I've noticd in some resale ads there is a residual value and mention of residual rights. Can someone give me a quick explanation of this?
-
The TUGBBS forums are completely free and open to the public and exist as the absolute best place for owners to get help and advice about their timeshares for more than 30 years!
Join Tens of Thousands of other Owners just like you here to get any and all Timeshare questions answered 24 hours a day!
Residual rights?
- Thread starter Kenrabs
- Start date
Dave M
TUG Lifetime Member
There are two major types of timeshare "weeks" ownership:
Deeded - meaning that you own a part of the timeshare resort.
Right to Use ("RTU") - meaning that you have the right to use the timeshare for a specified number of years under a long-term lease.
An RTU timeshare might have residual rights, meaning that there may be some value in which you will share if the property is sold at the end of the lease. Those residual rights, if any, are detailed in the legal documents for the resort.
If an RTU timeshare has a remaining lease of (e.g.) 25 years or more, you shouldn't care much about what those residual rights are. Buy to enjoy 25+ years of vacation and, if you're really lucky, you'll get a few bucks (in terms of today's value) when the lease is up.
However, if the timeshare has a remaining life of only a few years, those residual rights would be very important in determining your offering price for a purchase.
Deeded - meaning that you own a part of the timeshare resort.
Right to Use ("RTU") - meaning that you have the right to use the timeshare for a specified number of years under a long-term lease.
An RTU timeshare might have residual rights, meaning that there may be some value in which you will share if the property is sold at the end of the lease. Those residual rights, if any, are detailed in the legal documents for the resort.
If an RTU timeshare has a remaining lease of (e.g.) 25 years or more, you shouldn't care much about what those residual rights are. Buy to enjoy 25+ years of vacation and, if you're really lucky, you'll get a few bucks (in terms of today's value) when the lease is up.
However, if the timeshare has a remaining life of only a few years, those residual rights would be very important in determining your offering price for a purchase.