Timeshare 101
A Guide to Timeshare Terms
Cut through the confusing terminology of the timeshare industry’s jargon by familiarizing yourself with some of the most frequently used words and phrases.
Banked Week: Through an exchange company, owners can choose to reserve or deposit unused weeks and use them at a later time. Owners generally have two years to use a week via the exchange company’s network of resorts after they officially “bank” it.
Biannual Property: One where the owner uses the property two weeks each year.
Biennial Property: One where the owner uses the property one week every two years.
Exchange Company: A company that increases the flexibility of timeshare ownership by allowing owners to exchange a week or weeks at their home resort for time at a similar resort elsewhere. Examples of exchange companies are Interval International (II) and Resort Condominiums International (RCI), which are affiliated with more than 5,000 resorts around the world. You can join either your home-resort exchange or use an independent exchange company.
Five-Star/Gold Crown Resort: 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: This indicates the same week(s) at the same property each year. The week is fixed and cannot be moved.
Flex Weeks: More flexible than Fixed Weeks, but you must reserve your weeks during a particular season.
Floating Weeks: These give you the same number of weeks each year, but you can use them at different times during the year. You must make a reservation to ensure availability, since black-out dates sometimes apply.
Maintenance Fees: These fees cover the general maintenance and upkeep of the property, and are usually administered two, six or 12 times a year. They typically also include the taxes, utilities and insurance.
Points: Units of measurement that establish the value of seasons, sizes of suites, and resort locations, many resort companies use points systems. Multi-destination points programs allow owners to choose from a variety of resorts, as well as make flexible-use options.
Right to Use (RTU): In some locations, usually outside the United States, where deeded ownership of vacation properties is not permitted by law, the owner receives 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 purchasing a year-round vacation home, you are responsible for furnishing, maintaining, painting, repairing and keeping 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.
