Know What You Own: Understanding Different Types of Ownership
January 20th 2015 Posted by: SellMyTimeshareNow SMTN Category: For Owners

The timeshare industry has seen a great amount of growth since its start, and with growth comes adaptation. Vacation ownership developers have adopted a number of different types of ownership classifications over time in attempt to better accommodate owners’ vacationing needs and offer greater variety.

While there are minor differences between each ownership type, it is important to understand exactly what you own when it comes time to sell your timeshare, to pass it down to your children, or for general assurance in knowing what you spent your hard-earned money on. Below, read up on the several types of timeshares to determine what you own..


The most common timeshare ownership structure, a deeded vacation ownership interest conveys all the rights assigned to a traditional parcel of real estate. Legal title is granted in perpetuity and recorded with a land court, and owners retain a shared interest in their unit and all applicable common areas.


This type is a form of non-equity ownership—owners of a Right-To-Use vacation ownership interest are, in essence, leasing their timeshare. RTU is a common form of ownership in countries where real estate acquisition is restricted in the case of foreign nationals, such as Mexico or the United Kingdom. These contracts also differ from the traditional deeded structure because ownerships are only guaranteed for a specific number of years. At the end of this term, the interest reverts back to the developer.

Deed in Trust

Deed in Trust means that the legal title to the vacation ownership interests at a given resort is retained by a third-party trust. Owners are issued equity ownership certificates, which are guaranteed by the trust for the duration of the contracted term. Similarly to Right-To-Use agreements, Deeds in Trust are most common in countries that prohibit the ownership of property by foreign nationals.


More or less synonymous with deeded ownership, condominium vacation ownership prioritizes certain elements of the traditional condominium system that are less prominent in most timeshares, such as the decision making privileges of the Homeowners Association. Equity ownership is transferred to the owner in question upon purchase.

Undivided Interest

Legally defined as the “title to real property held by two or more persons without specifying the interests of each party,” undivided interests are most common with points-based timeshare programs. Under this system, you own a percentage of a given resort, or group of resorts, that affords you a certain degree of reservation privileges.

Club Membership

Common among vacation and travel club developers, club membership conveys no legal title and serves as a type of travel voucher, where owners can choose how and where to use their ownership within the given company network. Contractual terms are often for a short period and there are few legal guarantees on the execution of the agreement.

For further questions on how to determine which form of timeshare you own, or to find out which type of ownership best fits you, contact our timeshare specialists—just a phone call away at 1-877-815-4227!

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