What is a Lease?
In localities where the deeded ownership of vacation properties is not permitted by law, it is standard practice for a resort developer or management company to lease timeshare properties. Lease arrangements are also known as Right-to-Use agreements. The resort developer or Management Company holds ownership of the physical property. However, during the right-to-use period, the owner may rent, transfer, or bequeath the remaining years of their right to use property. These arrangements are usually good for a period from twenty to ninety-nine years.
You're likely to find Leased or Right To Use properties at most resorts in Mexico and Hawaii. Usage of these properties expires after the year-agreement is up, but they do tend to be more flexible than deeded timeshares because they assign a particular number of usage weeks, rather than annual or biennial usage. Owners of Leased property could vacation three years in one year, and then not again for three years, should they so choose.