Right to Use vs. Deeded

[janej]

I just noticed that the Marriott Mountain Valley is a right to use property with no expiration date. How is that different from deeded? Is the property actually owned by Marriott? Is that why the maintenance fee is high?

 

[dioxide45]

For a long time Mountain Valley Lodge was not conveyed to the trust, much like Custom House which still has no weeks conveyed. Though there are weeks now and the legal description on the conveyance notice does indicate that it is real property. Perhaps it works a little different than Custom House in it's RTU?

 

[janej]

Is that why both resorts have higher MF? Do the owners pay rent to Marriott for the right to use every year? I always thought RTU means limited year and deed means forever, guess that is not true.

 

[SMHarman]

I just noticed that the Marriott Mountain Valley is a right to use property with no expiration date. How is that different from deeded? Is the property actually owned by Marriott? Is that why the maintenance fee is high?

Is that why both resorts have higher MF? Do the owners pay rent to Marriott for the right to use every year? I always thought RTU means limited year and deed means forever, guess that is not true.

RTU is still very similar in set up to a deed but used where you cannot deed a property in perpetuity. Mexico uses them where a non Mexican cannot own on the beachfront. Custom House is owned by the City of Boston and then leased to Marriott who then created the timeshare. I imagine the TS RTU runs for a time a little shorter than the length of the lease from the city of Boston.

Marriott Mountain Valley - I'm going to guess this is built on leased federal land or something like that making RTU the best method of conveying a right to individuals.

Putting these in the trust is logistically difficult as a share in the trust is granted in perpetuity and the trust needs a week in for each share given out. If you put a MCH or MMV week into the trust and at some point in the future that week expires, you still have a share to pull a week out so there are more people to take weeks out than weeks deposited (i hope that makes sense, it did when i wrote it).

 

[janej]

RTU is still very similar in set up to a deed but used where you cannot deed a property in perpetuity. Mexico uses them where a non Mexican cannot own on the beachfront. Custom House is owned by the City of Boston and then leased to Marriott who then created the timeshare. I imagine the TS RTU runs for a time a little shorter than the length of the lease from the city of Boston.

Marriott Mountain Valley - I'm going to guess this is built on leased federal land or something like that making RTU the best method of conveying a right to individuals.

Putting these in the trust is logistically difficult as a share in the trust is granted in perpetuity and the trust needs a week in for each share given out. If you put a MCH or MMV week into the trust and at some point in the future that week expires, you still have a share to pull a week out so there are more people to take weeks out than weeks deposited (i hope that makes sense, it did when i wrote it).

Thanks for the information. It makes lots of sense now. The only question is that how can the RTU be non-expiry if the land is leased. They must have an unlimited term for the land lease?

 

[SMHarman]

Thanks for the information. It makes lots of sense now. The only question is that how can the RTU be non-expiry if the land is leased. They must have an unlimited term for the land lease?

That would be my guess. The US government have given a perpetual or 999 year lease to the government land the building is on and similar rights have been passed on.

 

[Saintsfanfl]

Thanks for the information. It makes lots of sense now. The only question is that how can the RTU be non-expiry if the land is leased. They must have an unlimited term for the land lease?

That would be my guess. The US government have given a perpetual or 999 year lease to the government land the building is on and similar rights have been passed on.

The reason this is done rather than transferring the land is to ensure that any specified terms are followed. I worked at a summer camp when I was younger that was on 25 year leased land that was perpetually renewed for $1 every 25 years. The land was basically donated but could not be resold, subleased, or used in any other manner than a youth summer camp with a free week to the Boy Scouts every year. An unlimited term lease is the only way to continually govern the terms of the donation.

 

[Bill4728]

Many of the properties in Hawaii are also RTU

 

[BocaBoy]

Many of the properties in Hawaii are also RTU

Not the MVCI timeshares. They are deeded.

 

[SueDonJ]

I always get confused in these discussions. Aren't ALL Marriott timeshare purchases deeded, but some are perpetual and some are RTU with an end date?

 

[dioxide45]

I always get confused in these discussions. Aren't ALL Marriott timeshare purchases deeded, but some are perpetual and some are RTU with an end date?

An RTU is a contract between Marriott and the owner providing rights to use the property for a set period of time and not a deed where the owner has direct ownership in the real estate.

 

[Saintsfanfl]

I always get confused in these discussions. Aren't ALL Marriott timeshare purchases deeded, but some are perpetual and some are RTU with an end date?

Some timeshares have an end date even though the units are deeded. Ocean Pointe for example has an end date unless it is voted to continue. The right to the deed does not technically expire with the timeshare but it would be difficult or impossible to utilize without a managed timeshare. If it was not voted to continue it would likely be sold.