Useful Advices

Glossary

Accelerated Use
Accelerated use refers to a program that permits someone to use their purchased time in increasingly larger increments.
Accrued weeks
Any unused weeks from the previous year that have been banked and are available for use this year.
Ad Valorem
A legal term which translates to "according to value". This refers to assessment of property tax.
Anniversary Date
The day on which earned points accumulate, once per year. This applies in the case of timeshare resorts offering a points system.
Appraisal
For real estate, an estimation of the worth of a given property, expressed as market value.
Appreciation
When applied to real-estate, the term "appreciation" means that the property has accrued value over time.
ARDA (American Resort Development Association)
Based in Washington, D.C., this is the foremost trade association representing the timeshare ownership and property development industries. ARDA advocates on behalf of resort owners and developers and also lobbies for the industry. ARDA was first known as the American Land Development Association, originally founded in 1969. Today, ARDA is comprised of nearly one thousand small companies and large conglomerates from all over the world.
Banking
when referring to timeshares, is the option to put away unused weeks, or points, to be used later.
Biennial
Usage of a timeshare week occurring every other year.
Blue Week
RCI's term for a low demand week at a timeshare resort. It is the exact equivalent of Interval International's Green week.
Block Banking (Bulk Banking)
Depositing a large number of weeks into the exchange company "bank" at the earliest time possible.
Bonus Time
Use of your resort in addition to your regular allocated time on a space available basis. A Developer Bonus Week (DBW) is available to members who own at participating resort. These bonus weeks are issued directly from the resort, often issued as a signing bonus upon the purchase of a timeshare interval. Sometimes owners can purchase bonus weeks from the resort as unsold developer-owned weeks. A second type of bonus week is one issued by an exchange company. Owners of high-demand resort weeks receive them as incentives to deposit their timeshare week.
Bonus Weeks
These weeks are generally the lowest value, off season resort weeks often offered as an incentive by a developer or other marketing entity, among other outlets; they cost about $300 each. Bonus weeks are a great opportunity in certain circumstances, and may be purchased by owners direct from the exchange company.
Bulk Banking/Block Banking
Banking a large amount of timeshare weeks with an exchange company as soon as possible.
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.
C.A.R.E.
Cooperative Association of Resort Exchangers. A trade association established in 1985 comprised of resort developers, independent exchange companies, management companies, travel clubs and resort service companies.
Check-In Date
The assigned date and day of week the interval week begins; usually Friday, Saturday, or Sunday. (You will find a calendar here)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 always 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].
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/Trust Membership
Year-round usage of resort facilities with purchase, on a space available basis. This is the most generally used system of timeshare 'ownership' in the United Kingdom and is growing in popularity everywhere else. Owners belong to a Club; their accommodation unit (and sometimes the leisure facilities) are held by Trustees who licence a 'Right-to-Use' to 'Owners'. Sometimes club membership is backed by a deed of ownership, sometimes it is not. (The escritura system in Spain is a deeded system, but deeded timeshare ownership is not legal in the UK and some other countries.)
Constitution
The collection of inter-related legal documents establishing the relationship between timeshare owner, developer, trustee and management company. Effectively the rules by which the resort is run.
Cooling Off Period
The time given to a purchaser following signing of a purchase agreement, during which they may cancel without penalty. In the UK the cooling off period is 14 days, elsewhere in Europe it is 10 days, in Mexico it is 5 days. In the USA the period varies from state to state. See Rescission
CTLS
The computerized information system used by buyers, sellers and cooperating brokers for the purpose of resale and rental of resort properties worldwide.
Day of Use
Owner usage of the resort's amenities while not in residence.
Deed
A legal document providing title to your property; gives you your ownership rights. See Fee Simple. (The escritura system in Spain is a deeded system, but deeded timeshare ownership is not legal in the UK and some other countries. See Club/Trust Membership.)
Deeded Timeshare
Deed Recordation
Arizona law considers delivery of the deed to be the actual transfer of title, and recordation of the deed notice to the world that there is a new owner; consequently recording the deed immediately is important.
Deposit Window
The 24 month period in which owners may deposit their vacation weeks into the exchange pool.
Depreciation
Refers to loss in value of real property. Timeshare properties do not depreciate per se; however, they seldom command a price in the resale market comparable to that originally paid in the developer's sales center.
Developer's Price
The developer's current or market price for a timeshare interval. Full retail price. Includes the developer's marketing costs, etc.
DOS - Director of Sales
The head sales manager, in charge of managing the sales process and all of the timeshare sales reps in a sales room. The actual duties will vary depending on the hierarchy at specific resorts or companies.
End-user Finance
Provision of a loan to enable an owner to purchase a timeshare. Some finance agreements are personal loans (without security) while others are loans secured by the timeshare week or, occasionally, by a mortgage on the principle residence.
Escritura
The Spanish term for the deeding and registering of a 'Deed of Title'. Similar to registration of the Land Registry in England and Wales.
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 (Exchanging)
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. Some resorts have internal exchanges with other resorts which are usually owned by the same company. An example of this would be Sunterra Resorts.
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.
Exchange Confirmation
A written notice provided to both the owner and the resort stating that the exchange request has been received and approved for a particular occupancy date.
Exchange Program
Means any method, arrangement or procedure for the voluntary exchange among timeshare interval owners of the right to use and occupy accommodations and facilities in a timeshare project. Exchange program does not include an assignment of the right to use and occupy accommodations and facilities to purchasers or owners pursuant to a multi-site project reservation system.. The exchange programs are most successful for those flexible in their vacation planning. Restricting demand to a specific date/week or resort may reduce the chances of obtaining an exact request.
Exchange Season
Refers to the system(s) used to establish an exchange value for interval weeks; and is usually based upon desirability of the time of year, typical weather expectations, holidays and special local events. RCI uses .Red., .White. and .Blue. time (in descending order) designations to refer to desirability; Interval International uses .Red., .Yellow. and .Green. in the same manner; other exchange companies use the designations .High., .Medium. and .Low.. Some locations and/or resorts are considered .prime. year-round, due to climate or demand. Most Arizona resorts are in this category. Occasionally resort developers and exchange companies do not agree on the designation for a resort property; verifying the exchange status of your resort with the selected exchange company before membership can eliminate any discrepancies. NOTE - vacation demands can vary from year to year and exchange companies occasionally establish new starting and ending dates for specific resorts or locations. It is wise to consult a current Resort Directory Interval Calendar for actual season dates at a particular resort.
Exchange Values
A high exchange value results from - A popular locale A popular time of year An early submittal and request A high quality resort A low exchange value results from - An unknown locale An unpopular time of year A late submittal or request A low quality resort.
Exit Program
Usually, a reduced cost package/trial program offered to a customer who is on the point of walking away. This serves two purposes - it rescues something for the salesman and entices you to use the resort's facilities in the hope that they will get another crack at selling you.
Factoring Fee ('Factorial')
The Scottish term for the Management Company profit mark-up included in the Management Agreement.
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.
Financing
Usually provided in developers. sales centers, offering terms of 12 to 18% interest on a 3 - 7 year mortgage; and some lenders now offer funding for the resale market. Most reputable Licensed Real Estate Brokers specializing in timeshare can provide financing resources with similar terms. (See our LINKS section) Purchasers often obtain 100 % financing through credit card purchases; interest rates can be attractive, and there is no prepayment penalty. Some sellers are willing to consider seller-financing, generally accepting terms of 30% down, 10% interest, and 36 month payment schedule. Assuming the seller.s existing mortgage is seldom an option.
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. The properties offer a high degree of personal service. The resort locations can vary from the very exclusive locations of a suburban area, to the heart of downtown. The amenities often include - VCR's, CD stereos, garden tubs or Jacuzzis, in-room video library, heated pools and more. Fitness Centers and valet and/or garage parking are typically available. A concierge is also available to assist you.
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 timeshare 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 52 or week 35, etc. Alternatively, an owner of a floating week may choose another week within their season allocation. A floating week owner may also elect to upgrade or downgrade to another season allocation 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 might not vacation in the same physical unit each year. Interval owners may request a specific unit and if it's available for that particular week the resort normally will honor the request. Floating week based on fixed rotation - a type of timeshare ownership in which specific weeks rotate among owners from year to year on a fixed schedule. Common with fractional ownership interests/private residence clubs. Floating week based on ownership rotation - a type of ownership in which the owner purchases week(s) and works out the appropriate vacation time with the other owners on a rotating basis each year.
Floating Unit
Means the vacation accommodation unit available to an owner may or may not be the unit they actually own. This ownership type is popular because it provides more availability to owners.
Floating Week/Time (also called "flex" time)
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.
Fly-Buy
A mini-vacation package where the resort pays all or most of the holiday costs of a prospective purchaser in return for that prospect attending a sales presentation. See Mini Vac.
Fractional
Multiple week ownership at the same resort--2 or more weeks of timeshare ownership for use in one calendar year.
Fractional Ownership
Fractional Ownership is a specific type of deeded vacation property ownership wherein usage and ownership are based on the division of property into shares.
Fractional Package
Annual multiple-week ownership at one resort, usually no more than five weeks (PLEASE NOTE - 12 weeks of ownership or more in one resort may subject the owner to Arizona Subdivision Law and Regulations . and this could be very costly when selling them).
Gold Crown Resort
RCI's highest rating for a resort. This is similar to Interval International's "Five star resort" designation.
Guarantees
Offered with the provision of timeshare resale services are often of little value, unrealistic and possibly fraudulent. Most state Departments of Real Estate discourage or do not allow Licensed Real Estate Brokers to make such assertions regarding real estate transactions. If you are offered a guarantee, ask that it be put in writing and review it carefully with a Licensed Real Estate Broker before making your decision.
Guest Certificate
A certificate issued by the resort's affiliated exchange company authorizing a nominated guest to use an exchange instead of the owners.
Hacienda
The Mexican and Spanish Tax Office.
Heat Merchant
A sales person who is willing to tell even the most outrageous of lies in order to make a sale.
HOA/POA (Home Owners Association/Property Owners Association)
When a resort is sold out or approaching sell out its ownershio is generally turned over to an HOA or POA consisting of the timeshare owners of the resort, with an elected board to administer the rules and regulations. Sometimes a sold out resort will hire an outside management company to operate the resort, collect maintenance fees, etc.; sometimes the developer maintains management rights.
Holiday Club/Vacation Club
A "club" which provides a number of weeks holiday, usually in timeshare apartments. These Clubs are generally not covered by the laws regulating the sale of timeshare and are often not able to fulfill their promises.
Holiday Ownership
Another term for Timeshare.
Home Resort
Means the actual resort at which one owns vacation interval property or the resort of ownership, from which one deposits vacation weeks into the exchange company's spacebank.
II (Interval International)
In-House Reps
Sales staff employed to sell to existing owners who are staying at the resort. See IPC
IPC (Internal Personal Contacts)
Sales staff employed to sell to existing owners who are staying at the resort. See In-House.
IVA
Abbreviation for Spanish Value Added Tax.
Instant Exchange
Services allow owners to conveniently request interval exchange accommodations on short notice (2 to 45 days into the future). Instant exchanges also waive size and season requirements applied in the standard exchange process, which effectively allows members to utilize larger, more luxurious accommodations for short-notice vacations.
Internal Exchange
Refers to the process of exchanging a timeshare week within the resort or developer.s own resort network or Club Membership system. NOTE - the Internal Exchange Fee is required only for the exchange of fixed weeks in most circumstances.
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. View timeshare calendar.
Interval Ownership
Is the term used by developers and sales centers to introduce the concept of Floating Time and Floating Weeks, and distinguish it from the original timeshare product, which was often Fixed Weeks in Fixed Units.
Kitchen Types
Includes no kitchen; partial kitchen (providing some basic items); mini-kitchen (provides all basics, some mini-size); and full kitchen (offering full facilities, full-size appliances and table seating for all occupants).
Lease/Leasehold
Some states and some foreign countries do not allow deeded ownership of timeshares. Alternatively, a lease ownership or Right-To-Use (RTU) ownership grants the leasor the right to use the property for a specified period of time; usually from 20 to 99 years. Ownership of the physical property is held by the resort developer or management company. Most properties in Hawaii, for instance, are leasehold properties. The same is true in Mexico.
Levy
In a points club, the annual charge to members to pay for administration of the club in addition to any management charge or supplementary management charge made for actual use of a week. Also a one-time charge made to owners by an Owners Club or Management Company to pay for major or unexpected costs. See Special Assessment
Linked Agreement
In the UK and Europe a this is method of getting around the law banning the taking of deposits. The Timshare Purchase Agreement, in which no deposit is shown, is linked with another (which might be a holiday voucher [aka - a "cert"] or some other holiday scheme) which is, in reality, the deposit. The two agreements appear to be separate, but in reality they are linked.
Lockout/Lock-off 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.
Lug
At Any time, obtaining a "premium" or higher price for a timeshare week than the developer is currently asking.
Maintenance Fees
Management Company
The company contracted, usually by the Owners Club/HOA, to carry out all the day-to-day management of the resort. Very often owned or controlled by the developer. See HOA/POA
Management Fees
The fees, usually paid annually, by each owner or points club member to cover the costs of running the resort on a day-to-day basis.
Marketing Company
A separate company from the developer responsible for marketing. Sometimes a developer will manage the on-site marketing and employ a separate Marketing Company to manage off-site marketing.
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.
Mini Vac
A mini-vacation package where the resort pays all or most of the holiday costs of a prospective purchaser in return for that prospect attending a sales presentation. View Mini Vacations here.
Mooch
A term used by timeshare sales people to describe prospective buyers who are attending a sales presentation only for the gift, with no intention of even considering a purchase. This is one of the more flattering terms (relatively speaking). There are other industry terms for such people, but they are mostly unprintable. A professional mooch is someone who makes a regular practice of doing this.
Nosebleed drop
A sales term for quickly dropping the initial stated price a precipitous amount without much haggling in between.
NQ (Not Qualified)
A term for prospects who do not fit the qualifications profile outlined by a resort or marketing company trying to make a sale.
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 Premises Contact; Outside Public Contact)
A marketing term used to describe people who approach potential buyers on the street and offer an incentive, such as a gift or tickets to a local attraction, to visit a timeshare project or sales booth to find out more about purchasing options.
OTE (Organistaion for Timeshare in Europe)
The European equivalent of ARDA, but more consumer oriented.
Owner Referrals
Resorts that are in active sales often have special vacation promos that they offer through their current owners. The owners are encouraged to submit referrals and will receive various incentives from the resort for their leads.
PD
The Project Director, who is, at least theoretically, in charge of running all the other departments at a timeshare resort. The actual duties will vary depending on the hierarchy at specific resorts or companies.
Points
Programs offered to interval owners by resorts which 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.
Points Clubs
A timeshare system where owners hold points which entitle them to use a period (varying from a few days to a few weeks) every year from a choice of resorts. Sometimes points are backed by an actual deed, sometimes they are not.
Property Bonds
A system similar to Points clubs for owning shares or bonds in a company owning properties.
Qualified prospect
Consumers who fit the profile that the developer and/or marketer considers are most likely to buy timeshare.
Quartershare
3-month interval ownership, with a rotating schedule.
Rescission
A period of time granted by company policy and state statutes during which a person has the right to cancel a purchase contract for a timeshare without incurring a penalty. The person also receives a complete and full refund of his deposit. Rescission periods vary from state to state. See 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.
Recourse Agreement
An agreement between a Finance Company and a Developer where the Developer pays off any outstanding debt if a purchaser financed by the Finance Company defaults on a Finance Agreement.
Redweek
see Season
Repossession
The removal of rights to use by a Club (or Management Company) for breach of the Constitution (usually non-payment of Management Fees) and the sale of those rights to recover any debt. Deeded property cannot normally be repossessed.
RCI (Resort Condominiums International)
RCI Community
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 lessor 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.
Sales Inspection Visit (SIV)
Developer term for prospective purchasers to stay at a resort for a few days, for a low cost, on condition they attend a sales presentation.
Special Performance Incentive Fund ('SPIFF')
An industry term for a bonus, usually given in addition to a general commission, paid to a salesperson after making a sale.
Season
Exchange Company division of the weeks in a year into popular (Red), shoulder (White for RCI or Amber for II) and off peak (Blue for RCI or Green for II) for the calculation of trading power in exchanges. Each resort may have different seasons depending on the geographic position etc.
Sinking Fund
A portion of the Management Fee specifically dedicated to ensuring that the main structure, furniture and fittings of accommodation units (and sometimes leisure facilities) are kept in an as new condition for the full period of ownership.
Space banking
Depositing a week of owned timeshare with an exchange company. See Banking
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.
Timeshare
TATOC (common usage)
The Association of Timeshare Owners Committees .
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.
Trading Power
The assessed value of an interval week when trading or exchanging for another week within the same resort or at a different resort. In some situations, the owner of a red week at an RCI Gold Crown resort can trade that week for two or more weeks at a resort of lessor distinction or for weeks in a lower time division. Supply and demand rules prevail in this type of exchange and the owners can greatly enhance their trading power with high demand weeks and resorts.
Trustees
A bank, trust company or a group of individuals who hold timeshare accommodation (and sometimes leisure facilities) in trust on behalf of the owners and grant owners a right to-use through a licence (Ownership Certificate). Trustees provide security for owners in the event that a developer fails financially. Some trustees may have added responsibilities such as ensuring the continuity of the Owners Club.
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.
VPG
Value per Guest (Also called the room- or personal- efficiency) -- This measures how efficiently a sales force is doing. You take the dollar volume of your sales and divide it by the total number of guests you toured, and it tells you your VPG. The higher the VPG, the better you are doing. For instance - say that in a week's time you have 7 tours. You sell one of them a deal for $12,000. Divide 12,000 by 7 and you get 1,714.29. Your VPG is 1714. (Dollar volume divided by number of guests= VPG)
Week 53
Almost all Calendars contain only 52 weeks of use in a year - but roughly every seven years there is an extra week, week 53 which is generally reserved for the use of the Developer/Founder Member.

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