Right to use is similar to a long term lease. It is a contract between you AND THE COMPANY that owns the property. It can be called a leasehold, too.
It is more popular in countries outside the USA, because sometimes a rule in these countries don't allow foreigners to "own" real estate anywhere, or in certain areas.
You need to know when the RTU ends, because in almost ALL cases, you will no longer have rights to use the property. One exception I know of is the Royal Resorts in Cancun. Most of them will give the last owner a residual cash payment at the end of the RTU.
Disney Vacation Club is also a Leased Right to Use. It is in the USA ( Orlando, Vero, HHI). Brought out often on the tug site is the fact that the leasees pay Disney for the maintance and assessments of the units. ( They buy a set of points that is backed by a unit somewhere). Recently, DIsney offered an extension on the RTU for a 'special' payment per point when the first RTU runs out. Of course the CPAs on tug said not to do this ( too far in the future) and buy an equiv amount of Disney Stock, instead.......I thought that was kind of funny.
A standard deeded property ( most kinds) indicate YOU own the unit and a peroid of time in that unit. Some developers play games and sell the units, but keep the rec areas under their ownership. You need to make sure you are buying the unit and all associated real estate. Most new deeded units ( Weekly or fractional) will have a cease of timeshare in the contract. It will have a date many years out, indicating the owners will need to meet and determine if they want to continue to run the property as an interval or sell it, or convert to full time codos, or whatever.
They will they pay you an amount on a % basis of what you owned. I remember one beach place the owners did very well. But don't worry, some developers will figure out how to stick it to them again 60 years after grandpa left it to the family.
Deed = You own Real Estate. YOU vote for an HOA. The HOA is supposed to look after the best interest of the owners. If there are a lot of unslod, foreclosed weeks, the management or developer may end up controlling the HOA. Stay away.
Hope this helps. Am sure I might have twisted or left out something. Maybe a realtor has more info.
Kenneth K.
