# Right to use



## nuwermj (Mar 29, 2016)

The traditional meaning of a RTU (right to use) timeshare agreement, as I understand, is that "a developer owns the resort. ... You purchase the right to use an interval at the resort for a specific number of years — typically between 10 and 50 years. The interest you own is legally considered personal property." The ARDA similarly defines RTU as: "A timeshare owner's right to occupy a unit at a resort for a specified number of years and having no real estate interest conveyed." It seems generally accepted that "RTU" means there is a set date for your contract to end.

I am a Diamond points owner. The trust agreement for the US Collection states that I hold a "beneficial interest" ("All equitable and beneficial interest in the Resort Interests will be vested solely and exclusively in the Association and its Members"). My timeshare contract with the US Collection states that "The Membership is a form of a 'right-to-use' timeshare interest, and Purchaser will not receive a deed to any interest in real property." Moreover this contract is perpetual, there is no set date for the contract to end. Finally, the loans Diamond makes are not mortgages because, DRI claims, "The sale of VOI points is a 'right to use' or contract right. There is no real estate component of the purchase."  

So I'm confused. My contract clearly states I have a "right to use" interest in the trust. But this is also clearly not the traditional meaning of RTU noted in the first paragraph above. Does anyone understand the type of ownership for the DRI US Collection? Can you help me clear-up my confusion? (I would assume Hawaii Collection uses the same language, but I'm not a member so I'm not 100% sure.)


----------



## DanZale2000 (Mar 30, 2016)

I don't know much about the legal issues, but here's a lawyer who claim most trust-based timeshare plans are right to use.

Points-Based Timeshare Plans
Sheena Mitchell

http://www.sheenamitchell.com/assets/Points-Based-Timeshare-Plans.pdf


"Owners of a points-based timeshare membership do not have direct, deeded ownership in real property; rather their ownership interest is indirect, beneficial ownership via a trustee." 

"Generally, points are issued on a perpetual basis."

"Points-based timeshare programs ... are right to use timeshare programs."


----------

