Glossary of common industry terms for Vacation Ownership / Timeshare Resort Terms

RealEstateBuySellExchange.com has mentioned previously, each industry has it own vocabulary and timeshare resort / vacation ownership is no different.

RealEstateBuySellExchange.com has listed below some of the more common terms and phrases related to the timeshare resort / vacation ownership real estate.

Accelerated Use: When a person wants to accelerate usage of the time purchased they can request to use more weeks use in a shorter time period. For example, if a person purchases a right to use a one week every year for 12 years, then may elect to take two weeks every year for six years. Any changes in weekly uses is obviously subject to availabilities.

Accrued Weeks: When a person does not use their week during the previous year they are "banking" weeks to be used in the current or future years.

All India Resort Developers Association (AIRDA): This is a large trade association for the timeshare industry in India.

Amenities: Any items or features which adds to the value of a resort property. The more amenities a resort offers their members creates a better value and desirability of that resort. Amenities for example could be tennis courts, golf courses, swimming pools, spas, workout facilities, laundry facilities, dining, general activities, etc.

American Resort Development Association (ARDA): This is a trade association for the timeshare industry located in the United States. The association is designed to provide lobbying and support to the timeshare industry.

Banking: When a member places a week of timeshare usage into an exchange company to be used in the future.

Biennial: When a timeshare purchaser buys usage of a fixed week every other year, (EOY). This is also commonly called Odd or Even year owners.

Bonus Time: When the members of a specific resort are offered an extra week usage directly from the developer of the resort. When developers have unsold weeks, they sometimes offer them to existing purchasers. Bonus weeks are sometimes used by exchange companies when an owner is trading a higher demand week for lesser demand weeks at another resort.

Camping Membership: Similar to timeshare of resorts, a Camping Membership is for resorts that also cater to campers. Some timeshare resorts throughout the United States also have camping facilities by membership.

Check In Date: The actual date of the week when you are expected to arrive at your timeshare resort. Usually, check in days of the week are Friday, Saturday and Sunday. Your seven days start from your check in date, regardless if you arrive late. For interval owners, their check in dates may vary.

Check In Time: On your check in date, you interval week begins usually between 3p and 5p prevailing time zone. Check out time is usually between 10a and 11a on the seventh day from scheduled check in date. Your seven days start from your check in date, regardless if you arrive late.

Closing Costs: Any costs associated with the legal closing process of buying a timeshare. Those costs include; escrow fees, deed preparation, transfer, recording fees, administrative fees. etc.

Club/Trust Membership: This is the most generally used system throughout the timeshare owner in United Kingdom. Using space available, members can use the facility year round. These Club memberships are held in a trust who issue a "Right to Use" for the owners. Deed of ownership is sometimes issued or not for this type of membership depending on the country. For example, the Escritura system used in Spain is a full deeded system, but in the UK and some other countries timeshare owners do not received deeded ownership.

Deed: This is a legal document showing ownership and rights.

Deeded Property: Property that is recorded with the county / state the timeshare resort resides within. This gives owners of deeded timeshare property the exact same rights and any deeded real estate within that county. For example owners can rent, give away, sell, bequeath their property ownership.

Escritura: Spanish term for the deeding / registering of a "Deed" for the purchaser.

Escrow: When buyer and seller agree to a price, the assets are held in a special secured account until the completion of the sale.

Exchange: When a timeshare owner wants to trade an interval week with another resort, or trading a particular week at the home resort to another week. This allows owners of timeshare resorts to trade and experience vacationing at other resorts.

Exchange Company: This is a company designs to match timeshare owner requests to exchange their week usage with other timeshare resorts. Owners place their week(s) usage with these companies and thus allowing other owners to exchange for weeks usage on availability.

Fee Simple: This is a real estate term used when describing a type of ownership. Unlike the Right to Use ownership, Fee simple ownership continues forever. Owners receive a deed in their name and the property can be sold, rented, given away or bequeathed to heirs.

Fixed Unit: Each calendar year a timeshare owner on Fixed Unit knows exactly what unit they can use their resort. The fixed units are divided between weeks 1-52. A fixed unit timeshare owner will have usage of their resort for the same unit every year. This is highly desirable for buyers who want to enjoy certain holiday weeks, event weeks, views, and want to have a particular unit each year.

Fixed Week: Similar to Fixed Unit, Fixed Week guarantees the owner they will receive the same "week" usage every year. With fixed week you may or may not be guaranteed the fixed unit, just the fixed week you may enjoy your resort.

Floating: When a fixed week is not determined, the buyer of a timeshare resort is given a season and your particular week usage is during that season. Each year you may select a week usage at your resort within the season you purchased. Floating system does not give the owner the right to request a specific unit each year, but only a specific week, if available, within the season they purchased. Each season is rated by desirability and generally an owner can trade for other seasons usage with a fee involved.

Floating Week / Flex Time: Buyers of floating week usage have the flexibility of selecting their usage according to resort guidelines. Usually, resorts honor requests when the yearly maintenance fees are paid, therefore it is good for this type of buyer to pay their maintenance fees early and have a better chance to obtain the exact week they prefer.

Fractional: When a person elects to have more than one week ownership at the same resort, one or more months, usage in one calendar year.

Guest Certificate: This is a certificate issued by the resorts exchange company allowing a guest to use the week instead of the actual owner.

Holiday Ownership: This is another term that is used around the world for timeshare or vacation ownership.

Home Owners Association / Property Owners Association (HOA/POA): As the timeshare resort nears completion of all units to be sold, an elected board is selected to administer the rules and regulations of the resort. The HOA / POA is established and they determine the destiny of the property and collect maintenance fees, etc. Often HOA / POA elect to have the developer continue to maintain the resort because of prior expertise.

Interval: A set period of time based on the calendar divided into 1-52 weeks. These intervals are seven days periods.

Interval International (II): This is the second largest exchange company worldwide.

Lease / Leasehold: Some foreign countries and a few states do not issue deeds for timeshare owners. Therefore, lease ownerships, or Right to Use ownerships are given to the purchaser instead of a deed for the use of the property for a specific time period, generally 20-99 years. This is especially common in Mexico and Hawaii.

Lockout / Lock-off Unit: Larger timeshare units that have the capability of being divided into two separate parts are called lockouts. Persons buying a lockout unit can stay both halves, rent one half, or rent both halves.

Maintenance Fee: All fees that are generated for the resort and are collected by the Home Owners Association or Resort Management Company in connection with maintaining the quality of the resort. These fees include, insurance, taxes, utilities, refurbishing, exterior maintenance, and any other cost associated to keeping the quality of the resort in excellent condition. A set amount each year is held back to pay for expenses that happen on a non yearly basis, such as furniture replacement, capital costs, normal weather deterioration, painting, major repairs to swimming pools, spas and other major repairs.

Management Company: Selected by the Home Owners Association (HOA) a company is contracted to execute the daily management of the resort. Often this company is the company set up by the developer from the resorts creation.

Management Fees: A fee, usually paid annually, to the Management Company to pay for the costs of running the resort on a daily basis.

Maximum Occupancy: Total number of people an interval unit will accommodate is called the maximum occupancy. Usually this number is between 2 - 10, depending on size of unit purchased.

Odd or Even Year Usage: Some timeshare resorts offer the ability to purchase odd or even year usage instead of every year usage.

Organization for Timeshare in Europe (OTE): This is the European equivalent of ARDA, however this organization is more for the consumer.

Points: Many resorts calculate timeshare ownership in points, and these points can be redeemed at various resorts owned by the developer. Using points the timeshare owner can elect to stay longer or shorter in any year and switch from resorts every year if they wish.

Points Clubs: These clubs allow timeshare owners to redeem their points for various resorts around the world. These points allow a different length of stay at various resorts.

Quartershare: Rather than buying the tradition one week usage, some timeshare owners by 3 month interval ownership. This type of ownership usually involves a rotating schedule to determine what months usage the owner is entitled to each year.

Resort Condominiums International (RCI): One of the largest resort timeshare exchanges in the world.

Right To Use (RTU): These are the rights given to a buyer of timeshare where no ownership interest in the property is involved. Right to Use is the nearly identical as lease ownership. Some foreign countries and a few states do not issue deeds for timeshare owners. Therefore, Right to Use ownerships are given to the purchaser instead of a deed for the use of the property for a specific time period, generally 20-99 years. This is especially common in Mexico and Hawaii. Resort developer or Management Company actually holds the ownership for the physical property of the resort. With Right to Use period, the owner can rent, transfer, or bequeath the remaining years of their Right to Use property.

Space banking: Space banking is the same as Banking, this is where the timeshare owner puts a week(s) into an an exchange company for later use, trade or sale.

Timeshare: Sometimes referred to as "Vacation Ownership" or "Holiday Ownership" or "Multi Ownership" or "Group Ownership", timeshare is the right to shared with others, the occupancy a unit of accommodation for a period of time, usually a week. Timesharing is commonly used in real estate, but can also be used in luxury yachts, airplanes, motor homes and other expensive items that people prefer to use only a short period of time each year.

Unit Size: Units are usually described by the number of bedrooms or by real estate terminology such as hotel units, studio units, efficiency units, etc. When talking about one, two or three bedroom accommodations they usually contain a partial or full kitchen and living areas.