Types Of Timeshare Ownership
Before registering for a timeshare agreement, it’s crucial that you know there are two types: shared deeded timeshares and shared leased timeshares. Depending on if you or a property management company holds the deed, you may face some limitations in your timeshare contract.
Shared Deeded Timeshares
When you obtain a deeded timeshare ownership, you will own a portion or percentage of the timeshare property, meaning there is no contractual expiration date. This means that if the developer goes bankrupt, you will still own your portion of the resort.
In addition, you will have voting rights on important topics such as maintenance fees. However, deeded timeshare owners are responsible for the upkeep of the shared space. This can include housekeeping, landscaping, repairs and improvements to the property.
Another perk of deeded timeshares is they are transferable, so you can sell them, include them in your will or give them away.
Shared Leased Timeshares
A leased timeshare, also known as a right-to-use timeshare, indicates that you don’t own the property, but you have the right to physically stay at the property for some time.
Unlike deeded timeshares, the person who sells you the right-to-use agreement owns the property. Leased timeshare contracts define how long you can use the timeshare – usually these are long-term contracts. Leased timeshare agreements can expire upwards of 20 years.
Since you don’t own property in this type of ownership, you won’t have any say in annual timeshare fees and if the property owner decides to raise them. The rules of the property and the maintenance and operations are all factors completely up to the developer. Additionally, if the developer ever goes bankrupt, you would lose your ability to stay at the property.
