RTU timeshares are non-deeded and give you the “right to use” a unit for a set amount of time. This means that, unlike a deeded timeshare contract, you do not actually “own” the property. The amount of years each timeshare contract lasts depends on the resort and brand. To learn more about how RTU timeshares work, continue reading.
How Do RTU Timeshares Work?
Unlike a deeded timeshare contract, which is like traditional real estate ownership, RTU timeshares are purchased for a set 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.
With an RTU timeshare, you can still sell the property or pass it along to 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 owner will only have 20 years of use.
Right to use timeshare contracts are usually in international destinations because owners can’t legally “own” 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.
Benefits of RTU Timeshares
People enjoy RTU timeshare contracts for a few reasons. Firstly, they know exactly when the end date of their contract is when they sign. That means that there is a guaranteed way out of their timeshare, which 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 owners who are responsible for fees even when they are no longer able to use their timeshare.
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 the property is actually “owned” for the length of the contract with a leasehold. 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.
Timeshares For Sale
If you’re ready to take the first steps towards vacation ownership, we’re here to help. Fidelity is a licensed brokerage with a team of expert real estate agents. To assist you in buying a timeshare, give us a call at 1-800-465-5188 today!