Table of Contents
A —
Abstract of Title:
A summary of the property’s legal ownership history, including claims, liens, and encumbrances.
Accelerated Use:
The option to use multiple vacation weeks in a shorter time frame (e.g., using two weeks in one year instead of one per year over two years).
Accrued (Banked) Weeks:
Unused timeshare weeks rolled over for future use when allowed by the resort or exchange program.
Ad Valorem:
A property tax based on assessed value, often included in a timeshare’s annual maintenance costs.
Advance Fees:
Charges collected before services like resale, rental, or cancellation are performed. These are often non-refundable and considered a scam risk unless handled via escrow.
All-Inclusive:
A resort offering accommodations, meals, drinks, and activities under one bundled price.
Annual Fee:
A yearly fee paid by owners to cover maintenance, property upkeep, staff, utilities, and taxes.
Annual Usage:
Timeshare ownership that grants the right to use a unit every calendar year, offering consistent vacation opportunities and predictable planning.
Assessment Fee:
A one-time fee charged to owners to fund unexpected repairs, upgrades, or emergency expenses.
Assignment:
The official transfer of a timeshare ownership or usage rights from one party to another.
Assigned Use Right:
A deeded or contractual right allowing a timeshare owner to occupy a specific unit, type, or suite—such as a Presidential Reserve Suite—automatically each use year.
B —
Banking:
The process of saving unused timeshare weeks or points to be used in future years, typically through an exchange company.
Beneficial Interest:
Typically refers to ownership in a trust-style timeshare structure (not legal title).
Bi-Annual Usage:
Timeshare ownership weeks) available every other year. Often referred to as an ‘odd’ or ‘even’ week usage.
Biennial Ownership:
A timeshare arrangement in which usage rights are granted every other year.
Bonus Time:
Additional vacation time offered to owners, usually at a discounted rate and subject to availability.
Borrowing Points:
When a member doesn’t have enough points for a reservation in their current Use Year, they can borrow points from the following Use Year—typically during the express reservation window and only for travel dates that fall after the check-in.
Breakage:
Unused inventory in an exchange system that goes unclaimed—sometimes used for profit by the developer or program.
Bulk Banking:
When resorts deposit large amounts of inventory into an exchange program, increasing availability.
C —
Check-in Date:
The official start date of your timeshare stay, typically scheduled on a Friday, Saturday, or Sunday, depending on the resort. Your seven-night interval begins on this day and ends exactly one week later. While you’re not required to arrive exactly on the check-in day, arriving late won’t extend your stay—your checkout date remains fixed. Important: If you’re arriving late, notify the resort ahead of time. Some properties have strict policies and may reassign your unit if you miss the check-in window.
Check-in Time:
The specific hour your unit becomes available on your check-in day—commonly around 3:00 PM to 5:00 PM local time. Check-out is typically between 10:00 AM and 11:00 AM on your departure day.
Check-out Time:
The designated time you must vacate the unit on your departure date—usually 10:00 AM or 11:00 AM local time. Failing to check out on time may result in additional fees.
Closing Costs:
Fees associated with finalizing a timeshare sale or transfer. These may include deed preparation, transfer documentation (for right-to-use contracts), recording fees, escrow handling, and administrative charges. These costs can vary depending on the property, location, and whether a third party is involved in the transaction.
Constitution:
The governing legal framework of a timeshare resort. This includes a collection of documents—such as bylaws, trust agreements, and management contracts—that define the roles and responsibilities of the developer, owners, trustees, and the management company. It’s essentially the rulebook for how the resort is operated and managed.
Cooling-Off Period:
A legally mandated window (often a few days) during which a buyer can cancel a timeshare contract without penalty.
Contract:
A legal agreement outlining the terms, conditions, fees, and rights associated with timeshare ownership.
Club Membership:
A flexible form of timeshare ownership where members use points to access different properties.
Conversion Fee:
A charge to convert fixed weeks into points or access broader exchange privileges.
D —
Deed:
A legal document providing title ownership of a timeshare unit and granting property rights.
Deeded Ownership:
A type of ownership where the buyer receives a deed to a fraction of the property, much like traditional real estate.
Deeded Property:
True property ownership with deed recorded in the 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 give away the property.
Developer:
The company that builds, sells, and often manages the timeshare resort.
Developer’s Price:
The initial retail price set by the resort’s developer.
Default:
Failure to pay required fees or mortgage payments, which can lead to foreclosure or repossession.
E —
End-User Financing:
A loan used to purchase the timeshare, which may be secured against the property.
Equity:
The ownership value an individual has in their deeded timeshare property.
Escrow:
A third-party account used to hold funds during the purchase process until all terms of the transaction are met.
Exchange Program:
A service allowing owners to trade their timeshare week or points for stays at other affiliated resorts worldwide.
Exchange Company:
A third-party service (like RCI or Interval International) that facilitates trading vacation weeks or points.
Exchange Fee:
A fee paid to process a timeshare exchange within a program.
F —
Fixed Apartment:
A reservation at a resort which can be assigned to the same specific unit/room number each year.
Fixed Unit:
A specific timeshare unit assigned to an owner that does not change year to year. Owners return to the same unit for their designated stay.
Fixed Week:
Ownership of the right to vacation during the same calendar week each year, typically tied to a specific unit.
Floating:
A flexible timeshare model where owners can choose their travel week within a set season or time frame, based on availability.
Floating Apartment:
A reservation at a resort which is not assigned to a specific number each year and is allocated upon availability.
Floating Week:
A usage plan allowing the owner to reserve any available week within a designated season, rather than being locked into the same dates annually.
Fly-Buy:
A heavily discounted vacation package offered to prospects in exchange for attending a timeshare sales presentation. Also called a Mini-Vac.
Foreclosure:
The legal process in which a resort reclaims a timeshare due to the owner’s failure to pay maintenance fees or mortgage obligations.
Fractional Ownership:
A form of vacation ownership where the buyer purchases a larger share of time—often weeks or months—typically in a luxury resort or residence.
Full-Service:
A resort offering on-site amenities such as restaurants, spas, concierge, pools, and housekeeping, providing an all-inclusive experience without leaving the property.
G —
Gold Crown Resort:
Resort Condominium International’s highest rating for a resort.
Grantor:
The seller in a title transfer. The grantor is the person who owns the property and is in the process of granting all rights of ownership to the grantee.
Grantee:
The buyer in a title transfer. The grantee is the person who is receiving rights of ownership to a property from the grantor.
Guest Certificate:
A document allowing someone other than the owner to use the timeshare for a specific stay.
Grace Period:
The time after a missed payment during which the owner can still fulfill the obligation without penalty.
H —
Heat Merchant:
Refers to a sales person who will say anything in order to make a sale, even if it is misleading or untrue.
HOA (Homeowners Association):
A group of owners managing the resort’s operations and maintenance budget.
HOA Fees:
Also called a maintenance or management fee. An annual or semi-annual charge by a resort for upkeep of the property and associated taxes, insurance, etc. These fees vary from resort to resort and with the type and size of the timeshare unit purchased.
Home Resort:
The original resort where an owner purchases their timeshare; often provides booking priority.
Hybrid Ownership:
A blend of deeded and points-based systems, offering both fixed property rights and flexible travel options.
I —
Instant Exchange:
A last-minute exchange option offered by some programs, often at a reduced fee or discount, allowing owners to book unclaimed inventory quickly.
Internal Exchange:
The ability to trade your vacation week or points within the same resort brand or affiliated resort network.
Interval:
A specific time slot—typically one week—during which a timeshare owner is entitled to use their vacation unit.
Interval Calendar:
A standardized calendar system used to match fixed week numbers to actual dates, such as those used by RCI or Interval International.
Interval International:
One of the two major global timeshare exchange companies, enabling owners to trade their stays across thousands of resorts worldwide.
Inventory:
The total available accommodations (units, weeks, or points) a resort or exchange company offers to its members for booking or trading.
J —
Joint Ownership:
A legal arrangement where two or more individuals share rights and responsibilities for the same timeshare interest, including usage and fees.
Joint Tenancy:
A form of shared property ownership in which equal rights are granted to all owners, and upon one owner’s death, their share automatically transfers to the surviving owner(s).
K —
Key Card Access:
A common resort feature that restricts unit entry to authorized guests using electronic key cards.
Kiosk Check-In:
A self-service terminal at resorts that allows guests to check in quickly without going to the front desk.
Kitchen Designations:
Classifications for the kitchen setup in a timeshare unit, such as no kitchen, partial kitchen (with limited appliances), or full kitchen (with stove, refrigerator, and cookware).
L —
Lease:
An arrangement allowing property usage where deeded ownership is restricted by law. The resort retains ownership, and buyers receive a Right-To-Use (RTU) for a set period, typically 20 to 99 years.
Leased Unit:
A timeshare unit held under a lease agreement rather than owned outright. See Lease.
Levy:
Administrative fees charged to members of a points club. These may cover regular usage or one-time costs, similar to a Special Assessment.
Linked Agreement:
Two related contracts used to bypass deposit regulations—common in European sales—where the purchase agreement omits a deposit, but another contract handles the payment.
Listing Agreement:
A contract between a timeshare owner and a resale company or broker to list the property for sale. Licensed real estate brokers are recommended.
Listing Fee:
A charge for advertising a timeshare on resale platforms or websites.
Lock-Off Unit:
A type of unit that can be separated into multiple accommodations, allowing for more flexible usage or guest stays.
Loyalty Program:
A rewards system offered by resorts to incentivize frequent usage, often tied to ownership or exchange participation.
Lug:
A sales tactic where a timeshare is sold for more than the developer’s listed price.
M —
Maintenance Fee:
The annual charge paid by timeshare owners for resort upkeep, utilities, amenities, staff, and shared services.
Management Company:
The organization responsible for handling daily resort operations, typically contracted by the Homeowners Association (HOA).
Management Fees:
Costs paid to the Management Company for overseeing resort functions. These fees may be separate from or included in Maintenance Fees.
Market Value:
The estimated resale worth of a timeshare based on current demand, condition, and comparable listings.
Maximum Occupancy:
The highest number of individuals legally allowed to stay in a timeshare unit.
Membership Fee:
A recurring charge (monthly or annually) to remain enrolled in a vacation club or points system.
Mini Vac:
A discounted mini-vacation offered as a promotion in exchange for attending a timeshare sales presentation. See Fly-By.
Mooch:
Industry slang for a guest who attends a sales presentation solely for the promotional gift, with no intent to purchase.
Mortgage:
A financial lien against a timeshare ownership, typically for financing the purchase. In some states, it may include unpaid Maintenance Fees or Special Assessments and is subject to Foreclosure upon default.
N —
Non-Deeded Ownership:
A usage agreement without property ownership; often referred to as “Right-to-Use.”
Nosebleed Drop:
When a salesperson quickly drops the initial price to make a quick sale.
Notice of Cancellation:
A document officially submitted by the buyer during the cooling-off period to cancel the agreement.
Not Qualified (NQ):
Potential purchasers who do not meet the buying qualifications outlined by a resort or developer. This could be based on age, employment status, marital status, or income.
O —
Occupancy Date:
The specific check-in date for an owner’s use period.
Odd/Even Year Usage (EOY):
Ownership with access every other year—either odd or even numbered years.
OPC (Off Premises Contact; Outside Public Contact):
A person who approaches potential buyers in public areas, offering incentives like gifts or attraction tickets to encourage attendance at a timeshare presentation.
Owner’s Association:
A governing body composed of timeshare owners that manages the resort’s policies, budget, and operations.
Owner Services:
A department dedicated to assisting owners with reservations, exchanges, payments, and account management.
Owner Referrals:
When a current timeshare owner refers new prospects to the resort, often receiving gifts, perks, or account credits in return.
P —
Points:
A currency-based system where ownership is represented in points redeemable for stays across a network of resorts.
Points Conversion Program:
Where timeshare owners pay a fee to convert their initial interval for the equivalent in points.
Pre-Construction Sale:
A purchase of a timeshare before the resort is completed, often at discounted prices.
Premium:
Incentives given to prospective purchasers to attend a timeshare sales presentation.
Primary Market:
The first offering of a timeshare resort to the public.
Principal:
The main party in a transaction, usually the seller.
Private Occupancy:
The number of people who can sleep in a unit privately (i.e., with their own bed or separate sleeping space).
Private Residence Club:
A luxury variation of timeshare ownership offering upscale accommodations and amenities.
Property Bonds:
A system similar to points where you hold an interest in a portfolio of properties.
Public Offering Statement:
A disclosure document provided to buyers before finalizing a purchase. It includes detailed information about the resort, developer, and the buyer’s legal rights, including the right to cancel within a set timeframe.
Q —
Qualified Prospect:
An individual who meets the eligibility requirements (e.g., income, marital status) to attend a timeshare sales presentation.
Quartershare:
A type of fractional ownership where the buyer owns the right to use the property for one quarter of the year—typically 13 weeks.
Quiet Title:
A legal process used to resolve disputes or correct defects in a property’s title, often necessary before a timeshare can be resold.
Quitclaim Deed:
A legal instrument used to transfer ownership interest in a property without warranties, meaning the grantee accepts the property “as is.”
R —
Recourse Agreement:
A financing arrangement in which the developer agrees to repay the loan if the buyer defaults—often used to reassure lenders.
Redemption Certificate:
A voucher or premium reward tied to a timeshare promotion, redeemable for local goods, services, or travel perks near the resort.
Red Week/Season:
The most popular, in-demand vacation weeks, typically during holidays or peak travel seasons. These have high trade value in exchange systems.
Rentals:
Timeshare weeks that can be rented out by the owner or resort, usually for extra income or to cover maintenance fees. Restrictions may apply.
Repossession:
When a resort or lender reclaims a timeshare due to unpaid mortgage or maintenance fees. This is similar to foreclosure in traditional real estate.
Resale:
The process of selling a timeshare on the secondary market after the initial purchase from a developer.
Resale Market:
A platform or marketplace where existing owners sell their timeshare interest—often at a steep discount compared to the original price.
Resale Prices:
The price a timeshare can fetch on the secondary market. Many resale listings go for $1 or less due to low demand and high ongoing fees.
Rescission:
The legal grace period (typically 3–10 days) where new buyers can cancel their contract without penalty and receive a full refund. Laws vary by state or country.
Reserve Price:
The minimum sale price an owner sets when listing a timeshare for auction. If the bids don’t meet this threshold, they’re not required to sell.
Resort Condominiums International (RCI):
The world’s largest timeshare exchange company, allowing owners to trade weeks or points globally. Owned by Wyndham.
Resort Development Organization (RDO):
A European industry group similar to ARDA, promoting best practices and consumer protection in timeshare.
Resort Directory:
A comprehensive listing of properties available through a specific exchange company for points or week-based trades.
Resort Ratings:
Evaluation systems by companies like RCI and Interval International that rate resorts based on quality, service, amenities, and customer feedback.
Request Window:
The designated time frame when owners can submit reservation requests for desired weeks or locations. Earlier requests often increase chances of availability.
Right of First Refusal (ROFR):
A clause in many contracts that gives the developer the option to match a resale offer before a unit is sold to another party.
Right-to-Use (RTU):
A non-deeded ownership model where the buyer leases usage rights for a specific term (e.g., 30 years). No actual property is owned.
S —
Sales Commissions:
Fees paid to a resale company or broker for helping to sell a timeshare. These may be flat fees or a percentage of the sale price. Beware of up-front fees—licensed brokers are typically paid through escrow after closing.
Sales Inspection Visit (SIV):
A promotional stay offered at a reduced rate to prospective buyers, often requiring them to attend a timeshare sales presentation. Also known as a Fly-By or Mini-Vac.
Sales Presentation:
A required informational session where potential buyers learn about the benefits of ownership. Incentives such as gifts, travel credits, or free stays are often provided for attendance.
Scalability:
The ability to increase your ownership level, such as purchasing more points or upgrading your membership to access larger units or more flexible travel options.
Season:
Specific times of the year categorized into value tiers—like high, mid, and low seasons. These affect availability, pricing, and exchange value. Red Weeks signify peak demand; Blue or Green Weeks indicate off-season.
Seasonal Ownership:
A usage model that grants access only during certain times of the year, typically tied to seasonal popularity and pricing.
Shares in a Company:
A timeshare structure where owners hold shares in a resort’s management company, combined with a Right-to-Use agreement. This offers usage rights without deeded ownership.
Sinking Fund:
A reserve fund included in annual fees, used for major repairs or renovations to keep the resort in good condition over time.
Space Banking:
Depositing unused vacation time (weeks or points) into an exchange system to save or trade for future travel.
Special Assessment:
An extra fee charged to owners for unexpected expenses or major resort improvements, separate from routine maintenance fees.
Special Performance Incentive Fund (SPIFF):
A bonus paid to timeshare sales reps as a reward for meeting sales goals, often on top of standard commissions.
T —
TATOC (The Association of Timeshare Owners Committees):
A now-defunct UK-based group that once advocated for timeshare owners across Europe, promoting accountability and fair practices.
TCPAA (Timeshare Consumer Protection Alerts and Advisories):
A U.S. organization providing education, alerts, and scam prevention tips for timeshare owners.
Tenancy in Common:
A legal ownership structure where multiple individuals share a property, each holding a separate interest that passes through their estate, not automatically to co-owners.
Time Division:
A system used to categorize the value of a vacation interval—typically based on seasonality and demand. See also: Season and Red Week.
Timeshare:
A vacation ownership model where multiple people share usage rights to a unit, typically at a resort. Also referred to as Vacation Ownership, Holiday Ownership, or Interval Ownership.
Timeshare Cancellation:
The act of terminating a timeshare contract after the rescission period has expired. Requires mutual agreement or legal action to be released from future obligations.
Timeshare Divestment:
A term used when a timeshare has been legally and financially relinquished, ending the owner’s obligations. See also: Timeshare Cancellation.
Timeshare Fraud:
Deceptive practices targeting timeshare buyers or sellers—especially in the resale or exit space. These scams often involve up-front fees or false resale promises.
Timeshare Lease:
A Right-to-Use agreement where owners lease the property for a set period without owning deeded real estate. See also: Lease and RTU.
Timeshare Mortgage:
A financing method for purchasing a timeshare. Typically high-interest, with defaults leading to foreclosure or credit damage. See also: Mortgage.
Timeshare Resale:
The sale of a previously owned timeshare on the secondary market, often for far less than the original price—sometimes even for $1.
Timeshare Sales Contract:
A legal agreement outlining the purchase terms, owner rights, and obligations associated with a timeshare.
Title:
Legal documentation proving deeded ownership of a timeshare, required to be recorded with a local authority.
Title Insurance:
A policy that protects timeshare buyers from future title disputes, liens, or ownership conflicts.
Tour Package:
A promotional travel offer (e.g., hotel stay, airfare) designed to attract potential buyers to attend a timeshare sales presentation.
Trading Power:
The relative value of a timeshare week or points, based on season, resort quality, unit size, and demand. Determines the exchange value in vacation networks.
Transfer:
The process of legally changing ownership of a timeshare by sale, inheritance, or donation.
Trial Membership:
A temporary timeshare program offering prospective buyers limited-time access to test the product before committing to a full purchase.
Trustees:
Neutral third parties—often financial institutions—assigned to hold legal title to a timeshare property on behalf of the owners, safeguarding their interest if a developer defaults.
U —
Unit Size:
Refers to the size and layout of a timeshare unit. Common options include studio/efficiency units (like a standard hotel room) and 1–3 bedroom suites, which often feature separate living, dining, and kitchen areas. Larger units may increase trade value and guest comfort.
Up-Front Fees:
Fees charged before services are provided—typically for advertising, resale, rental, or cancellation. These can be thousands of dollars and are often associated with scams. Reputable brokers do not charge up-front fees, instead collecting payment after closing through escrow.
Upgrade:
The ability to trade your current reservation or points for a larger unit, better view, or premium season. Upgrades may require additional points, fees, or availability during booking.
Upgrade Fee:
A specific monetary charge applied when upgrading to a larger or more luxurious unit than originally owned. Fees vary based on destination, season, and unit type.
Use Type:
Describes the nature of your ownership or booking flexibility. Types include Fixed Week, Floating Week, Points-Based, and Biennial Ownership, each with its own rules on how and when you can vacation.
Use Year:
The 12-month timeframe in which a timeshare can be used, often beginning on the anniversary of the purchase or ownership start date. Knowing your use year helps avoid expired weeks or lost points.
V —
Vacation Club:
Also known as a Holiday Club or Travel Club, this is a membership-based program that offers access to multiple resorts, cruises, and travel discounts—sometimes including restaurants, golf, and attractions. Vacation clubs may look similar to timeshares but are often not protected by timeshare laws and may vary in terms of guarantees and ownership rights.
Vacation Exchange:
The process of trading a timeshare stay at your home resort for one at a different property within a global network (like RCI or Interval International). Exchange options depend on trade value, availability, and membership in the exchange company.
Vacation Ownership:
A broad term referring to any form of shared vacation property rights, including timeshares, fractional ownership, and points-based systems. It gives travelers consistent access to resort accommodations without full ownership responsibilities.
Value Per Guest (VPG):
A performance metric used by timeshare sales teams. It measures the average dollar amount earned per guest, calculated by dividing total sales volume by the number of qualified attendees at presentations.
W —
Week Fifty-Three (Week 53):
Occurs approximately once every seven years when a calendar year contains 53 weeks instead of the usual 52. This “bonus” week is often retained by the developer or offered as a special perk to high-tier owners or VIP members.
Week Number:
A number assigned to each calendar week, used to identify fixed-week ownership periods.
Warranty Deed:
A deed that guarantees a clear title to the buyer, used in many deeded timeshare transfers.
X, Y, Z —
Yield Management:
A pricing and inventory strategy used by resorts to optimize occupancy—affects booking availability.
Zero Balance:
Refers to an account status where all timeshare-related fees (e.g., maintenance, assessments, mortgage) have been paid in full. Often a requirement for resale, transfer, or cancellation.