Aruba Timeshare Deed/Lease concern

[arubaerin]

Hi,

We are just heading home (at the airport now) and spent some time looking at timeshares. The one main question I had was, is it a deeded property or is it a 40 yr lease type situation. Depending on who I spoke with I received different answers regarding this, sometimes within the ame company. For example, Playa Linda stated they were deeded, Marriott stated they were a
60 yr lease type situation, but the Marriott Kiosk at the airport stated they were deeded. Divi Phoenix stated they were a 40 yr property (with the option for another 40). While I was there they stated there are no deeded properties allowed on the beach and no other program is deeded. Sorry for the long post, but does anyone know what the real story is regarding deeds? Lifetime ownership?

[cindyo]

each is different. If you buy a pre-owned the owner can explain. If not, view a contract b4 signing.

[EdnaSmith]

Divi -properties are a 40 year ownership. Aruba Beach Club, CasaDelMar, Playa Linda, Costa Linda are lifetime deeded and not sure about the others. Check various timeshare websites and see what they say. We have lifetime deeded and already have our grown sons on all of our deeds.

[arubaerin]

Hi, thanks for responding so quickly. Unfortunately we had already purchased at the Divi Phoenix based upon they telling us there were no deeded properties allowed. We took their word for it and may have made a terrible mistake. I had asked the question twice, to the sales person and her manager. Both responded the same. I may need to contact an attorney.

[fattypatty]

It seems ur purchase was fairly recent...u may still be able to renege on the contract. When I bought mine at the marriott the
Disclosure for ny allowed 10 days from contract date to cancel without any penalties. Also the surf club units are deeded properties in perpetuity allowing
U to bequeath it to heirs.

[DANNYO]

Marriott,is a deeded property.

[rob o]

Originally Posted by arubaerin

We took their word for it and may have made a terrible mistake.

Don't beat yourself up over this. We've owned at Renaissance (now three units) for 10 years, and I couldn't fully explain what we own. The terms are so long, it matters little. The most important things are the condition of the units and their financial stability. As for condition....who knows how well anything will be maintained? Financial stability....even less predictable.

My advice? Just look forward to enjoying it.

[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.

[DANNYO]

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.

I stand corrected,I thought it was deeded but now I do remember my salesperson saying something about not owning the property.

[fattypatty]

really? when they sold it to me, it was presented as a deeded property.