Glossary of Common Timeshare Terms

ACCELERATION

The ability to use your vacation program more quickly (travel more) while shortening the length of the original program.

APPRAISAL

The estimated worth of a timeshare, expressed in terms of market value. Timeshare appraisals are not necessary for buying or selling a timeshare on the resale market and are often considered unreliable. Market value of a timeshare can be estimated by market value survey or the comparing of prices of similar timeshare listings on the resale market.

ARDA (AMERICAN RESORT DEVELOPMENT ASSOCIATION)

The leading organization based in the U.S. upholding professionalism and establishing Code of Ethics within the timeshare industry

BANKING

The ability to save unused timeshare weeks to use later. Banked timeshare weeks can be exchanged for other locations and different timeshare weeks. Banking is sometimes called "space banking".

BIENNIAL OR EOY (EVERY OTHER YEAR)

Allows owners to travel every second year as opposed to every year

CHECK-IN DATE

Typically in the timeshare world check in days are Friday, Saturday and Sunday depending on the resort.

CLOSING COSTS

Expenses at closing on a timeshare property including deed preparation for deeded timeshares, recording fees, administrative fees, escrow costs, and equity transfer for right-to-use timeshares

CRDA (CANADIAN RESORT DEVELOPMENT ASSOCIATION)

The leading organization based in Canada upholding professionalism and establishing Code of Ethics within the timeshare industry

DEED

This legal document demonstrates ownership rights with title to a timeshare property. Once a timeshare property is deeded the owner can bequeath, rent, or sell the timeshare just as an owner can do with traditional real estate properties.

EXCHANGE

The ability to deposit your week into an exchange company(commonly referred to as “space-banking”) and extract a week in another resort somewhere other than your home property.

EXCHANGE COMPANY

A company that coordinates the trading of timeshare weeks that timeshare owners deposit. There are two main timeshare exchange companies. These are Resort Condominiums International (RCI) and Interval International (II). RCI and II are affiliated with more than 5,000 resorts globally and enable a timeshare owner to trade his or her vacation week at a specific resort with another owner's vacation week at a different resort. This process gives timeshare owners worldwide travel possibilities.

FEE SIMPLE

Owners can will their timeshare to anyone they choose

FIXED UNIT

The timeshare owner has the same exact unit every year in the same timeshare resort.

FIXED WEEK

The timeshare owner has the timeshare during a specific numbered week of the calendar year, every year. Timeshare weeks are numbered sequentially from the first week of the calendar year to the last.

FLOATING WEEK

Depending on the timeshare resort's availability, the timeshare owner can use the timeshare during any week of the season purchased. If a timeshare week is in high-season, the owner can reserve any comparable week in the high-season that is available.

FRACTIONAL OWNERSHIP

Typically purchasing multiple weeks (often five) in a resort or condominium style of property. Often, but not always receiving one week per season with one for trading through an exchange company

GOLD CROWN RESORT

The highest rating given by RCI for a timeshare resort which includes the highest of standards and meets all site requirements including available amenities.

INTERNAL EXCHANGE

A timeshare owner can exchange a timeshare week in the same timeshare resort or in another resort within a resort network under the same company ownership.

INTERVAL

In timeshare ownership an interval is a measure of time representing one seven-day week in sequentially numbered weeks from 1 to 52 or 53.

LEASE

These programs typically range from 20 to 99 years and eventually expire. They are often purchased in countries such as Mexico where deeds do not exist

LOCKOUT

Normally a studio unit and a one bedroom unit (make up a two bedroom to sleep eight people) but can be separated to receive more travel but smaller units.

MAINTENANCE FEE/ DUES

The yearly fee a timeshare owner pays the timeshare resort management company or homeowners association for timeshare property upkeep, insurance, utilities, and taxes.

MANAGEMENT COMPANY

A company that manages daily operations of the timeshare resort for a yearly fee to timeshare owners or with funds received by the homeowners association.

POINTS/CREDITS

A numeric form of currency utilized in the timeshare world- Factors considered are unit size, seasons, location, amenities, etc. Points also offer flexibility in terms of shorter stays including nightly travel and various check in dates.

RCI

Resort Condominiums International (www.rci.com) is one of the two main timeshare exchange companies.

RESALE

A timeshare or vacation club being sold by the owner(s) after it was originally purchased from a developer.

RIGHT-TO-USE

A timeshare lease that generally expires after a said period of time- normally (RTU) programs range from about 20 -99 years and whatever is left can be willed, sold, or donated to whomever the owner chooses.

SEASON

Typically there are three colors for different travel times around the world. These seasons are harmonious with demand in each area. To travel high time is indicated by (red) to travel mid-season is (white) and to travel low season is (blue). With other travel clubs there can be other colored seasons as well.

SPECIAL ASSESSMENT

An additional fee over the yearly maintenance fee levied for special circumstances such as a major timeshare resort refurbishment.

TIMESHARE

The purchase or lease of a resort for an interval of time with the option to exchange for other time intervals at the same or a different resort. Timeshare ownership allows for affordable vacationing in that the timeshare owner only pays for an increment of time in contrast to full ownership of a vacation property.

VACATION CLUB

Also known as a holiday club, this is an organization which is unregulated by laws covering the sale of timeshares. Buyers need to be aware of companies that are less than reputable. A vacation club offers timeshare weeks to its members.

VACATION OWNERSHIP

A recent term as of late synonymous with the word timeshare. Often used by multi-destination clubs that are aligned with flexible points systems.