RCI Points FAQ Pt. 7
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:
Is a deeded RCI Points ownership more secure than a non-deeded ownership.
ANSWER:
Not necessarily.
While it is true that if a resort goes bankrupt, a person who holds a deed will have a piece of paper called a deed. That piece of paper, however, might entitle the owner to be responsible for a whole lot of debt that wasn't paid by the resort.
The owners might have been better off if they were in a non-deeded position, and simply wait for another company to come along to buy the resort for pennies on the dollar, restore it, and business goes on as usual. This is what generally happens when a resort gets in trouble, and the owners are fine and could in fact be better off if they didn't have a deed.
Savvy RCI Points buyers just look to buy for the lowest cost and lowest annual carrying charges and that almost always occurs in non-deeded resorts for two reasons:
1. If the resort is responsible for paying the bills, it is more careful with expenses.
2. There are no real estate taxes for the owners to pay.
Larry Hayden
Free Guide for Timeshare Buyers
Free Guide for Timeshare Sellers
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posted : 3:59 AM
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