What Kinds of Timeshare Ownership are there?

There are various types of timeshare ownership. Firstly, there is deeded ownership or the ownership of Real Property, just like a family home here in the United States.

Other forms of ownership have developed over the years, sometimes in response to local conditions. For example, some countries with popular timeshare resorts have restrictions on foreign ownership. Developers first offered to owners, in these circumstances, a lease over a particular unit or villa in a resort. The lease gives a right to use the property for an agreed period each year, either in perpetuity or for a specific length of time, say, 30 years. The common property was then often transferred to the owners in the form of stock in a company. These shares are Personal Property, and less valued as a form of security.

A variation on this form of ownership is simply a lease without the issue of stock in the corporation that owns the common property. You are still, in both cases, as with deeded ownership, levied an annual fee for the upkeep of the common property

As the timeshare industry matured, Fortune 500 companies like Disney, Sheraton and Marriott entered the industry. They began to use sophisticated forms ownership that gave more flexibility. Owners purchased points, or credits, that gave usage rights in multiple resort destinations owned by the companies. At any time of the year. These credits or points were fully transferable and were assets guaranteed by major corporations. As such, they became as valued as Real Property ownership in resorts, but with unprecedented flexibility. Licensing is another term that is used to describe this form of ownership and is essentially a club membership that gives usage rights at various resorts, provided you are a member in good standing.