Difference Between Selling Deeded vs Non-Deeded Timeshare

When it comes to timeshare ownership, not all contracts are created equal. For those who own timeshare property and are contemplating selling, it is crucial to understand the difference between selling deeded vs non-deeded timeshares.

Some timeshare ownership is deeded to a specific unit at a specific resort. Others are deeded just to a resort, while still others may be points that are deeded to a particular resort. And then there are non-deeded and right to use products.

We aim to shed light on these two primary types of timeshare ownerships, their key differences, and implications for sellers. First, let’s look at the specifics of the two ownership models and how this plays into how you sell a timeshare.

Understanding the Difference Between Selling Deeded vs Non-Deeded Timeshare

What is a Deeded Timeshare?

A deeded timeshare usually involves the purchase of property classified as real estate. In other words, you own a piece of the real estate, albeit for a specific period each year. The 'deed' signifies a legal document that grants you ownership rights to the property, similar to shared ownership of a house or a condo.

The deed is recorded in the public records of the designated local government authority and could be transferred, willed, or sold, like other real estate assets. With a deeded timeshare, you own a 'fraction' of the property and have the right to use it for a set period annually.

Pros of Deeded Timeshare:

• Permanency: The ownership is legally yours until you decide to sell or transfer it.
• Asset Value: Over time, your portion of the property could theoretically appreciate in value.
• Transferability: You can transfer or bequeath ownership of your timeshare.

Cons of Deeded Timeshare:

• Costs: Beyond the purchase price, owners are responsible for yearly maintenance fees and any other assessments which may be approved by the resort management or homeowners association.
• Limited Flexibility: You have ownership for a fixed period of time, usually the same week(s) every year or, in the case of a floating week, the same season each year unless you use an exchange company.

What is a Non-Deeded Timeshare?

Non-deeded timeshare, often referred to as a pure points or right-to-use timeshare, offers a different arrangement. In this model, you purchase the right to use a property for a specific number of years, decades, or even for a lifetime. However, you do not own any real estate interest in the property. At the end of the term, all rights revert to the property owner.

In the case of points, the points are not deeded but are held in Trust and assigned by the Club to the owner based on the resorts and inventory under management or affiliated with the Club. WorldMark is an example of such a program.

Pros of Non-Deeded Timeshare:

• Value: In some instances, ownership can be cheaper than deeded timeshares because you’re not buying a piece of the property.
• Flexibility: Some non-deeded timeshares offer more flexibility because of choosing from multiple unit types or from multiple resort locations.
• No Long-Term Commitment: Once your lease term expires, you no longer have ownership obligations, assuming you have met all contract conditions.

Cons of Non-Deeded Timeshare:

• Expiration: Your right to use the property will expire after the contracted period, often requiring an upgrade to extend the life of the agreement.
• Changes to Ownership: The owner or member can be at the mercy of the resort management, who can make changes to the resort or program at will and without consultation with the membership.

Key Differences Between Deeded vs Non-Deeded Timeshare

Legal Ownership vs. Right-to-Use

The main difference involves what you actually own. In a deeded timeshare, you own real property. In a non-deeded timeshare, you only own a membership or license that grants you the right to use the property.

Longevity and Inheritance

A deeded timeshare is mainly a perpetual contract that can be inherited by future generations. On the other hand, a non-deeded timeshare generally expires after a set period.

Financial Obligations

Both types of ownership involve ongoing costs, such as maintenance fees. However, with non-deeded timeshares, you may also have to pay annual dues.

Flexibility

Most non-deeded timeshare ownership offers more flexibility in terms of when and where you can use the ownership, depending on the specific contract. Deeded timeshares are generally for a specific week or set season of weeks.

Geographical Considerations

With deeded timeshares, the sale may need to be reviewed by a timeshare lawyer before it can proceed, depending on the state in which the resort is located. South Carolina is one state that requires a legal review, which can add costs to, and potentially slow down, the process. Most non-deeded timeshares won’t have such requirements, especially in places like Mexico which only allows non-deeded timeshares to foreign buyers.

Implications for Sellers

Selling a deeded timeshare generally involves real estate closing costs and is usually a more complicated process involving a deed, similar to the way residential real estate is transacted. Selling a non-deeded timeshare is generally easier to process due to the legal Trust structure.

Selling The Timeshare – The Details

Deeded Timeshares:

Selling involves formally selling your share of the property, which is more of a formal legal process that requires transfer of deeds and closing costs.

Sellers need to be as specific as they can regarding the promotion of their ownership. This can involve confirming the details of the original purchase agreement or confirming the details with the resort.

Know exactly what the bedroom and bathroom configuration is, if the ownership in annual or every other year, and, if applicable, the specific week number, season of ownership and any points that may be attached to the deed. 

Non-Deeded Timeshares:

Selling generally involves selling the remaining years on the contract. This can impact the asking price, so be realistic about what you can get for those remaining years. You’ll need specifics like the season of ownership, whether it is an annual or biennial ownership and, if applicable, number of points to be sold.

With both ownership types, determining an asking price is vital to the success of selling your timeshare. To get started, we have developed a free market analysis calculator that provides you with the average asking price from sellers advertising timeshare on our platform. Just upload the name of your resort or club product and the essential details requested and you’ll have a starting price point.

How to Sell Deeded or Non-Deeded Timeshare

Both deeded and non-deeded timeshares have unique pros and cons. Sellers must be keenly aware of the nature of their timeshare ownership, as it has a direct impact on how the timeshare can be marketed, the selling price, and even the speed of the sale.

By using the automated, self-service platform of SellaTimeshare.com, deeded or non-deeded timeshare owners have a place where they can promote their ownership with no upfront fees to the millions of vacationers looking online for options.

Regardless of whether you own deeded vs non-deeded timeshare, the promotional process is the same. The primary difference to get started is in choosing the place where you want to timeshare to be advertised:

• Deeded Timeshare Owners – choose the specific resort at which your ownership is deeded. This goes for weeks as well as points owners who have their points deeded to a resort, such as with selling Disney timeshare ownership.
• Non-Deeded Timeshare Owners – you will need to choose the specific program that you are a member of, such as Marriott Vacation Club Destinations or WorldMark by Wyndham.

When starting the process, you’ll see the requested fields in our system where you will need to input details such as the number of bedrooms and bathrooms or number of points as well as your contact details so you can field offers coming in from buyers. Add your asking price and you’re all set.

Ready to begin? Get started here.