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Informed Timeshare Decisions,

Deeded vs. Right to Use Timeshare Purchase Contracts

Navigating the timeshare market can be challenging. Understanding the differences between the different contract structures can often be confusing. However, it’s important to be clear on what you’re getting from each type of timeshare contract, as the system used will significantly impact what you receive and the obligations required of you.

There are essentially two primary ways timeshare contracts are structured:

When you sit through a timeshare sales presentation, the salesperson will likely promote the option used by their resort, while downplaying the reasons why you may prefer the other contract type. From their perspective, this makes perfect sense. After all, their only goal is to get you to buy their timeshare. However, this approach doesn’t allow you to make a fully informed decision about a purchase that will carry significant financial ramifications for the rest of your life. Therefore, it’s crucial that you understand the differences between these options before you sign a contract.

What Is a Deeded Timeshare Contract?

A deeded timeshare contract bestows partial ownership of the timeshare property. As part of this purchase, you’ll receive a deed to the unit. Because you receive actual ownership of the property, you’ll be afforded certain benefits:

However, it’s important to understand that ownership of a deeded timeshare continues in perpetuity. This means you’ll own your stake in the property for the rest of your life unless you sell it or can legally cancel the timeshare. In addition, your heirs will inherit the timeshare when you die, and they will then be legally responsible for the financial obligations stipulated in your contract.

Because the terms of a deeded timeshare contract continue in perpetuity, you’re signing up for a hefty financial obligation that will never end. Currently, the average cost of annual timeshare maintenance fees is $1,000, and this figure rises approximately 4% each year. Over the course of several decades, you can expect these fees to become exponentially greater, and you may reach a point where they are financially crippling. If you’re concerned about your ability to cover these rising costs into retirement when you may be living on a more limited income, a deeded timeshare contract may not be for you.

What Is a Right to Use Timeshare?

tropical resort at a right-to-use timeshareRight to use timeshare contracts don’t result in a true ownership of the property. You won’t receive a deed. Instead, you’re granted the ability to use the property in accordance with the terms stated in the contract. It is more of a renting/leasing arrangement, whereas in a deeded contract, you are actually purchasing a portion of the property.

With a right to use timeshare contract, the resort retains ownership of the property. As a result, you typically won’t have any voting rights regarding policies governing the way the resort is run. In addition, there may be more restrictions related to your ability to rent and sell your timeshare.

However, these restrictions are balanced by an important benefit. Right to use timeshare contracts don’t continue in perpetuity. While they are typically long-term agreements that last between 10-50 years depending on the resort, your contract will eventually expire. After the expiration date, you’ll be released of all financial obligations associated with the timeshare. In addition, the timeshare won’t be considered part of your estate. This eliminates the risk of saddling your heirs with an unwanted financial burden as part of their inheritance.

Ready to Move on From an Unwanted Timeshare? We Can Help

Regardless of the contract type you choose, timeshare ownership will always come with hefty financial commitments that continue to rise every year. If you’ve reached a point where your timeshare has become a burden, you have options. Timeshare Termination Team can help you get out.

Timeshare contracts are legally binding, and you’ll need a legal solution to break free of these commitments. That’s why we always work with a team of attorneys when designing your exit strategy. Our expert advisors will carefully review the terms of your timeshare contract in order to customize a plan that will ensure you safely, legally and permanently cancel your timeshare contract.

You’ll benefit from our exclusive You First Approach™ which places your needs front and center throughout the process. This philosophy is one of the primary reasons we’ve achieved a 100% success rate with thousands of clients looking to break free of timeshare ownership. Our unique approach provides:

Very few people want to be locked into the same vacation for decades, especially when this commitment involves a crippling financial burden. Even if you enjoyed great value out of your timeshare at first, there will most likely come a time when it no longer meets your needs. When that happens, Timeshare Termination Team is here to help you break free and begin living life on your own terms once again.

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Please contact us today to schedule a free consultation. Start your journey toward life without the constraints of timeshare ownership.

Ready to Get Out of Your Timeshare?

Freedom from your timeshare burdens is only a phone call or a click away. Schedule a free consultation with one of our Expert Advisors. They'll give you all the information you need to make an informed decision about your timeshare situation.

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