RCI Points FAQ Pt. 6

Over the next few posts, I'll be answering your questions about RCI Points. At the end of this series, I'll also point you to pages in this site where you can get even more detailed information. You can find more general information in our RCI Points section if you're a beginner.

QUESTION:
Are all RCI Points deeded?

ANSWER:
No.

QUESTION:
Do I want to buy only in a deeded RCI Points resort?

ANSWER:
This answer might surprise you. Not necessarily, and probably not. The majority of the RCI Points resorts worldwide are not deeded. Deeded RCI Points ownership actually has some significant disadvantages compared to two other RCI Points alternatives which are excellent:

1. A membership in perpetuity (forever) or
2. A very long term lease, such as a 99 year lease, (not a 20 year lease).

The main disadvantage of a deed is that the deeded owners are personally responsible for the costs of the operation of the resort.

If unforeseen expenses arise, and they do from time to time, each individual owner receives a special assessment bill that must be paid or risk the loss of the ownership. In addition, all deeded ownerships involve real estate taxes which can be an extra $100 to $200 per year. The idea of RCI Points is get your dollars of vacation currency (points) as economically as possible, as long as your use is for a long time such as forever or a 99 year lease.

Both of these alternatives have the main advantage of a deed - being able to will it to your children, but without the disadvantages of a deed as stated here-in.

The resorts are continually pounding buyers with the "wonder" of owning a deed. They don't mention what the buyer might need to wonder about - when is the next the next special assessment bill or tax increase! A deed makes it easy for the developer to slough off on the owners, expenses that he should have paid and would have had to pay if it were non-deeded.

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Larry Hayden

Free Guide for Timeshare Buyers
Free Guide for Timeshare Sellers

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