What Does It Mean For A Timeshare To Be Deeded?

As a potential buyer of a timeshare property, it is advisable to educate yourself as much as possible. There are varying levels of financial commitment, but no matter how much you ultimately end up owning, being knowledgeable about what you are purchasing is very important. Over the last 20 years there have been many changes to how timeshares are used within each of the popular vacation clubs, however many timeshare clubs still feature a deeded ownership.

What You Own When Purchasing a Deed

It used to be that when you purchase a timeshare, you were most likely buying a deed to a specific week, unit size and resort. This week would correlate with the number of weeks in a calendar year, starting with the first week in January as Week 1. This can be referred to as your home week, and in many cases, owners have guaranteed access to the week, resort and unit size, as shown on their deed. Typically, owners must reserve their home week within an allotted booking period, and if that does not take place, the rest of the club gains access.

Booking periods will be covered in greater detail later in this article. A majority of deeds allow their owners access to their ownerships each year for as long as they own the deed. Deeds may stay in the owner’s name for the remainder of the their life and can be gifted, willed, or owners have the option of selling their deed to a third party on the resale market. This is not the case for all deeds. Some allow owners the use of their property on specific years such as odd (ex. 1999, 2001, 2003) or even (ex. 2002, 2004, 2006) years or even every third year.

Also, some deeds actually expire at a set date, at which time, the owner’s rights to the property are terminated. For example, Disney Vacation Club is popular for employing right-to-use deeds for their ownerships. Below, we’ll be exploring the many different types of deed timeshare ownerships offered on the resale market.

Types of Deeded Ownerships

Points-Based

The two most recognizable timeshare clubs that use a deeded points-based system are Hilton Grand Vacation Club and Hyatt. Although they vary slightly, the overarching concept is still fundamentally the same. Points-based deeded ownerships give owners more options outside of their specific week, unit and resort location. These clubs award points to owners for the properties that they own. Each property within the Club’s collection of resorts have a level of desirability and value. And within each property, specific weeks are more desirable than others, and thus cost more in points to reserve. Below you can view the number of points needed to make a reservation for a specific unit size:

Once you become an owner, you can use your points to book reservations at any resort within your Club’s collection of resorts. This is done within specific reservation periods. Each club has different rules about when and how you can book vacations but the one commonality is that each gives owners a home reservation period in which they are guaranteed their home resort. Once their home reservation window is over, their ownership is essentially turned into points that can be used elsewhere, often referred to as Club Use Period, or Club Reservation Window. There is a large amount of flexibility with this style of timeshare club and many of the timeshare brands are moving toward the direction of a points-based system.

Floating Week

Floating week ownerships give some flexibility to owners within their home week reservation period. Rather than having to book the exact week associated with your deed, you may book any week within the season you are in. Marriott Vacation Club is a perfect example of this type of deeded ownership. Prior to the switch to Destinations Points, Marriott sold, what have now become referred to as, ‘Legacy Weeks.’ These Legacy Weeks were deeded ownerships with floating weeks that could be booked within your ownership season. There are still timing restrictions and booking periods like other clubs. Floating weeks give owners a little more flexibility outright without having to wait until the weeks become available to everyone else.

Right-To-Use Ownership

Right-to-use ownerships are different than deeded ownerships because they feature an expiration date whereas deeded timeshare ownerships are perpetual and do not expire. Many resorts in Mexico feature right-to-use ownerships because of the laws not allowing foreign ownership of property. When signing the purchase agreement, buyer will know exactly when the contract is terminated.

Non Deeded Ownerships

Trust System

Some timeshare clubs do not offer a deed to a specific property or resort. Instead, you buy into a collective timeshare trust. Marriott’s Destinations Program is a well-known trust system among the timeshare clubs. When you buy selected increments of points or beneficial interests, your purchase is in to the entire trust and you own a small portion of the whole trust. How does this relate to timeshares? Buying into a trust gives owners access to the entire club, rather than one property. There are no owners who have first rights to home resort reservations and each reservation is first come, first serve. Dues and fee are also spread out among all the owners based on the number of points owned. The more points you own, the more due and fees you will have to pay. Because there are no deeded weeks, the points are awarded to owners each use year, as long as they are in good standing with the club.

Final Comments

There are many types of deeded timeshare ownerships that are available to buyers. It is important to keep in mind that you should purchase your timeshare ownership based on how you and your family are going to use your ownership. There are a wide variety of vacation clubs, so be sure to educate yourself on all your options. If you have questions about deeds or would like more information about a vacation club, you can contact us for a free consultation.