RESIDUAL VALUES
Mexican timeshare ownership is limited by Mexican law that does not allow full "foreign" ownership in coastal areas. Therefore, all Mexican timeshare must be sold as a long term lease for a period of years specified in the contract. This is known as "Right To Use" (RTU). Typically, when the RTU contract expires, the member is either left with nothing or given the option to spend thousands of dollars extending the contract for another period.
Royal Resorts wanted to find a way to provide full value to it's members that takes this into consideration. They introduced the concept of a RESIDUAL VALUE, included in Royal Resort Contracts for Club Internacional, the Royal Mayan and the Royal Caribbean. Residual values are the original selling prices that each interval sold for when purchased new from the developer. This amount is guaranteed by the contract to be returned to the member at the expiration of the Right To Use period.
Residual values for the Royal Islander, Royal Sands and Royal Haciendas are computed slightly differently. Instead of a fixed dollar value, Royal Resorts decided to allocate the residual value to each member as an equal share of the final selling price of the resort property when sold at the end of the RTU period.
This method of returning you purchase price at the end of the contract is very unusual for timeshare in Mexico. I know of no other company that offers it. Royal Resorts provides to its members a way to "equalize" the advantage of owning a deeded week. Yet another example of the difference in owning at the Royal Resorts over other Mexican timeshares.
How do you determine what the residual value is? There is NO formula that will compute the residual value. The newer resorts have higher residuals due to their higher original selling prices. The only real way to find out what a residual value is would be to look at the contract. A higher residual value may make it reasonable for you to pay a bit more for the timeshare, as this money may be returned some day.