Timeshare
Glossary
If
you are new to the idea of timesharing, or even
if you're not, there may be some terms you are
not familiar with. The following glossary defines
many of the 'hot words' used in the timesharing
industry.
Accrued
Weeks:
Weeks that have accumulated from the prior year
and are available for use in the current calendar
year.
Affiliated
Resort:
A timeshare resort, or developer, that also owns
resorts in other locations or has contracted with
other resorts to allow owners to use their week(s)
at the “affiliated” resorts. This
is most common with vacation clubs.
Amenities:
Features that add to the value of the property
such as swimming pools, tennis courts, golf courses,
boating, full kitchens, laundry facilities, etc.
The more amenities a resort offers the greater
the increase in value and desirability of the
property.
Bank
or Space bank:
The term used when an owner decides to not use
their allocated time for the current year. The
owner can choose to “bank” their time
with an exchange company to use at a future date.
Typically an owner has two years to use the time
once it has been banked.
Biennial:
The time allocated to use your timeshare is on
an every other year basis.
Bonus
Time:
Use of your resort in addition to your regular
allocated time on a space available basis.
Camping
Membership:
A membership to a resort or resort community catering
to campers, some of which are affiliated with
national organizations providing camping locations
for members in many states and other countries.
Check-In
Date:
The assigned date and day of week the interval
week begins; usually Friday, Saturday, or Sunday.
The check-in day begins the seven-day interval
week. For example, if the interval week begins
on Friday, the week ends on the following Friday.
The interval owner (or renter) need not check
in on the specific check-in day; however, late
check-in does not extend the interval week beyond
the scheduled checkout day.
Check-In
Time:
The assigned hour an interval week begins; usually
3:00 PM, 4:00 PM, or occasionally 5:00 PM prevailing
time. The interval owner need not check in at
the precise time; however, late check in does
not extend the interval week beyond the assigned
check out time. Check-out time is normally 10:00
AM or 11:00 AM prevailing time on the seventh
day following check-in. [Example: check-in on
Saturday at 4:00 PM and check-out on the following
Saturday at 10:00 AM].
Close
Escrow:
The time in which the purchase of a property has
been completed. The completion includes the title
being transferred, verified and all funds have
been disbursed.
Closing
Costs:
Those costs associated with the closing process;
usually including: deed preparation or transfer
of equity for right-to-use properties, recording
costs, escrow fee, and administrative fees.
Club
Membership:
Year-round usage of resort facilities with purchase,
on a space available basis.
CTLS©:
The computerized information system used for buyers,
sellers, renters and cooperating brokers for the
purpose of completing those types of resort property
transactions worldwide.
Deed:
Ownership interest providing title to your property.
Fee simple.
Deeded
Property:
True property ownership with deed recorded in
the county where the property exists. This type
of property has the same rights of ownership accorded
to it as other deeded real estate. The owner may
sell, rent, bequeath, or giveaway the property.
Developer:
A company that owns and constructs the resort
is known as the “developer”.
Developer's
Price:
Estimated developer's current or market price.
Full retail price.
Escrow:
A special secured account used to hold funds from
the buyer and the seller related to closing of
purchase and/or sale of a property
Exchange:
The process of trading an interval week at one
resort for an interval week at another resort
or trading a specific week at the home resort
for another week at the same resort. The exchange
system allows an interval owner to trade their
week with other interval owners thereby allowing
each owner to travel and vacation throughout the
world.
Exchange
Company:
A company or organization that accepts interval
weeks on deposit from it's interval members to
establish a pool of weeks from which other members
may select the resort and vacation times of their
choice. When a member deposits their week with
an exchange company, the company compares the
week the depositor is asking for with weeks deposited
by other members and provides a suitable match
based on availability and value. Factors affecting
the "trading value" are: the resorts'
rating, the time division; i.e., prime time versus
low time, the size of the unit desired, etc.
Exchange
fee:
The service fee that is charged during the exchange
process when using your deposited time.
Fee
Simple:
The preferred type of real estate ownership. This
type of interval ownership is the opposite of
Right-to-Use or lease ownership and continues
forever. The owner holds a deed in his/her name
and the ownership of the property can be bequeathed
to heirs.
Fixed
Unit:
A time period that is fixed for each calendar
year, either by date or by calendar weeks; most
in numerical sequence 1-52. With a week number,
your actual start date may vary slightly from
year to year. Unlike a floating unit, a interval
owner who owns a fixed unit at a resort will always
vacation in the same physical unit each year he/she
vacations at that resort. This type of ownership
is particularly important if you have purchased,
for example, an oceanfront property with the ocean
at your door step and are not willing to vacation
in an ocean-view unit. A fixed unit property assures
the owner that he/she will always have the exact
location and the exact unit they have purchased.
Fixed
Week:
Referring to the interval calendar, the purchase
of a fixed week property assures the owners that
they will always have the same week each year;
i.e., week 26. Alternatively, an owner of a floating
week may choose another week within their time
division or may elect to upgrade or downgrade
to another time division to meet their annual
vacation schedule. Upgrading to a higher time
division usually incurs an additional cost.
Floating:
Your time period is defined by a season and your
week period is not fixed. You reserve your time
period within the appropriate season annually.
Most resorts have a High, Medium, and Low Season.
Owners of a floating unit at a resort may not
vacation in the same physical unit each year they
vacation at their home resort. Interval owners
may request a specific unit and, if available
for that particular week, the resort normally
will honor the request.
Floating
Week:
The purchaser of a floating week has the flexibility
of scheduling their vacation interval with yearly
variations in accordance with the resort's guidelines.
Typically, resorts will accept requests for specific
weeks by the interval owner as soon as the annual
maintenance fees are paid. Therefore, the earlier
the maintenance fees are paid the better the chance
that the owner can pick a specific interval week.
Fractional:
Multiple week ownership at the same resort--2
or more weeks of timeshare ownership for use in
one calendar year.
Home
Owners Association:
(HOA) A selected group of timeshare owners that
determine and administer the rules and regulations
at a resort.
Home
Resort:
The resort stated on your purchase agreement or
deed that is provided by the company from which
you purchased your timeshare interval.
Interval:
An assigned period of time. Based on the interval
calendar wherein the fifty-two weeks of the year
are numbered sequentially: Week 01 through Week
52 or Week 53. A specific interval week is a seven-day
period encompassing one of those fifty-two weeks.
Interval
Calendar:
An annual calendar depicting the fifty-two or
fifty-three weeks of each calendar year showing
starting days of Friday to Friday, Saturday to
Saturday, and Sunday to Sunday, check in dates.
Kitchen
Types:
There are several different kitchen types found
in units. Full kitchens will include at least
of a sink, conventional oven and a standard size
refrigerator. Mini kitchens will include the basic
appliances, some of which are smaller than standard.
Partial kitchens do not include all the basic
appliances that are found in a full kitchen.
Lease:
Some states and some foreign countries do not
allow deeded ownership of timeshares. Alternatively,
a lease ownership or Right-To-Use ownership grants
the right to use the property for a specified
period of time; usually from 20 to 99 years. The
resort developer or management company holds ownership
of the physical property.
Lockout
Unit:
Typically, a unit which has the capability of
being divided to create two separate but complete
sections. If an owner buys a lockout unit, he
can divide the unit and either stay in one half
of the unit and rent the other half or rent both
halves to different parties
Maintenance
Fee:
Maintenance fees are established and collected
by the Homeowners Association or Resort Management
Company to maintain the property, pay insurance,
utilities, refurbishing and taxes. These fees
vary from resort to resort and with the type and
size of the unit purchased.
Maximum
Occupancy:
The maximum number of persons an interval unit
will accommodate; usually from 2 to 10 persons.
Maximum occupancy is typically expressed in conjunction
with "private occupancy" referring to
the number of persons the unit will sleep privately
and the number of bedrooms within the unit. Configurations
of units vary from resort to resort.
Odd
or Even Year Usage:
Timeshare ownership usage every other year--some
odd-numbered, some even. The ownership of this
type of interval is valued at one-half the value
of a full ownership property since the use is
restricted to one-half of the annual usage.
OPC:
Off Premise Contact is one who approaches a prospect
outside of the resort grounds and may offer gifts
to lure individuals or couples in to attending
a sales presentation.
Points:
Programs offered to interval owners by resorts
that allow the owners choice and control over
when and where they vacation or for how long or
short they stay. Points are a symbolic unit of
measure having no intrinsic value separate and
apart from interval ownership.
Property
Taxes:
These may be included with the maintenance fees
charged by the resort. Property taxes are regulated
by the state in which the timeshare resort is
located. Some states may not require property
taxes to be paid on timeshare resorts, while others
do.
Quartershare:
3-month interval ownership with rotating schedule.
Rescission
period:
This is the period in which a person has the right
to cancel the purchase of their property and will
not be penalized. When a person cancels within
this time period, he or she will receive a full
refund of any deposits made in connection with
the purchase. The time to rescind varies from
state to state. This is also known as a cooling
off period.
Resort
Ratings:
A system of comparison of resort quality, amenities,
and location. The two foremost rating systems
are Resort Condominiums International (RCI), Interval
International (II). RCI and II rate their affiliated
resorts based upon predetermined criteria of exacting
standards of quality and services provided by
the resort as well as the availability of amenities
at or near the resort. RCI uses the Gold Crown
designation for their highest quality resorts
and Resorts of International Distinction for second-level
resorts. II designates their top resorts as 5-Star
resorts.
Right
To Use (RTU):
Occupancy rights for a specified number of years,
with no ownership interest in the property. Some
states and some foreign countries do not allow
deeded ownership of timeshares. Alternatively,
a lease ownership or Right-To-Use ownership grants
the right to use the property for a specified
period of time; usually from 20 to 99 years. The
resort developer or Management Company holds ownership
of the physical property. However, during the
right-to-use period, the owner may rent, transfer,
or bequeath the remaining years of their right-to-use
property.
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Season:
Designated season of the year denoting period
of ownership for exchange or usage value.
Special
Assessment:
A fee over and above the annual maintenance fee
assessed by the resort pro rata to interval owners.
This fee is, when assessed, is intended to defray
expenses related to major repairs and refurbishing
of resort equipment, facilities, and units
Time
Division:
A system of establishing the value of an interval
week typically based upon season. For example:
a week 3 (Mid January) purchased at a New England
beach resort would not hold the same value as
a mid-summer week at the same resort due to the
fact that the season in January is not conducive
to vacationing on the beach. Time divisions are
expressed as high time or red time meaning prime
time, white time or medium time meaning medium
desirability, or blue time or low time meaning
the least desirable time. Some resorts such as
Hawaiian resorts consider all weeks as prime time
since their tropical climate permits pleasant
vacations throughout the calendar year. Additionally,
many resorts offer year-round activities, often
referred to as four season resorts, in which the
owner may participate in a variety of seasonal
activities. Other factors that affect the interval
week's desirability would be holidays and special
local events.
Timeshare:
An ownership to a resort property or unit that
is shared by others. Each owner has their own
time period (typically one week) in which they
can utilize the facilities, amenities, accommodations
and all attributes associated with the resort.
A timeshare is also known as a “second home”.
Trading
Power: The value assigned
to one’s timeshare when deposited with the
owner’s exchange company and is related
to the exchanging the owner’s unit to use
at another time or location.
Unit
Size:Normally
expressed as hotel unit, studio unit, and efficiency
unit or by number of bedrooms. Hotel units, studio
units, and efficiency units typically are a single
room with sleeping accommodations and perhaps
a small built in kitchen and sleep from two to
four persons. One, two or three or more bedroom
units are usually condominium style accommodations
and feature a partial or full kitchen and other
living areas.
Vacation
Clubs: A type of ownership
where an owner belongs to a club that includes
several timeshare locations and is usually set
up as a point based program. This allows an owner
to do an internal exchange within the resort system
they purchased to use at another location without
paying exchange fees. |
