Are you confused about the difference between the terms timeshare ownership, fractional, deeded, right to use, vacation clubs and vacation ownership? Well, you have come to the right blog.
It is perhaps easiest to start with the term “vacation ownership” as all of the other terms mentioned fall within this category. Vacation ownership covers any kind of ownership, whether that be full ownership of a second home, a vacation club membership or buying a fraction or share of a property that you will use for vacations.
Isn’t timeshare fractional ownership?
In the true sense of the word, timeshare ownership is indeed fractional, you are purchasing an amount of time that you will get to spend in a resort every year. When timeshare first began, timeshare was more fractionally based in that you would buy a fixed week in a particular unit. Nowadays when you purchase a timeshare you are buying a membership to a particular resort or chain of resorts that gives you the right to use a unit during certain periods of time. The basis of the modern timeshare ownership model is now flexibility rather than a particular second home.
The term “fractional ownership” is more like to be reserved for schemes whereby you become part owner in a specific piece of real estate. You purchase an amount of time in a deeded property that is yours forever. It follows the same premise as timeshare except that you become the owner of your share in your property rather than an owner of a flexible membership. Both have their advantages and it depends on the length of time you wish to have in a particular condo or resort and how flexible you wish to be. Fractional ownership is generally more expensive on the offset but works out cheaper over time.
What is the difference between right to use and deeded?
Right-to-use is the standard basis of timeshare ownership, meaning that you buy a membership in a residence club or resort where you have the right to use a similar property during the dates that you reserve. In this instance it is easy for your to choose your dates depending on your needs and membership status and can make exchanges with other resorts in different locations easily. Deeded means that you become the owner of a piece of real estate with all the taxes and responsibilities that that incurs. Like purchasing any kind of real estate, you receive the title for your property or fraction of the property. There is no time limit to your ownership.
What’s a Vacation Club
A vacation club is an entity where you buy membership that is manifested in terms of points. You can then use these points for vacation accommodation anywhere the vacation club has properties. Most timeshare companies nowadays function like a vacation club as you purchase points which you can then use flexibly both in time and location depending on how many properties they have in their portfolio. In any case, most reputable timeshare companies will be affiliated with large vacation clubs that offer accommodation around the world.