Timeshare Resales Glossary

In-Depth Definitions Of Timeshare Terms

Terms are in alphabetical order

Anniversary Date

For points system owners, the date each year when points accrue for that year.

Banked Week

If an owner isn't going to use week owned, or if owner wants to use it to exchange elsewhere, the owner can "bank" the week with resort's exchange company. Once "banked" the owner has typically two years in which to request an exchange against the banked week. Important for owner to understand that "banking" it means the occupancy rights to that week belong to the exchange company and someone else will be booked into that time slot, so it will not be available AT THE RESORT for the owner's use, or the buyer's use if the timeshare is being sold to a buyer. Confusion about what "banking" means is a major cause of misunderstanding between seller and buyer in a resale transaction because it is often thought that the banked week is still available when in fact an exchange must be successfully confirmed in order to use the week.

Bonus Time

Discounted rental time available for owner's use in addition to the week(s) owned. Always subject to availability. There are two major categories - one being the ability to call your own resort and request a rental, the other being the ability to call an exchange company and request a rental. The term Bonus Time usually refers to calling your own resort and requesting say a weekend, typically no more than 14 days in advance. Rental of time from an exchange company is officially given a different term such as RCI's "Vacation Escapes®". The rates on these are very good and the space becomes available in resorts where there is an excess of availability, which is most usually NOT during the high season.

Comment Card

RCI sends a comment card to each vacationer who exchanged into a resort. RCI pays close
attention to these cards because RCI has a standard of excellence. If resort falls below standards, it can lose it's affiliation with RCI.
or it can lose it's designation as "Gold Crown" or "Resort of International Distinction (RID)"

Escrow

An escrow is the process of closing a real estate sale in which a licensed third party prepares the documents and handles the closing between buyer and seller. For the protection of buyer and seller, all funds are required to be held in a special secure trust account until closing, at which time the escrow officer disburses funds according to identical escrow instructions signed by buyer and seller. The third party handling the sale must be licensed to do so, such as a licensed real estate broker or escrow company. In the western United States, the majority of closings are handled by real estate brokers, escrow or title companies. In the eastern United States it is more common for attorneys to handle the closing between buyer and seller.

Fee Simple

The highest and purest form of real estate ownership. This type of timeshare 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.

Fixed Week

Weeks are numbered 1-52 (wk 1 being first wk in Jan.) Owner owns same week every year.
See Chapter 3 in our Timeshare Guide for full explanation
See Fixed Week Calendar

Floating Week

Owner does not own a fixed week but rather must call each year and make a reservation. The months during which owner may reserve varies by resort. In some resorts owners may reserve year around, others are limited to certain periods, known as the "reservation period". Before buying a floating-time resort, be sure you know the reservation period.
See Timeshare Principals in our Timeshare Guide for full explanation.

Gold Crown

RCI's top resort rating. See article on subject of Gold Crown.

HOA

Homeowner's Association. Deeded timeshares are structured just like any condominium association, with a homeowner's association comprised of all owners, and a management company hired by the HOA to manage the property.

I.I.

Interval International - second largest timeshare exchange company, www.intervalworld.com

Lockout

A few timeshare resorts have units that are two living units separated from each other by a lockable door, thus the word "Lockout". Since there are really two units, each side can be used separately. One could be used at resort, and the other used for exchange. Or both sides could be used for exchange. The exchange company determines how many weeks of trade are given; typically if both sides have a kitchen, 2 weeks will be given.

MF

Maintenance Fee. Like any condo, timeshare condos have expenses of upkeep and operation. The total expenses are shared by all the owners, and the fee is collected either annually, semi-annually, quarterly, or monthly. Sometimes the maintenance fee includes real estate taxes and sometimes it doesn't.

Points

Some resorts sell, rather than a one week increment, points that relate to an amount of time that can be spent during a given time of year, in a given resort. Annual points owners get the same number of points each year to spend in any of the resorts in that resort system. Each resort has a chart showing how many points it takes for a night's stay during a given day of the week. Points ownership is popular because shorter than a week stays are possible unlike traditional timeshare. Some point systems are deeded, and some are not. The amount of time that can be used each year depends on the number of points owned, and the amount of maintenance fee relates to the number of points owned as well.

Red,White,Blue

RCI color codes pertaining to exchanging during certain times of the year for each resort
based on how high the demand is for time of year. For complete explanation, se the Seasons section of our Online Timeshare Guide© for full explanation.

RID

Resort of International Distinction. RCI's second highest resort rating.

Right to Use (Leasehold)

Ownership is generally of two types, deeded forever (like a house) or right-to-use (RTU) usually for a set number of years. RTU is common where timeshare buildings reside on leased land, such as in Hawaii, Mexico, Palm Springs, and other regions.

RCI

Resort Condominiums International, - Oldest and largest timeshare exchange company, Also has a large travel agency for members. Another leading on-line web site mentioned by Yahoo as the web's largest discount travel site is also highly recommended to find lowest airfares, hotels, car rentals.

Title Insurance

An insurance policy issued by a regulated Title Insurance Company, issued to buyer of deeded property, guaranteeing the buyer that title to the property being conveyed is "clean" - free of liens, loans, and defects of record. The Title Company searches the public records for liens recorded against not only the property, but against the owner as well, because a lien against the individual can also attach to the individual's property.

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*Anniversary Date*	For points system owners, the date each year when points accrue for that year.
*Banked Week*	If an owner isn't going to use week owned, or if owner wants to use it to exchange elsewhere, the owner can "bank" the week with resort's exchange company. Once "banked" the owner has typically two years in which to request an exchange against the banked week. Important for owner to understand that "banking" it means the occupancy rights to that week belong to the exchange company and someone else will be booked into that time slot, so it will not be available AT THE RESORT for the owner's use, or the buyer's use if the timeshare is being sold to a buyer. Confusion about what "banking" means is a major cause of misunderstanding between seller and buyer in a resale transaction because it is often thought that the banked week is still available when in fact an exchange must be successfully confirmed in order to use the week.
*Bonus Time*	Discounted rental time available for owner's use in addition to the week(s) owned. Always subject to availability. There are two major categories - one being the ability to call your own resort and request a rental, the other being the ability to call an exchange company and request a rental. The term Bonus Time usually refers to calling your own resort and requesting say a weekend, typically no more than 14 days in advance. Rental of time from an exchange company is officially given a different term such as RCI's "Vacation Escapes®". The rates on these are very good and the space becomes available in resorts where there is an excess of availability, which is most usually NOT during the high season.
*Comment Card*	RCI sends a comment card to each vacationer who exchanged into a resort. RCI pays close attention to these cards because RCI has a standard of excellence. If resort falls below standards, it can lose it's affiliation with RCI. or it can lose it's designation as "Gold Crown" or "Resort of International Distinction (RID)"
*Escrow*	An escrow is the process of closing a real estate sale in which a licensed third party prepares the documents and handles the closing between buyer and seller. For the protection of buyer and seller, all funds are required to be held in a special secure trust account until closing, at which time the escrow officer disburses funds according to identical escrow instructions signed by buyer and seller. The third party handling the sale must be licensed to do so, such as a licensed real estate broker or escrow company. In the western United States, the majority of closings are handled by real estate brokers, escrow or title companies. In the eastern United States it is more common for attorneys to handle the closing between buyer and seller.
*Fee Simple*	The highest and purest form of real estate ownership. This type of timeshare 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.
*Fixed Week*	Weeks are numbered 1-52 (wk 1 being first wk in Jan.) Owner owns same week every year. See Chapter 3 in our Timeshare Guide for full explanation See Fixed Week Calendar
*Floating Week*	Owner does not own a fixed week but rather must call each year and make a reservation. The months during which owner may reserve varies by resort. In some resorts owners may reserve year around, others are limited to certain periods, known as the "reservation period". Before buying a floating-time resort, be sure you know the reservation period. See Timeshare Principals in our Timeshare Guide for full explanation.
*Gold Crown*	RCI's top resort rating. See article on subject of Gold Crown.
*HOA*	Homeowner's Association. Deeded timeshares are structured just like any condominium association, with a homeowner's association comprised of all owners, and a management company hired by the HOA to manage the property.
*I.I.*	Interval International - second largest timeshare exchange company, www.intervalworld.com
*Lockout*	A few timeshare resorts have units that are two living units separated from each other by a lockable door, thus the word "Lockout". Since there are really two units, each side can be used separately. One could be used at resort, and the other used for exchange. Or both sides could be used for exchange. The exchange company determines how many weeks of trade are given; typically if both sides have a kitchen, 2 weeks will be given.
MF	Maintenance Fee. Like any condo, timeshare condos have expenses of upkeep and operation. The total expenses are shared by all the owners, and the fee is collected either annually, semi-annually, quarterly, or monthly. Sometimes the maintenance fee includes real estate taxes and sometimes it doesn't.
*Points*	Some resorts sell, rather than a one week increment, points that relate to an amount of time that can be spent during a given time of year, in a given resort. Annual points owners get the same number of points each year to spend in any of the resorts in that resort system. Each resort has a chart showing how many points it takes for a night's stay during a given day of the week. Points ownership is popular because shorter than a week stays are possible unlike traditional timeshare. Some point systems are deeded, and some are not. The amount of time that can be used each year depends on the number of points owned, and the amount of maintenance fee relates to the number of points owned as well.
*Red,White,Blue*	RCI color codes pertaining to exchanging during certain times of the year for each resort based on how high the demand is for time of year. For complete explanation, se the Seasons section of our Online Timeshare Guide© for full explanation.
*RID*	Resort of International Distinction. RCI's second highest resort rating.

*Right to Use (Leasehold)*	Ownership is generally of two types, deeded forever (like a house) or right-to-use (RTU) usually for a set number of years. RTU is common where timeshare buildings reside on leased land, such as in Hawaii, Mexico, Palm Springs, and other regions.
*RCI*	Resort Condominiums International, - Oldest and largest timeshare exchange company, Also has a large travel agency for members. Another leading on-line web site mentioned by Yahoo as the web's largest discount travel site is also highly recommended to find lowest airfares, hotels, car rentals.
*Title Insurance*	An insurance policy issued by a regulated Title Insurance Company, issued to buyer of deeded property, guaranteeing the buyer that title to the property being conveyed is "clean" - free of liens, loans, and defects of record. The Title Company searches the public records for liens recorded against not only the property, but against the owner as well, because a lien against the individual can also attach to the individual's property.