I'm about to buy a timeshare. One of my friends suggested me to go for a 'deeded' timeshare rather than a 'right to use' one. I also did some research and found out a couple of experts suggesting the same. Is it that big a deal? How is a deeded timeshare better than a right to use one? I would like to get some comments. Thank you.
Thanks very much guys. Actually, I'll be buying a timeshare in the US so I can afford to look for a deeded timeshare I guess? All your responses were informative and I really appreciate that. Thanks again. :)
Thanks for the comments guys. But I've got a doubt now. If a deeded timeshare is better, why would anyone go for a right to use timeshare? Why can't everyone get hold of a deeded timeshare? Apart from the fact that it's their personal choice, is there any other reason? I'd like to know. Thanks.
You can't expect to buy a deeded timeshare everywhere. A lot of foreign countries have very strict rules regarding foreign ownership of timeshares. The best known example for this would be Mexico. These countries either don't allow foreigners to own timeshares or have very strict regulations regarding the same. So, a right to use timeshare becomes the only option in these cases. I hope it clears your doubt.
Thank you Vacationguy. That was really helpful. I appreciate it.
Actually, not many people know that even a right to use timeshare can be sold, rented out, or passed on to their heirs. The only difference is, it will be valid only for the particular period of time. If you bequeath your right to use timeshare to your kids, they will be able to enjoy it till the contract expires. The only problem is that you never really "own" the property. It is for this reason that when the developer goes default, you will lose your rights over the timeshare most of the times. But there have been cases where people have retained their rights even after the developer went default. So, you can look at it both ways and at the end of the day, it's your personal choice.
There is a problem in going for right to use timeshares. If the developer were to go bankrupt or something like that, you would lose your right to use your timeshare. I understand it's highly unlikely to happen, but it has happened before. So, you've gotta give it a little thought. If it's a deeded timeshare, your deed would still be valid under any circumstances. So, IMO, it's not worth going for right to use timeshare.
Without getting into the question of which is better, let me first explain you the difference between deeded and right to use timeshares. A deeded timeshare is just what the name implies - you get to own the deed for the timeshare. It is very much like a real estate ownership which can be sold, rented out, given away, or passed on to heirs. This serves as the biggest advantage in case of deeded timeshare.
A right to use timeshare gives you the right to use it for a particular period of time, after which it becomes the property of the actual owner again. It will be on a contract basis and after the stipulated amount of time, all rights on the timeshare will revert to the owner.
Now, it's up to you to decide which will work best for you. I'm refraining myself from commenting on the advantage/disadvantage of these timeshares, because it depends on your situation. Good luck.