Timeshare Glossary

 

Accelerated Use. Filed under Right to Use benefit, this provide timeshare owners access to a vacation estate for a stipulated number of years. It also allows contract owners to use weeks of stay more frequently than what’s stipulated on their plan.

 

Accrued Weeks. Also called Accrued Points, this refers to saved vacation time accumulated and left unused by owner. This is usually specified on a timeshare contract as not all resorts or clubs offer this perk. Often, this stipulation also have certain restrictions.

 

Appraisal. Sometimes called Estimated Value, timeshare appraisal is an assessment of the rental worth or market value of your account. For a reseller, this report will help in marking the best price for you to sell. For a buyer, this will help prevent one from paying too much for certain points.

 

Appreciation. Usually referring to accrued value over time, timeshare plans normally do not appreciate like real estate properties do. Timeshare commonly depreciates over time as it’s considered a non-investment entity.

 

ARDA. American Resort Development Association, or simply ARDA, is a US-based trade association representing timeshare. It does not only promote growth of timeshare, but also regulates and monitors the industry.

 

Biennial. Timeshare arrangement allowing owners access to their plan every other year (EOY). It is considered half as valuable as those with annual clause.

 

Bonus Time. Benefits to timeshare owners allowing them free weeks use, reduced rates or usage even during un-allocated weeks. It is often offered as a sign-on bonus or as incentives to owners.

 

Closing Costs. Fees associated after a resale of a timeshare plan. Closing costs usually cover various services like recording fees, timeshare deed recording cost, and so on. This is usually incurred by a buyer.

 

Club Membership. Sometimes called Trust Membership, this membership offers special privileges like being able to use facilities of the resort year-round. It’s a right-to-use arrangement that has no deed associated with the club or trust.

 

Cooling-Off Period. Also referred to as “rescission”, this is the period of time after a purchase of timeshare program wherein a buyer can cancel a contract or agreement without legal or monetary penalties. Rescission is usually stipulated on one’s timeshare contract and can vary from one resort to another.

 

Depreciation. This means a reduction of timeshare value over time. Though not prone to depreciate, timeshare properties can cost less when resold.

 

End-User Finance. A type of loan provided to an individual wanting to purchase a timeshare property. Many large resort developers offer this financing arrangement themselves to encourage occupancy.

 

Exchange Company. Third-party companies designed to enhance timeshare experience by allowing trading owner’s home resort to other resort within its extensive network. It works like a “bank” that accepts weeks not used or weeks traded as “deposits”.

 

Fixed Unit. Timeshare right-of-use allowing owner usage of a certain room, living arrangement or view. Usually stipulated on a contract and highly recommended for owners with special accommodation needs like say pets.

 

Fixed Week. Owners assigned usage based on stipulated numbered week on a timeshare calendar. Most fixed weeks start on a weekend, but can vary from resort and country.

 

Floating Week. Timeshare owner’s usage wherein week usage is not fixed and determined by season. Owners can freely use their timeshare week allocation on stipulated season.

 

Fractional Ownership. A segment of the timeshare industry, this allows ownership of the property in terms of shares. Property value of Fractional Ownership also appreciates over time making it highly popular but also more pricey than traditional timeshare.

 

Gold Crown Resort. Comparable to a 5-star rating, a Gold Crown Resort refers to the highest rated resort category designated by Resort Condominiums International, a third-party exchange company. It guarantees topnotch services and quality accommodation. It also holds the highest trading or exchanging power within RCI’s vast network.

 

Guest Certificate. A legal certificate of transfer of usable week to a third party entity. This is usually provided by the exchange company with its affiliated resort.

 

Holiday Ownership. Synonymous to vacation ownership, this pertains pre-paying an annual vacation accommodation. It comes in two forms– deeded holiday ownership and points-based holiday ownership.

 

Instant Exchange. A program offered by a third-party exchange company, this allows owners to exchange or use their week on instant or short notice. Notice must be sent at least 2 days in advance.

 

Interval. Unit of time used in timeshare. It generally refers to a 7-day period as most, if not all, timeshares are sold in one-week shares.

 

Lease. This arrangement is applied by resort developers or management companies to areas where deeded ownership is deemed illegal. Lease arrangements are synonymous to Right-to-Use agreements. Common in timeshare for Mexico and Hawaii.

 

Lockout/Lock-Off. Refer to timeshare arrangement designating from 2 to 4 bedrooms, and at least within 2 separate sections. Owner can choose to use or rent out the entire property, rent half and use the other half, or rent both halves to different parties.

 

Maintenance Fee. Fees usually established by the resort developer and often, subsidized during active timeshare sale period. This will then, be handed over to a property’s Home Owners Association at a later time. These fees usually cover maintenance cost of property.

 

Odd-/Even-Year Usage. A specific description for Biennial Usage, it refers to the interval week or weeks basing on the year it’s been used. Odd-year usage, for instance, can refer to occupying stipulated week in 2019 like that of 2017 and 2015. Even-year usage, on the other hand, can mean stipulated week of usage in 2018 can be utilized the same way in 2020.

 

Quartershare. A form of fractional ownership, this refers to a 3-month interval ownership within a stipulated rotating schedule. Quartershare allows owners 13 weeks of ownership annually. It’s a deeded property that can also be resold or deeded to a stipulated beneficiary.