aruba surf club

What is RTU and how is it different from a Deed?

Thank you.

RTU, is "right to use" could be any time of year or with in a designated window of use. Deeded, a specific wk. every yr. or every other yr.(which ever is deeded) in a specific unit. One guaranties occupancy on a given wk., the other puts you in the pool with everyone else.

Peter -

Right to use ownership (RTU) grants the lessor the right to use the property for a specified period of time; usually from 20 to 99 years. The resort developer or Management Company holds ownership of the physical property. However, during the right-to-use period, the owner may rent, transfer, or bequeath the remaining years of their right to use property.

Deeded is property ownership with a deed recorded in the county where the property exists. This type of property has the same rights of ownership accorded to it as other deeded real estate. The owner may sell, rent, bequeath, or give away the property.

You can find these and other timeshare terms in our Timeshare Glossary

Phyllis

As a matter of correction / clarification to the input quoted below, RTU (right to use) is by definition NOT any form of deeded ownership. There is no deed in RTU and RTU involves no actual "ownership" whatsoever. RTU instead involves a CONTRACT providing only guaranteed periodic access. RTU contracts can be "open ended" (no expiration date) or they can be duration specific. Typically, for example, Mexican RTU contracts are generally for terms of between 15 and 30 years. I have no idea about Aruba, however --- the associated contract specific to the resort at issue will surely identify the term duration details.

williamp511 wrote:

RTU, is "right to use" could be any time of year or with in a designated window of use. Deeded, a specific wk. every yr. or every other yr.(which ever is deeded) in a specific unit. One guaranties occupancy on a given wk., the other puts you in the pool with everyone else.

peterg218 wrote:

What is RTU and how is it different from a Deed?

The previous posters have given you a great explanation. I would just add that RTUs are usually in countries where foreigners are restricted to some degree of owning deeded property. So to circumvent that, the developer will sell an RTU contract where the "owner" will feel like he owns vacation property but really just owns a contract to use property owned by someone else.

lancec13 wrote:

peterg218 wrote:

What is RTU and how is it different from a Deed?

The previous posters have given you a great explanation. I would just add that RTUs are usually in countries where foreigners are restricted to some degree of owning deeded property. So to circumvent that, the developer will sell an RTU contract where the "owner" will feel like he owns vacation property but really just owns a contract to use property owned by someone else.

Generally correct, but I respectfully submit that there are also RTU's right here in the U.S.A. I actually had one for a number of years myself (Perennial Vacation Club, based in Nevada). No deed, no ownership, just a open-ended contract which provided RTU reservation access (one week per year) from among about a half dozen different PVC owned property options located in different parts of the U.S. (plus one in the Dominican Republic) for a single reasonable annual maintenance fee. I acquired that RTU contract (resale, of course) for peanuts, sold it for even fewer peanuts about 5 years later. It worked well for us for those 5 years, largely because of the near-zero acquisition cost, but most "vacation clubs" (except Marriott, Hyatt, Disney, of course) are of little or no real value. Most have great difficulty reserving anything in desirable places and / or seasons. Most "no name" vacation clubs are, in fact, just a complete waste of time and money; they can (and sometimes do) just suddenly "disappear" into thin air without ANY advance warning. Poof --- GONE!