Although deeded timeshare may not be as prevalent or popular as it once was, there are still many timeshare owners who own their timeshare by deed rather than vacation club membership or right-to-use timeshare ownership. When you purchase a deeded timeshare interval it is important for you to know the various “vesting” options you have when you purchase that interval because timeshare is real estate.
With deeded timeshare ownership, timeshare owners actually own a percentage of their timeshare unit and may also have shared ownership of the timeshare resort common areas. Your interest is legally considered real property. You purchase the right to use a specific unit at a specific time every year, and you may rent, sell, exchange, or bequeath your specific unit. You and all the other timeshare owners collectively own the resort.
The word “vesting” is how an owner holds title to a deeded timeshare property. During a timeshare closing, the escrow agent or closing agent supplies a closing package that asks the buyer how they choose to hold title. Timeshare vesting options affect future tax, estate and legal decisions.
Not all vesting options are available in every state, so be sure to consult with the title agent and a real estate attorney in the state where the timeshare property is located to confirm what vesting options are available in that state.
Below is a list of vesting definitions:
Community Property: Ownership of a property bought during a marriage where each spouse owns one-half of the property.
Joint Tenancy: Ownership by two or more parties. With joint tenancy if one owner dies, the surviving owner or owners automatically take title with no need of the probate process.
Sole Ownership or Tenant in Severalty: Ownership by one individual or legal entity.
Tenants in Common: Ownership by two or more parties with each owner having an undivided interest.
Tenants by the Entirety: Ownership by husband and wife. While similar to joint tenancy, for legal purposes the husband and wife are considered to be one entity.
The way you hold title to your deeded timeshare property is very important and will affect your overall future financial picture. If you are unsure of what the best option is for you, ask the title agent or contact a real estate attorney for assistance.
Advantage Vacation is a member of the American Resort Development Association (ARDA) and offers the best buys on the timeshare re sales market today. We never charge an upfront fee for clients who want to sell a timeshare and only receive a commission, paid from escrow, when the transaction is closed.
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