Vallarta Living | Resort Lifestyles
|A Timeshare Dictionary|
Do you remember your first encounter with a salesperson?
The worst feeling in the world is to be truly interested in purchasing something, and feel hesitant to ask questions because you do not know what the salesperson is actually saying. A purchase made under pressure and in confusion never has a happy ending. It is to your advantage to approach a timeshare tour with prior knowledge and confidence.
This is your purchase and you should be able to participate openly in the conversation and not feel hesitant to ask questions. This is when "knowledge is power." By entering into the tour without your guard up, you will enjoy the opportunity to learn more about Vacation Ownership and feel confident to ask the right questions that will help make a smart purchase.
Here's a quick guide to everyday trade terms in the vacation world...
Accrued Weeks - Weeks that have accumulated from the prior year and are available for use in the current calendar year.
Amenities - Features that add to the value of the property such as swimming pools, tennis courts, boating, golf courses, etc. The more amenities a resort offers, the greater the increase in value and desirability of your purchase.
Bonus Time - Use of your resort in addition to your regular allocated time on a space available basis.
Brand - Many timeshare resorts are part of a major company. The newest meaning of "brand" reflects the addition of major hoteliers who have recognized the potential for company growth through Vacation Ownership. Presently, Vacation Ownership is the fastest growing segment of the tourism industry. Well known chains such as Marriott, Hilton and Hyatt recognized the trend early and were among the first of this category to implement it into their marketing plan. It has actually been predicted that in 5-10 years lodging and timeshare industries will combine into one.
Check-In Date - The assigned day of the week the interval week begins; generally a Friday, Saturday or Sunday. The check-in day begins the seven day interval. Checking in at a later date does not extend the interval week beyond the original checkout date.
Check-In Time - The assigned hour an interval week begins; usually somewhere between 3:00 - 5:00 PM. It is not necessary to check in at the precise time. Checkout time is usually 10:00 - 11:00 AM on the seventh day of the interval week.
Closing Cost - The cost associated with the closing process including: deed preparation or transfer of equity for right-of-use properties, recording cost, escrow fee and administrative fees.
Club Membership - Year-round usage of resort facilities with purchase on space available basis.
CTLS - The computerized information system used by buyers, sellers and cooperating brokers for the purpose of resale and rental of resort properties worldwide.
Deed - Ownership interest providing title to your property. Fee simple.
Deeded Property - True property ownership with deed recorded in the same county where the property exists. This type of property has the same rights of ownership accorded to it as other deeded real estate. The owner may sell, rent, bequeath, or giveaway the property.
Developer's Price - Estimated developer's current or market full price. Full retail price.
Escrow - A special secured account used to hold funds from the buyer and the seller related to closing or purchase and/or sale of property.
Exchange - The process of trading an interval week at one resort for an interval week at another or trading a specific week at the home resort for another week at the same resort. The exchange systems allow an interval owner to trade their week with other interval owners thereby allowing each owner to travel and vacation throughout the world.
Exchange Company - A company or organization which accepts interval weeks on deposit from it's interval members to establish a pool of weeks from which other members may select the resort or vacation times of their choice. When a member deposits their week with an exchange company, the company compares the week the depositor is asking with weeks deposited by other members and provides a suitable match based on availability and value. Factors affecting the "trading value" are; resorts' rating, the time division, i.e., prime time versus low time, the size of the unit desired, etc.
Fee Simple - The preferred type of real estate ownership. This type of interval ownership is the opposite of Right-to-Use or leases ownership and continues forever. The owner holds a deed in his/her name and the ownership of the property can be bequeathed to heirs.
Fixed Unit - A time period that is fixed each calendar year, either by date or by calendar weeks; most in numerical sequence 1-52. With a week number, the actual start date may vary year to year. Unlike a floating unit, the owner will always vacation at a specific physical unit location every year if they vacation at the resort.
Fixed Unit/Fixed Week Deeded Agreement - the purchaser receives a deed specifying use for a specific condominium at a particular time FOREVER. Aside from securing a quality vacation without a worry, the purchasers obtain a voice in the management of the resort, tax advantages and the option to use, lease, exchange or sell.
Fixed Week - Referring to the interval calendar, the purpose of a fixed week property assures the owner that they will always have the same week each year. A floating unit owner may elect to upgrade or downgrade to another time division to meet their annual vacation schedule. Usually, upgrading incurs and 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 season annually. Most resorts have a High, Medium and Low season.
Floating Time - refers to the use of vacation accommodations usually within a certain season of the year; most often it is within a 3-4 month period such as spring or summer. Owner must reserve in advance, with a confirmation which is approved on a first come, first serve basis. Approximately 70% of timeshare in the united States are purchased by this method.
Floating Week - 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 owner can pick a specific week. The early bird gets the worm!
Fractional - Multiple week ownership at the same resort - 2 or more weeks of timeshare ownership for use in one calendar year.
Interval - An assigned period of time. Based on an interval calendar wherein 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 fifty-two or fifty-three weeks of each year showing starting dates of Friday to Friday, Saturday to Saturday, and Sunday to Sunday, check-in dates.
Lease - 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 specific period of time; usually from 20-99 years. Ownership of the physical property is held by the resort developer or management company.
Lockout Unit - Typically, a unit which has the capability of being divided to create two separate units. If an owner buys a lock-out unit, he/she can divide the unit and stay in one half and rent the other half, or rent both halves.
Maintenance Fee - Maintenance fees are established and collected by the Homeowners Association or resort Management Company to maintain the property, pay insurance, refurbishing and taxes. The fees may vary from resort to resort with the type of unit size purchased.
Maximum Occupancy - The maximum number of persons an interval unit will accommodate; usually 2-10 persons. Maximum occupancy is typically expressed as "private occupancy" referring to the number of persons the unit will sleep privately and the number of bedrooms within the unit.
Odd or Even Year Usage - Timeshare ownership usage every other year - some odd, some even. The ownership of this type is valued at one-half the value of full ownership property since the use is restricted to one-half the annual usage.
Points - Programs offered to interval owners by resorts which allow the owners choice and control over when and where they vacation or how short or long they stay. Points are a symbolic unit of measure having no intrinsic value separate and apart from interval ownership.
Purchase Price - This will vary according to accommodation s, the season of use, and the amount of time selected. Typically the purchase is financed by consumer loans of 5-10 years which will vary according to the down payment made.
Quartershare - 3 month interval ownership with a rotating schedule.
Resort Ratings - A system of comparison of resort amenities, quality and location. The two foremost rating systems are Resort Condominiums International (RCI) and Interval International (II). Their affiliated resorts are 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. The highest designation is a Gold Crown according to RCI's system. Resorts on the second-level are resorts of international destination. II designates their top resorts as 5 Star Resorts.
Right To Use (RTU) - Occupancy rights for a specified number of years with no ownership interest in the property. During the RTU period, the owner may rent, transfer, or bequeath the remaining years of their right-to-use property.
Season - Designated season of the year denoting a period of ownership for exchange or usage.
Time Division - A system of establishing the value of an interval week typically based upon a season. Time divisions are expressed as high time or red time meaning prime time, white time or medium time meaning a medium desirability, or blue time or low time meaning the least desirable time. Some resorts may consider all of their time high because of tropical climate conditions permit pleasant vacations year around.
Trading Power - The assessed value of an interval week when trading or exchanging for another week within the same or different resort. Supply and demand rules this situation and the owners can enhance their trading power with high demand weeks.
Unit Size - Normally expressed as hotel units, studio unit, and efficiency unit or by number of bedrooms. Multiple bedroom units are generally condominium style accommodations.
Vacation Ownership - A way to assure future quality vacations for your family. Because resorts share similar amenities and style, you always know what level of quality to expect. Also, the exchange factor, which is the most popular reason among timeshare purchases, enables you to visit exciting new destination worldwide that would not otherwise be a consideration.
Vacation Points or Pointbased - This program provides the flexible use of accommodations throughout various resort locations.Used much like currency, points are used to access.
Yearly Maintenance Fee - All owners share the maintenance cost to ensure the quality of the property stays the same. This fee covers the property management, upkeep of units, refurbishing, utilities and maintenance. This is a small annual expense when you consider that on your vacation you will enjoy the luxuries of home such as a VCR, nice furnishing, and spacious accommodations. Not to mention the additional luxuries such as swimming pools, whirlpools, saunas, and more!