RTU Timeshare: What It Means and How It Works

RTU Timeshare Meaning

Timeshares come in several ownership types, as well as several sub- or usage types. One type of timeshare ownership is a right to use, or RTU, timeshare. RTU timeshares can be a great option for some buyers, especially those who don’t want to own their timeshare in perpetuity. But just what is a right to use timeshare agreement? Before you sign on the dotted line, it’s important you know exactly what you’re getting into. That’s where we come in. Fidelity Real Estate is here with everything you need to know, including RTU meaning, workings, benefits, and more. Once you’re an RTU expert, follow the link at the end of the blog to find your RTU timeshare today!

What Are Right To Use Timeshares?

RTU, meaning “right to use,” timeshares are non-deeded timeshare contracts and give you the right to use a unit for a set amount of time. This means that, unlike a deeded ownership contract, you do not actually “own” the timeshare. Rather, the terms of the contract legally bind you to the vacation property. The amount of years each timeshare contract lasts depends on the resort and brand. When you purchase an RTU timeshare, you know exactly when the agreement expires, meaning you are immediately aware of when you will no longer be under contract for that property.

Having an expiration date may give the owner a sense of relief. They can relax knowing that they aren’t bound to a contract for life. They will not have the burden of being responsible for maintenance fees or other costs forever. Unfortunately, some people on deeded timeshare contracts get into some financial trouble. This could simply be because they cannot afford to pay their fees for that long of a timeframe. RTU timeshares give owners the flexibility of a guaranteed endpoint.

How Do RTU Timeshare Contracts Work?

Unlike a deeded timeshare contract, which is like traditional real estate ownership, you “own” your RTU timeshare for a specific period of time. Owners are responsible for a deeded timeshare for life or until they sell it. The expiration date for an RTU timeshare is in the original contract. After that date, you are no longer legally responsible for that timeshare. The number of years of use for RTU timeshares is generally between 25 and 75 years. However, that number depends on resort location and brand.

Selling a Right to Use Timeshare

As with traditional timeshare ownership, you can sell an RTU vacation property or pass it along to your family. However, the contract term will still be the same as the originally designated length. For example, if you were to sign a 30-year RTU contract in 2021 but sold it in 2031, the new timeshare owner will only have 20 years of use. The same contract terms, including length, do not renew when it is resold; they will always remain the same. This may cause a bit of an issue when selling an RTU contract. For example, if you want to sell an RTU timeshare with only 7 years left, the new owners would only get to enjoy it for 7 years. This short of a contract might not pique a buyer’s interest.

RTU Timeshare Locations

Right to use timeshare contracts are often found in international destinations. This is because owners can’t legally “own” vacation property without a deed there if they are U.S. citizens. In fact, all timeshares in Mexico for example are RTU unless you are a Mexican citizen.

RTU Subtypes

Like all types of timeshare ownership, RTU contracts come in several subtypes, or usage types. Right to use timeshares are usually points-based, meaning owners can access different locations within their brand’s portfolio. However, they also come in the fixed-week variety, where owners enjoy usage rights during the same week every year. Moreover, an RTU timeshare may either be annual, meaning the points or week are available every year, or biennial, meaning every other year.

Types of Timeshares

Learn about other types of timeshares and discover which is right for your family at our blog!

Benefits of RTU Timeshares

People enjoy RTU timeshare contracts for a few reasons. Firstly, they know exactly when the end date of their RTU contract is when they sign, meaning there is a guaranteed way out of their timeshare. This is a more difficult situation to navigate with deeded contracts. This also means that owners know when they will stop paying maintenance fees, unlike deeded timeshares with owners who are responsible for fees even when they are no longer able to use their timeshare.

Deeded timeshare contracts may be in one family for generations. While one could see this as a lovely family heirloom, timeshares owned in perpetuity often cause strife for those who inherit them. Since RTU’s have a concrete end date, you don’t have to worry about your timeshare ownership being a burden on your loved ones.

Are Disney Vacation Club Timeshares Right To Use?

Disney Vacation Club timeshare contracts have an expiration date, but does that mean that they are RTU? Contrary to how it sounds, DVC timeshare contracts aren’t right to use! DVC contracts are leasehold, which is similar to RTU but not the same. The major difference between leasehold and right to use contracts is that, with a leasehold, you actually own the property for the length of the contract. This means that similarly to homeowner’s association fees, DVC owners pay annual dues that go towards the resort’s operating costs and real estate taxes.

DVC members own their timeshare until their home resort’s expiration date, which they agreed to when buying their contract. Sometimes, DVC will extend a resort’s expiration date and may offer current owners the option to extend their ownership. This is the only way that a DVC contract’s expiration date will change. If you buy a DVC timeshare on the resale market, you are agreeing to the original expiration date of the contract.

Want to learn more about how DVC points work?

Grand Floridian Resort and Spa

Timeshares For Sale

If you’re ready to take the first steps towards vacation ownership, we’re here to help. Browse our marketplace of available timeshare resale listings now! You can browse for specific brands and locations or by price. When you find a listing that you love, make an offer! Fidelity is a licensed brokerage with a team of expert real estate agents. For assistance in buying a timeshare, contact us today at 800-410-8326 or team@fidelityresales.com!

Sell Your Right to Use Timeshare With Fidelity Real Estate

Do you already own a right to use a timeshare or other type of vacation ownership? Want to list it on the resale market? Fidelity can help! As long-standing members of ARDA, with over 20 years of experience and an A+ rating by the BBB, Fidelity Real Estate is the trusted resale solution for owners looking to sell their timeshares. Our marketing experts can get your timeshare seen by interested buyers from around the world, while our licensed real estate brokers can assist you at every step of the closing process. Learn more about how to sell your timeshare, or fill out the form below to get started.

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