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Trejesto
Title Transfers put together this Timeshare Glossary to help you
become familiar with many of the common and sometimes confusing words and
phrases used in the timeshare industry.
Accrued
Weeks:
The number of weeks that have accrued from the prior year and are now available
for use in the current calendar year. Simply put, accrued means the number of
timeshare weeks that you have banked from previous years that you can use this
year.
Affiliated Resort:
A developer or timeshare resort, that has partnered with or owns resorts in more
than 1 location. This allows timeshare owners to use their week (or accrued
weeks) at the affiliated resorts, commonly found with vacation clubs.
Amenities:
Features that add comfort, convenience, and enjoyment all add to the value of
the property. Outdoor pools, full service marinas, golf courses, shuttle
service, etc. More amenities = higher value and desirability.
Bank or
Banked:
When an owner decides to not use their allocated time for the current year they
can “bank” their time with a timeshare exchange company to use at a later date.
Biennial:
The time assigned to use your timeshare is on an every other year basis. Every 2
Years.
Current
Market Value:
Current or Fair market value is determined by recent sale prices of similar
timeshares. One advantage when you donate a timeshare is that the size of the
tax deduction is determined by the current market value of the timeshare, as
opposed to the cost of the timeshare when it was purchased (Moreover, when you
donate a timeshare instead of selling it outright, donors can avoid paying
brokers' fees.)
Deeded
Property:
A deed is a legal document which is used to transfer from a person or entity
ownership interest providing the title to your property to another. It is used
anytime someone buys, sells, gifts or donate real estate.
Developer:
A company that owns the timeshare resort..
Exchange:
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 timeshare weeks on deposit from its
interval owners/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 exchange value are
- the resorts' rating, the time division; i.e., prime time versus low time, the
size of the unit desired, etc.
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.
Five
Star Resort:
Interval International uses the 5-Star designation for their finest resorts. It
is equivalent to RCI's "Gold Crown Resort". These are timeshare resorts that
offer only the highest level of accommodations and services.
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. 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. 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. 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.
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.
Gold
Crown Resort:
RCI's highest rating for a resort. This is similar to Interval International's
"Five star resort" designation.
Interval
Week:
A specific interval week is a seven-day period..
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 by resort and size.
Odd or
Even Year Usage:
Timeshare ownership usage every other year--some odd-numbered, some even.
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.
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 on timeshare resorts.
Quit
Claim Deed:
Legal document used to release one person's right, title, or interest to another
without providing a guarantee or warranty of title.
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.
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 to
interval owners. This fee is, if assessed, intended to defray expenses related
to major repairs and refurbishing of resort equipment, facilities, and units
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 associated with the resort.
Trading
Power:
The value assigned to one’s timeshare when deposited with the owner’s exchange
company and is related to the exchanging of 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.
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