seller and buyer are financially protected by having a state-regulated company hold the money in an account at a major bank until the transaction is completed.

2) A legally binding contract of sale so that neither party walks away halfway through the deal.

3) Dealing with the Mexican timeshare company to effectuate the transfer. All Mexican timeshares involve obraining and completion of the devloper's transfer paperwork. This paperwork must be completed by all parties and it takes a certain amount of effort to obtain and get back to the resort.

Deeded timeshares are even more work (almost none in Mexico are deeded bacause of ownership laws). Then a legally correct deed has to be prepared and filed with the government.

One can do it themselves, that's what I did for a long time before I started my company. It's just a lot of work and knowledge to do it right. And the hope that you get your money.

As to selling it, the place to start is running an ad right here on redweek.com. Be wary of any brioker who asks for up front money (all scams).

Thanks for your reply. I had some guy from SellMyTimeshare hounding me night after night about listing my timeshare with him for $500 up front. And he kept telling me that the only thing I'd have to worry about was "fending off all the offers I'd be getting." Ha! Was this guy a numnutz or what? I told him that if he was selling so many timeshares, then why not take his fee off my selling price when it sells in 10 minutes? I guess he couldn't do that. Trying to sell my right-to-use timeshare seems like a lot more work than it's worth. I may end up eating the $225 maintenance fee every other year.

Patti, I too have a floating week in Cozumel at the Melia that I have had for 10 years and have been to once. We have banked it through RCI each year and have had mixed results with them on what we wanted to trade for. I am at the point of also going to try and sell our "right to use week" and just buy another place on the texas coast closer to home and will use more often. Please post any new info you may get on selling and I will do the same. It seems the best way to sell is on Redweek from some of the other postings. Just need to find out what paper work is involved.

pattil33 wrote:

Thanks for your reply. I had some guy from SellMyTimeshare hounding me night after night about listing my timeshare with him for $500 up front. And he kept telling me that the only thing I'd have to worry about was "fending off all the offers I'd be getting." Ha! Was this guy a numnutz or what? I told him that if he was selling so many timeshares, then why not take his fee off my selling price when it sells in 10 minutes? I guess he couldn't do that. Trying to sell my right-to-use timeshare seems like a lot more work than it's worth. I may end up eating the $225 maintenance fee every other year.

John, I am trying to sell my week at Villa Del Palmar in Cabo San Lucas. Right of Use. I am a little concerned about the paperwork I currently have (if it's all I need). I wanted to post my week for sale her at a "moving" price, but I am thinking I need to know what to do if ever agreed with someone on a price. In other words, once we agree on a price, how do we proceed with a right-of-use type of week? Thanks. Daniel

danielc169 wrote:

John, I am trying to sell my week at Villa Del Palmar in Cabo San Lucas. Right of Use. I am a little concerned about the paperwork I currently have (if it's all I need). I wanted to post my week for sale her at a "moving" price, but I am thinking I need to know what to do if ever agreed with someone on a price. In other words, once we agree on a price, how do we proceed with a right-of-use type of week? Thanks. Daniel

You would do the same for a RTU that you would for a deeded week. Find a reputable closing company and let them handle all the paperwork.

Right to Use can be good for some because it is all that a particular place they like to visit offers. There are some laws against owning deeded property in locations you are not a citizen. Also, DVC (Disney vacation Club) is RTU. While in theory deeded is better, sometimes RTU is all we get. plus lots of RTU can be gotten dirt cheap w/in 10 years of exp, which I guess makes sense. If you are overwhelmed by the paperwork it is worth the closing company. Otherwise some would say quit claim if the buyer is willing. I think the rsort is the main entity exchanging the membership and once buyer verifies its transferable, is it not just a matter of paperwork? jim

I bought "right to use" at Pueblo Bonito in Mazatlan, second hand off of red week. I got a very fair deal and liked the RTU because a lot can change over the years. At the time that I bought, there was 14 years left. My kids wil be older and may want to change locations or resort at that time. I liked the idea of not being stuck with somthing I did not want and couldn't get rid of. This was my first TS purchase and have been very happy