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Timeshare Glossary

Timeshare Glossary - Page 3 of 4

 

Instant exchange
An exchange of timeshare intervals on short notice through RCI.

Internal Exchange
Internal Exchange refers to exchange of a week of vacation ownership within a particular resort network.

Interval
An assigned period of time. Based on the timeshare weeks calendar wherein the fifty-two weeks of the year are numbered sequentially: week 1 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 timeshare weeks 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

Interval International
Interval International, the second largest exchange company in the world.

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.

IPC or In-House Reps
Also called IPC (Internal Personal Contacts). They are sales staff that try to sell weeks to people staying at the resort.

Levy
Among members of a points club, the term levy refers to administrative fees incurred by individual members. Levies can also encompass any charges the resort management may impose for use of a particular week.

Linked Agreement
In Europe, this is a method of getting around the law banning the taking of deposits. The Timeshare 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
Some timeshare condominium units are referred to as "lock-offs." A lock-off, sometimes called a lockout, is a unit that can be divided into two separate sections. The owner of a lock-off has several options when it comes to renting out the unit. He or she can choose to rent the entire unit to one party, stay in one half of the unit and rent out the other half, or rent out both halves to different parties. Lock-out sample...

You need to be aware that, though the full unit may have a full kitchen and laundry facilities, the lock-off portion will likely look more like a hotel room with one room, a bathroom, and possibly a small kitchenette. Before renting, make sure to ask whether you are getting a lock-off, and confirm the unit size and amenities in writing.

Maintenance fee
Maintenance fees are established and collected by the Home Owners Association or Resort Management Company to maintain the timeshare resort property, pay insurance, utilities, refurbishing, and taxes. These fees vary from resort to resort and with the type and size of the unit purchased. The cost of resort operation is spread among owners. This fee must also build up reserves to pay for non-recurring costs like furniture, appliances, etc. that need periodic replacement, and other capital costs as normal physical deterioration occurs. Note: During the active sales period, maintenance fees may be temporarily subsidized by the developer as a marketing tool. When the HOA takes over, fees may rise to unsubsidized levels.

Management company
The Management Company is a company responsible for running the resort on a day-to-day basis.

Management Fees
The fees, usually paid annually, by each timeshare owner or points club member to cover the costs of running the resort on a day-to-day basis.

Maximum Occupancy
The maximum number of persons an interval unit will accommodate, usually two to ten people. Maximum occupancy is typically expressed in conjunction with "private occupancy" referring to the number of people 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.

Odd- or even-year usage
Odd or Even Year Usage is vacation property ownership where the owner can use his or her property every other year. also known as Biennial usage.

OTE (Organisation for Timeshare in Europe)
The Organization for Timeshare in Europe is a trade association in Europe composed of resort owners and developers.

Points
Points are a unit of measurement used by exchange companies and timeshare owners to establish value for seasons, sizes of resorts, and resort locations.

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.

Quartershare
Three-month interval ownership with a rotating schedule.

RCI
RCI (Resort Condominiums International) is the largest timeshare exchange company in the world.

Red Week
The term "Red Week" refers to the peak season at a resort during which timeshare properties are at their most desirable. The most desired vacation time used in both the Interval International and RCI exchange networks.

Resale
A Resale timeshare is a vacation property being advertised for sale after it was originally purchased from the resort developer.

Rescission
A Rescission is a grace period allowed by law and/or company policy during which a timeshare buyer has the right to cancel a purchase agreement without penalties.

Reserve fund
A fraction of a resort's management fee that is allocated specifically to ensure that the facilities and furnishings are kept in "like new" condition.

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. II designates their top resorts as Premier resorts.

Right to use (RTU)
A lease, 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.

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