The Timeshare Conundrum: Deeded or Right-to-use?

Unless you’ve just passed the bar exam, signing up for a timeshare is something which could potentially transform your life – for the worst. While these schemes can be absolute godsends for some families who want that dream getaway every year, in other instances they can drive buyers to financial ruin.

They are complex, and unless you can afford a lawyer to mull over every little detail with a fine tooth comb, they’re risky as well.


Unfortunately, even if you read this article from head-to-toe you are not going to become immune to the pitfalls that can arise from these deals. However, if you can at least distinguish between the two main types, deeded and right-to-use timeshares, it will provide a footing to choose the right deal for your family and hopefully create many happy memories abroad…

Deeded Timeshares

Anyone who has an ounce of knowledge about property will probably grasp the deeded timeshare concept pretty quickly. In short, you’ll be purchasing a stake in the property, and this dictates both your financial say-so as well as how much time you’ll get to use the property every year.

For example, let’s say you own a 10% deeded timeshare. In essence, this will allow you to use the property for just over five weeks of the year – but you’ll also have to pay 10% of any maintenance charges or other fees that are imposed on you.

However, there are some differences between a deeded timeshare and your standard property deal. As you’ll be sharing the property with numerous other owners, don’t suddenly whip out the magnolia paint and start making drastic changes. You are obliged to stick to a set of usage regulations, and this makes this option a little limited for some families. Still, you will get all of the other mainstream benefits, such as being able to rent out your weeks to other people or just being able to sell your stake when you feel the time is right.

As such, the deeded timeshare is flexible, although you should prepare to fork out a significant initial sum, and also realize that you’re stuck with the same property for the foreseeable future.

Right-to-use Timeshares

That last sentence may have sent alarm bells ringing amongst some readers, who may not particularly want to visit the same resort every year. This is where the right-to-use timeshare comes in, with many of the developers behind these schemes having a whole arsenal of resorts at their disposal. It means that no holiday ever has to be the same – which is one of the reasons why the right-to-use option is slowly on the rise.

Another major benefit is the cost. In the previous example you were practically buying a share in a property, which naturally meant that you’d have to fork out thousands. In the right-to-use cases, this doesn’t occur and you are simply leasing x amount of weeks from a developer, for a specified number of years. This means that they’re perfect for those that aren’t looking to make an investment, but just reap the holiday rewards that timeshares can offer.

Therefore, it’s plain to see that these timeshares really do target different types of buyers. Looking to potentially make some money in the future, but also experience some great holidays in the process? The deeded option is for you. Alternatively, if you’re just looking to boost your traveling experiences, the right-to-use solution will most probably suffice and is much cheaper.

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