Timeshare 101

Banked Week: When dealing with an exchange company, the owner can opt to reserve or deposit unused weeks for use at a later time. The owner typically has two years to use a week in the exchange company’s network of resorts after he/she officially “banks” it.

Biannual Property: The owner uses the property two weeks each year.

Biennial Property: The owner uses the property one week every two years.

Exchange Company: A company that gives you increased flexibility by allowing you to exchange your week at your home resort for a week at a similar resort elsewhere. Examples of exchange companies are Interval International (II) and Resort Condominiums International (RCI). These two are affiliated with more than 5,000 resorts around the world. You can join your home-resort exchange or use an independent exchange company.

Five-Star/Gold Crown Resort: These terms are the highest designations bestowed on properties. Five-Star is a term used by Interval International, while Gold Crown is used by Resort Condominiums International.

Fixed Weeks: You have the same week(s) at the same property each year. Just as the name indicates, the week is fixed and cannot be moved.

Flex Weeks: Less rigid than a Fixed Week, you must reserve a week during a particular season.

Floating Weeks: You have the same number of weeks each year, but you can use them at different times during the year. There are black-out dates for events, so you must make a reservation to ensure availability.

Maintenance Fees: Usually administered two, six or 12 times a year, these fees cover the general maintenance and upkeep of the property. They typically also include the taxes, utilities and insurance.

Points: These are units of measurement that establish the value of seasons, sizes of suites, and resort locations. Many resort companies use point systems. Multi-destination point programs offer owners a variety of resorts from which to choose, as well as flexible use options.

Right to Use (RTU): In locations, primarily outside the United States, where deeded ownership of vacation properties is not permitted by law, the owner will be given a contract similar to a lease to define a claim on the property. These agreements typically run for periods from 20 to 99 years.

Timeshare: Joint ownership of a vacation home giving multiple owners the use of the property for a specific time period while sharing the expense of the property. When you purchase a year-round vacation home, you have to furnish, maintain, paint, repair and keep it clean, plus pay for electricity, water, sewage, garbage removal, property taxes and insurance. With timeshare, you pay a one-time purchase price and an annual maintenance and tax fee. If you choose not to visit the same resort each year, you can go anywhere in the world through your exchange company or rent your timeshare out. Timeshares come equipped with luxurious features and furnishings, and are sold as one, two or three bedroom units.