Timeshares come in several ownership types, as well as several sub- or usage types. One type of timeshare ownership is a right to use, or RTU, timeshare. RTU timeshares can be a great option for some buyers, especially those who don’t want to own their timeshare in perpetuity. But just what is a right to use timeshare agreement? Before you sign on the dotted line, it’s important you know exactly what you’re getting into. That’s where we come in. Fidelity Real Estate is here with everything you need to know, including RTU meaning, workings, benefits, and more. Once you’re an RTU expert, follow the link at the end of the blog to find your RTU timeshare today!
What Are Right To Use Timeshares?
RTU, meaning “right to use,” timeshares are non-deeded timeshare contracts and give you the right to use a unit for a set amount of time. This means that, unlike a deeded ownership contract, you do not actually “own” the timeshare. Rather, the terms of the contract legally bind you to the vacation property. The amount of years each timeshare contract lasts depends on the resort and brand. When you purchase an RTU timeshare, you know exactly when the agreement expires, meaning you are immediately aware of when you will no longer be under contract for that property.
Having an expiration date may give the owner a sense of relief. They can relax knowing that they aren’t bound to a contract for life. They know when they purchase that they will not be responsible for maintenance fees or other costs forever. Unfortunately, some people on deeded timeshare contracts get into some financial trouble. This could simply be because they cannot afford to pay their fees for that long of a timeframe. Many owners appreciate that RTU timeshares give them the flexibility of a guaranteed endpoint.
How Do RTU Timeshare Contracts Work?
Unlike a deeded timeshare contract, which is like traditional real estate ownership, you “own” your RTU timeshare for a specific period of time. Owners are responsible for a deeded timeshare for life or until they sell it. The expiration date for an RTU timeshare is in the original contract. After that date, you are no longer legally responsible for that timeshare. The number of years of use for RTU timeshares is generally between 25 and 75 years. However, that number depends on resort location and brand.
Selling a Right to Use Timeshare
As with traditional timeshare ownership, you can sell an RTU vacation property or pass it along to your family. However, the contract term will still be the same as the originally designated length. For example, if you were to sign a 30-year RTU contract in 2021 but sold it in 2031, the new timeshare owner will only have 20 years of use. The same contract terms, including length, do not renew when it is resold; they will always remain the same.
RTU vs. Deeded Timeshare Resale
RTU timeshares are non-deeded, and the process can be less complicated than deeded timeshares. No matter which type you own, there are options—such as using a timeshare resale company, exploring donation programs, or legally transferring ownership to another party. Knowing the structure and expiration of your RTU contract gives you the flexibility to plan ahead and explore these exit strategies if your needs change.
Donating or Gifting an RTU Timeshare
If you’re no longer interested in keeping your right to use timeshare, you might be wondering if you can donate or gift it to someone else. The good news is, both options are possible—with a few important details to keep in mind.
To donate your timeshare, start by checking with local charities or non-profit organizations to see if they accept timeshares as donations. Just keep in mind, most organizations will review the property and its associated fees or remaining term before accepting it, so not all timeshares are eligible.
If you’d rather transfer your timeshare to a friend or family member, you can gift it by following your resort’s official transfer process. Most brands—like Marriott, Wyndham, or Hilton—require you to complete specific paperwork and may charge a transfer fee. You’ll also need to notify the resort in writing so they can update their records. Remember, the new owner will take over the same contract terms, including any fees and, of course, the remaining years on the RTU agreement.
No matter which route you choose, it’s always smart to speak with your resort’s owner services or consult a professional to ensure a smooth transfer. Doing this will also help you to avoid any surprises down the road.
How Timeshare Specialists Can Make a Difference
Navigating the ins and outs of timeshare ownership can feel like learning a new language. Especially when you’re weighing the decision to buy, manage, or part ways with a vacation property. That’s where timeshare specialists and experienced professionals come in handy.
These industry insiders don’t just know the fine print—they live and breathe it. Here’s how they can lend a helping hand:
- Guidance in Buying: Specialists can help you compare options across brands like Marriott Vacation Club and Disney Vacation Club, so you can find the right fit based on your travel habits and budget. They’ll also break down the mysteries of points systems, contract lengths, and exchange privileges so you know what you’re getting (and, equally important, what you’re not).
- Managing Ownership: From deciphering annual maintenance fees to optimizing your points or trading power, timeshare professionals can offer tips and resources to make the most of your ownership. If your timeshare is points-based (like many Hilton Grand Vacations or Wyndham properties), they can even help you strategize how to use your points to maximize vacations.
- Assistance with Exiting: Thinking of selling, donating, or transferring your timeshare? Specialists are well-versed in the secondary market and can help you navigate resale platforms, like Fidelity Real Estate, and connect you with reputable brokers. Even if your contract has a few years left, they’ll know the best strategies to get your property in front of buyers and can advise you on what to expect in terms of timeline and value.
Best of all, many timeshare professionals offer free consultations—so you can get tailored advice before making any big decisions about your vacation ownership journey. Whether you’re just getting started or looking for a graceful exit, an experienced guide can help you avoid common pitfalls and make confident choices.
RTU Timeshare Locations
Right to use timeshare contracts are often found in international destinations. This is because owners can’t legally “own” vacation property without a deed there if they are U.S. citizens. In fact, all timeshares in Mexico for example are RTU unless you are a Mexican citizen.
RTU Subtypes
Like all types of timeshare ownership, RTU contracts come in several subtypes, or usage types. Right to use timeshares are usually points-based, meaning owners can access different locations within their brand’s portfolio. However, they also come in the fixed-week variety, where owners enjoy usage rights during the same week every year. Moreover, an RTU timeshare may either be annual, meaning the points or week are available every year, or biennial, meaning every other year.
Learn about other types of timeshares and discover which is right for your family at our blog!
Benefits of RTU Timeshares
People enjoy RTU timeshare contracts for a few reasons. Firstly, they know exactly when the end date of their RTU contract is when they sign, meaning there is a guaranteed way out of their timeshare. This is a more difficult situation to navigate with deeded contracts. This also means that owners know when they will stop paying maintenance fees, unlike deeded timeshares with owners who are responsible for fees even when they are no longer able to use their timeshare.
Deeded timeshare contracts may be in one family for generations. While one could see this as a lovely family heirloom, timeshares owned in perpetuity often cause strife for those who inherit them. Since RTU’s have a concrete end date, you don’t have to worry about your timeshare ownership being a burden on your loved ones.
Further Resources for Timeshare Owners
If you’re looking to dig deeper into the ins and outs of timeshare ownership—or you’re curious about your options for exiting a contract—there are plenty of reputable resources at your fingertips.
Start by browsing blogs and guides from established timeshare resale marketplaces like Fidelity Real Estate. These sites offer comprehensive information on topics ranging from the basics of ownership to step-by-step exit strategies. The American Resort Development Association (ARDA) is also a valuable source for current industry standards and consumer tips.
No matter where you are in your timeshare journey, arming yourself with trusted info will help you make the best decision for yourself and your family.
Are Disney Vacation Club Timeshares Right To Use?
Disney Vacation Club timeshare contracts have an expiration date, but does that mean that they are RTU? Contrary to how it sounds, DVC timeshare contracts aren’t right to use! DVC contracts are leasehold, which is similar to RTU but not the same. The major difference between leasehold and right to use contracts is that, with a leasehold, you actually own the property for the length of the contract. This means that similarly to homeowner’s association fees, DVC owners pay annual dues that go towards the resort’s operating costs and real estate taxes.
DVC members own their timeshare until their home resort’s expiration date, which they agreed to when buying their contract. Sometimes, DVC will extend a resort’s expiration date and may offer current owners the option to extend their ownership. This is the only way that a DVC contract’s expiration date will change. If you buy a DVC timeshare on the resale market, you are agreeing to the original expiration date of the contract.
Want to learn more about how DVC points work?
Timeshares For Sale
If you’re ready to take the first steps towards vacation ownership, we’re here to help. Browse our marketplace of available timeshare resale listings now! You can browse for specific brands and locations or by price. When you find a listing that you love, make an offer! Fidelity is a licensed brokerage with a team of expert real estate agents. For assistance in buying a timeshare, contact us today at 800-410-8326 or [email protected]!
Sell Your Right to Use Timeshare With Fidelity Real Estate
Do you already own a right to use a timeshare or other type of vacation ownership? Want to list it on the resale market? Fidelity can help! As long-standing members of ARDA, with over 20 years of experience and an A+ rating by the BBB, Fidelity Real Estate is the trusted resale solution for owners looking to sell their timeshares. Our marketing experts can get your timeshare seen by interested buyers from around the world, while our licensed real estate brokers can assist you at every step of the closing process. Learn more about how to sell your timeshare, or fill out the form below to get started.
