Deeded Timeshare Vs Leased, Lease Or Non DeededTimeshare FAQ
What is a deeded timeshare, and what is a leased, lease or non deeded timeshare? Why would you use a deeded timeshare over a lease or non deeded timeshare?
Deeded OwnershipWhen a person has deeded timeshare ownership that means they physically own the property deed, or an actual deed for a certain percentage of the timeshare property.
Choosing a deeded timeshare ownership definitely has some advantages. You own it in perpetuity, and there is no expiration date for its use. Also, if for any reason the developer happens to go bankrupt, you would still own your portion of the property.
As a deeded property owner you also have a voting right for important topics such as maintenance/annual fee increases, special assessments, and operations within the resort.
Also, if you ever find yourself no longer willing or able to travel you are in luck because your timeshare deed is transferable, meaning you have the ability to give it away, sell it, or leave it to your heir in a legal will.
And it doesn't stop there... your family can continue to pass the deed for your timeshare or vacation home on from generation to generation, just like your own home.
Leased OwnershipLeased timeshare ownership is also often referred to as a right-to-use ownership. This means that you do not physically own the property, but rather, you have the right to physically stay at, or lease the property for a specified period of time.
Leased timeshare ownerships will have a specified number of years you can use them, and usually the lease has an expiration date ranging anywhere from twenty to ninety nine years from the date purchased.
Unfortunately with a lease contract, if anything ever happened and the developer went bankrupt then you would more than likely lose the ability to continue using the vacation home.
Also, a leased timeshare ownership means that the owner has no voting right. In other words, the developer has the control to do whatever he or she would like regarding annual fees, special assessments, and operations and rules of the resort.
And last but not least, because you do not physically own a right-to-use, or lease ownership, a leased contract does not allow for the timeshare to be passed down to your heirs.
Why Choose One Type Over The Other?While deeded timeshare ownership does tend to be the most sought after type of ownership, some places have laws that forbid foreign ownership of property.
The United States tends to have more deeded timeshare ownership, and places like Europe, Hawaii, Mexico and other parts of the Caribbean tend to be leased ownerships.
If you are going to choose to enter the world of vacation home ownership, be sure to take the time to do your research. An educated owner is a happy and confident owner.