RTU vs Deed

What's the difference between the two types of ownership?

Deeded Property: True 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 (i.e. your home). The owner may sell, rent, bequeath, or give away the property.

Right to Use (RTU): A lease, or right to use contract 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.

Most (but not all) of the timeshares in the U.S. will be deeded ownerships, while outside the U.S. the contract will almost always be RTU.

phyl21 wrote:

Deeded Property: True 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 (i.e. your home). The owner may sell, rent, bequeath, or give away the property.

Right to Use (RTU): A lease, or right to use ownership 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.

Most (but not all) of the timeshares in the U.S. will be deeded ownerships, while outside the U.S. the ownership will almost always be RTU.

A very good explanation, but in specific regard to the final words of the last sentence above I respectfully submit that the word "ownership" is incompatible with the concept of RTU, since there is NO ownership of ANYTHING in RTU. RTU is more like a "membership", which provides access to "members" who execute (and pay for) a finite date contract.

Good catch, Ken! The last sentence has been edited.