Editing Timeshare (section)

===Deeded versus right-to-use contracts===
A major difference in types of vacation ownership is between [[deed]]ed and right-to-use contracts.

With '''deeded contracts''' the use of the resort is usually divided into week-long increments and are sold as '''real property''' via fractional ownership. As with any other piece of real estate, the owner may do whatever is desired: use the week, rent it, give it away, leave it to heirs, or sell the week to another prospective buyer. The owner is also liable for an equal portion of the real estate taxes, which usually are collected with condominium maintenance fees. The owner can potentially deduct some property-related expenses, such as real estate taxes from [[taxable income]].<ref>{{cite web |url=http://www.smartmoney.com/personal-finance/taxes/taxes-on-vacation-homes-9562/ |title=Taxes on Vacation Homes |publisher=Smartmoney.com |access-date=July 27, 2010 |url-status=live |archive-url=https://web.archive.org/web/20100710022247/http://www.smartmoney.com/personal-finance/taxes/taxes-on-vacation-homes-9562/ |archive-date=July 10, 2010 }}</ref>

'''Deeded ownership''' can be as complex as outright property ownership in that the structure of deeds vary according to local property laws. '''Leasehold deeds''' are common and offer ownership for a fixed period of time after which the ownership reverts to the [[freehold (law)|freeholder]]. Occasionally, leasehold deeds are offered in perpetuity, however many deeds do not convey ownership of the land, but merely the apartment or [[unit (housing)]] of the accommodation.

With '''right-to-use contracts''', a purchaser has the right to use the property in accordance with the contract, but at some point the contract ends and all rights revert to the property owner. Thus, a right-to-use contract grants the right to use the resort for a specific number of years. In many countries there are severe limits on foreign property ownership; thus, this is a common method for developing resorts in countries such as [[Mexico]]. Care should be taken with this form of ownership as the right to use often takes the form of a ''club membership'' or the right to use the reservation system, where the reservation system is owned by a company not in the control of the owners. ''The right to use may be lost with the demise of the controlling company'', because a right to use purchaser's contract is ''usually'' only good with the current owner, and if that owner sells the property, the lease holder could be out of luck depending on the structure of the contract, and/or ''current'' laws in foreign venues.