I just received the contract I am supposed to sign for my EBAY timeshare purchase. The first line says: "the seller will provide a free & clear title via a warrenty deed OR a membership agreement." Whats the difference? I was told I would get a warrenty deed. I am new to this. I don't even know what a "membership agreement" is!
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Warrenty deed/membership agreement
- Thread starter tmolden
- Start date
johnmfaeth
TUG Member
Most ebay resellers have a standard boilerplate contract. The ad should state the type of ownership docs will be provided. In the Caribbean (non-US Virgin Islands) and Mexico, all timeshares are right to use leases which have a membership agreement. In the US, about 95% of all timeshares are deeded, so you get a deed, typically a warranty deed.
In actuallity, it doesn't matter much, as long as the lease is for a long duration (versus expiring in a few years).
In actuallity, it doesn't matter much, as long as the lease is for a long duration (versus expiring in a few years).
Last edited by a moderator:
Dave M
TUG Lifetime Member
Two possibilities:
1) It's a standard agreement that the seller uses, covering both possibilities. In that case, somewhere in the contract the exact nature of what you are buying should/must be specified. It could be a membership agreement, depending on where the timeshare is located. Otherwise, don't sign. Always keep in mind that when dealing with any purchase, promises not in writing should be presumed not to exist.
or....
2) You have bought into a vacation club, not a timeshare. I hope not because such vacation clubs generally have very little value.
Care to share the name of what you bought?
1) It's a standard agreement that the seller uses, covering both possibilities. In that case, somewhere in the contract the exact nature of what you are buying should/must be specified. It could be a membership agreement, depending on where the timeshare is located. Otherwise, don't sign. Always keep in mind that when dealing with any purchase, promises not in writing should be presumed not to exist.
or....
2) You have bought into a vacation club, not a timeshare. I hope not because such vacation clubs generally have very little value.
Care to share the name of what you bought?
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Deeded vs. Right to use
If you buy a deeded week, you'll get a new deed. However, if you buy into a "right to use" arrangement, you won't get a deed. Instead, you'll receive a "membership certificate" spelling out the nature and terms (and likely an expiration date) of your "right to use".
Are you clear in your own mind whether your eBay purchase was a deeded week or a "right to use"? It might just be that your contract document contains some "one size fits all, boiler plate" language covering both, but I'd suggest that you don't sign and return any contract documents until you are very clear in your own mind about the difference between "deeded" and "right to use" and equally clear in your own mind about whether the difference between the two is of any particular importance to you. Both will involve annual maintenance fees, but the "RTU" is membership (not ownership) and likely has a specified pre-determined expiration date.
Hope this helps you. Feel free to come back with more details of the actual purchase for more transaction / resort specific input.
If you buy a deeded week, you'll get a new deed. However, if you buy into a "right to use" arrangement, you won't get a deed. Instead, you'll receive a "membership certificate" spelling out the nature and terms (and likely an expiration date) of your "right to use".
Are you clear in your own mind whether your eBay purchase was a deeded week or a "right to use"? It might just be that your contract document contains some "one size fits all, boiler plate" language covering both, but I'd suggest that you don't sign and return any contract documents until you are very clear in your own mind about the difference between "deeded" and "right to use" and equally clear in your own mind about whether the difference between the two is of any particular importance to you. Both will involve annual maintenance fees, but the "RTU" is membership (not ownership) and likely has a specified pre-determined expiration date.
Hope this helps you. Feel free to come back with more details of the actual purchase for more transaction / resort specific input.
Last edited:
johnmfaeth
TUG Member
Hi,
Couple of items:
You will be receiving a deed on this purchase. It should be a warranty deed.
I know this reseller and closing company having bought over 20 timeshares from them over the last 6 years. They are honest and deliver.
With any timeshare purchase, closing companies can make mistakes. It is your reposibilty to carefully read the contract to make sure that the resort and the number of points are accurately shown. Question anything you do not understand with the seller first, not the closing company.
If you look at the points chart for the resort, you will see that you do not have enough points for a mid-summer night but can do a weekend in the "shoulder season".
But again, it is a good start to learning.
And from Wyndham, you would have probably paid around $5,000 for this one...
Couple of items:
You will be receiving a deed on this purchase. It should be a warranty deed.
I know this reseller and closing company having bought over 20 timeshares from them over the last 6 years. They are honest and deliver.
With any timeshare purchase, closing companies can make mistakes. It is your reposibilty to carefully read the contract to make sure that the resort and the number of points are accurately shown. Question anything you do not understand with the seller first, not the closing company.
If you look at the points chart for the resort, you will see that you do not have enough points for a mid-summer night but can do a weekend in the "shoulder season".
But again, it is a good start to learning.
And from Wyndham, you would have probably paid around $5,000 for this one...
I just bought Fairfield points, probably from the same seller. I had them amend the contract to make it clear that my purchase would be a warranty deed and not a membership contract. Just being safe....
Ann
Ann