# what happens to rtu when it expires



## coffeeman (Dec 29, 2008)

looking at a mexico timeshare that ex. in 2027 what happens when it expires do u keep it and it just gets renewd, do u have to pay again at a reduced  rate or do u just lose it


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## AwayWeGo (Dec 29, 2008)

*U Looz  (Not That There's Anything Wrong With That.)*




coffeeman said:


> looking at a mexico timeshare that ex. in 2027 what happens when it expires do u keep it and it just gets renewd, do u have to pay again at a reduced  rate or do u just lose it


When it's over, it's over. 

That's not necessarily bad.  That is, when the RTU ends, you're off the hook.  

With deeded timeshares, by contrast, you're on the hook for paying those ongoing annual fees forever & ever, world without end, amen. 

Nothing like a nice RTU timeshare for an easy, no-hassle exit stategy. 

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​


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## timeos2 (Dec 29, 2008)

*There are no perfect plans*

Alan has it correct and if that was the whole story RTU might even be a great way to utilize timeshares. But, as always seem to occur in the timeshare world, things aren't done as you'd expect. Most (not all) RTU resorts/systems aren't run by the "owners" (actually long term lease holders with the obligation to pay the fees) but by the original developer.  Guess what? They want to make money. So rather than hold down costs and run thing as the owners would prefer they are the lord and master of the operations. Fees are what they want them to be and the lease holders are obligated to pay. Plus they can control things like week/unit assignments, trades, etc. The "owners" have no say but have to pay the bills. 

And when it all ends I have to think the temptation will be to have the resorts in perfect shape. Why not? The lease holders pay and, of course, will argue that they expect a nice place through that last year. But if it really is well maintained and upgraded then when that 30th year (or however long the RTU term is) they should have a near perfect resort to resell and at ZERO cost to them!  Does anyone think the fees will be reduced as the end nears? They should be but I'll take any bet they won't.  

And what about resale (if it's even allowed)?  Is a week good for 12 more years worth what one worth 30 or 40 years was? Of course not. So a depressed market is driven even lower by the limited use inherent to a RTU. 

Overall its far from perfect but then again neither is deeded ownership. With that there are questions about what will happen when an old resort is truly past it's useful life. How will it be shutdown - who will still want to buy in? What if fees go nuts or too many owners defualt? There is no perfect timeshare (or house or condo for that matter). RTU, deeded, lease to own - you pick what you think is best and hopefully get your value out  

RTU is just another way to have rights to a week "in paradise" of your choosing.


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## Kenrabs (Dec 29, 2008)

You'll find that with RTU ownerships the developer will try to upgrade you any chance they can. If you have a small unit they will try and get you to buy bigger. If they have gold, platinum, etc memberships they will try and upgrade you. When you upgrade they usually extend the lease to 30 years or what ever their benchmark is.


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## Timeshare Von (Jan 5, 2009)

Like everything else in timeshares, there is no single answer or model.  I owned a 20 yr RTU at Split Rock in the Poconos.  I anticipated getting the hard sell to buy up as the expiration date neared.  I never heard word one from them, to include no "thank you for your 20 years with us."

A couple of years before my last year of ownership, I had started shopping around to buy something on the resale market to replace the anticipated loss.  That was when we bought the 3BR l/o at Kingsgate.

As an aside, about four years before the end of my 20 years on the RTU contract, they had a sizeable three year assessment to spruce up the place before turning the units back out for sale again.  Needless to say, I wasn't very happy with how that turned out.


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