Quote:
Originally Posted by qlaval
Hi,
The vast majority of the TS and hotels in Aruba are built on government land.
The land is lease by the government to the resort (usually) for a renewable period of 60 years.
To be considered deeded a property need to be built on a purchased land.
(The land cannot be leased for a property to be deed)
Deed means that it is "totally" yours. And total ownership implies that you own the land as well.
Marriott properties are not deeded they are certificate of ownership.
Why? Because they are build on a land lease.
Still the resort is totally owned by the owners.
(The ownership is subject to the 60 years land lease renewal)
As long as these TS are under a valid land lease they are just like a deeded property.
What happen if the land lease is not renewed?
If the government don't renew the land lease then the resort will need to be appraise to determine the value and then buy back by the government, the money will then be distributed between the owners.
Is there any chance that the government will do that?
It is very very unlikely, first resorts like the Stellaris, the Ocean Club or the Surf Club worth more than $250,000,000usd each!
Government mission is not owning and managing resorts.
Still if a resort becomes a dump because it’s not manage properly and if his value is close to nothing there is a good chance that the government won’t renew the land lease and buy back the resort. It will then probably lease it again for another resort project.
Land lease is also good for Aruba; if the land value double or triple in 60 years imagine what will happen to the future land lease contract....
As for the Divi they are RTU (Right To Use).
Meaning you only own the right to use a TS unit for a specified number of years.
Did you purchase directly from the developer?
If so there is a good chance that you could purchase the very same TS for about 40-50% less if you go with resale!
If your TS purchase if very recent there is usually a mandatory rescindable period.
Look for it in your contract.
I strongly suggest you to go to www.tugbbs.com/forums and read the in and out of TS ownership.
On the other if it is too late just like Rob has suggested don't beat yourself up cause it won’t change the situation more it will leave all your future vacations with a sour taste. That would be sad as your main reason for purchasing was to have fun and enjoy lots of vacations.
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I stand corrected,I thought it was deeded but now I do remember my salesperson saying something about not owning the property.