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Deeded or Not

Deeded or Not

We are not attorneys and are expressing our experienced
opinions within these answers.
If you are concerned, please contact an attorney for clarification.

According to Real Estate law, rights and responsibilities are tied to the property and are transferred with it’s ownership through the deed. Taxes, use fees such as utilities, assessments, easements, etc., and land use requirements are based on the property. Only approval from the deed owner/seller and new buyer are required for transfer.

According to Contract law, the contract rights and responsibilities are solely within the contract between the parties. Any changes in any way must be approved by ALL parties to the contract. A contract can not be changed without such agreements signed in writing. Mortgages are a special type of contract. They remain on the property while the seller remains the responsible party. If they want release the mortgage holder can make requirements for such release and transfer or addition of a new responsible party such as the new owner.

Occasionally there is confusion because there are additional contracts such as association memberships, Covenants, Conditions, and Restrictions (CC&Rs), maintenance contracts, etc. associated with a deed. By law, such contracts are governed by Real Estate law and attached to the property.

Timeshares come in two types. Deeded timeshares are considered real estate and governed by Real Estate Law. Right-to-Use timeshares do not have a deed and are personal property and governed by Contract Law.

The difference with Right-To-Use Membership Contracts is that they are not governed by Real Estate law. The resort is a party to the original contract and must give permission to change the terms of the contract. If what you have is a deed, the resort is NOT involved. DO NOT confuse your CC&Rs and contract you signed at purchase with a RTU Membership Contract. 

THEY ARE NOT THE SAME!!

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