TERMINOLOGY
TIMESHARE
Timeshare is a form of ownership of property in the form of APARTMENTS within the APARTHOTEL complex or the right to exclusive use of apartments on the basis of time division for a period multiple of a WEEK in each calendar year for not less than 3 years of duration or in perpetuity. A unique and attractive part of the program is the EXCHANGE of timeshares through an independent EXCHANGE COMPANY.
TIMESHARE OWNER
Timeshare owner is an individual or legal entity who purchased or otherwise received TIMESHARE. A distinction is made between the “Principal Owner” and “Co-Owners,” where the “Principal Owner” is the person listed first on membership documents (timeshare ownership CERTIFICATE, dead of act, etc.). No more than 4 people can own a timeshare at the same time. The “Main Owner” and the “Co-Owners” have absolutely equal rights. However, the certificate only shows the address of the “Principal Owner” and all members correspondence is sent to this address.
TIMESHARE APARTMENTS
Timeshare apartment in Western Europe is an apartment in a private multi-apartment residential or tourist complex. There are different TYPES OF APARTMENTS based on size and number of bedrooms. In tourism, the characteristics of apartments are MAXIMUM CAPACITY and COMFORT, which are usually indicated in parentheses through a fraction (Note: 1-Bed (4\2) - apartments with one bedroom and a maximum capacity of 4 people, and comfort of 2 people). Apartments differ from a hotel room by being more specias and equipped with the kitchen (minimum kitchen or full kitchen)
APARTMENT TYPES
“Studio” (Studio, abbreviated St. or T-0) is an open-plan one-room apartment, in which a recreation area and a dining area are combined in one room, and the kitchen is separated by a bar counter and only the bathroom and toilet are separate. “One-bedroom apartment” (1-Bedroom, abbreviated as 1-Bed or T-1) - apartments with one separate bedroom, living room, kitchen and separate dining area, bathroom with toilet, terrace or veranda. “Two-bedroom apartment” (2-Bedroom, abbreviated as 2-Bed or T-2) - the same as the previous one, but with two separate bedrooms, as well as two bathrooms and toilets. The previous two types of apartments are the most popular and common in APARTHOTELS. There are also “Three-bedroom apartments” (3-Bedroom, abbreviated as 3-Bed or T-3) and much less frequently “Four-bedroom apartments” (4-Bedroom, abbreviated as 4-Bed or T-4).
MAXIMUM CAPACITY
Maximum capacity is a characteristics of the APARTMENT, depending on the number of beds. (Note: One-bedroom apartments most often have a maximum capacity of 4 people: two beds in the bedroom or one king size bed for two people and a sofa in the living room that can be folded out in the evening, which can accommodate two more people)
COMFORT
The Comfort is apartment characteristics, depending on the layout of the APARTMENT, are usually less, but sometimes coincide with the maximum capacity in the apartment. If, in accordance with a specific layout (land plans) access to the bathroom for the holidaymakers staying in the bedroom is separate and does not interfere with those who are staying in the living room sleeping on the sofa then in this case the comfort will coincide with the MAXIMUM CAPACITY.
APARTHOTELS
Aparthotels are the tourist complexes with developed infrastructure (reception, bar, restaurant, swimming pool, gym, playgrounds, etc.) differ from hotels in that they consist of APARTMENTS instead of traditional hotel rooms.
TIMESHARE WEEK
Timeshare week is the minimum duration of stay of 7 nights in the APARTMENTS of the APARTHOTEL complex, which can be purchased for perpetual ownership or the one with the duration of more than three years under the TIMESHARE program. There is no limit to the number of weeks of timeshare a single buyer can purchase and own.
FIXED WEEKS
Fixed weeks are the most famous and widespread form of TIMESHARE ownership, when the TIMESHARE OWNER is assigned specific APARTMENTS in a specific APARTHOTEL complex for perpetual possession or with specific duration longer than 3 years in a specific calendar week of each year. Weeks 18 and 19 usually coincide with the May holidays, and weeks 1 and 2 are New Year's holiday weeks. Ideal for people who would like to have a guaranteed holiday in a specific location at the same time year after year. (Note: Owning the 52nd and 1st weeks in a club on the island of Tenerife, the owner guarantees himself a New Year's holiday in the sun)
FLOATING OWNERSHIP
With the Floating Ownership the buyer, purchasing a TIMESHARE, is determined only by the specific size and TYPE OF APARTMENT, the number of Holiday WEEKS purchased and the SEASON. Within the framework of this season, the TIMESHARE OWNER can order accommodation in the agreed size of apartments on different dates. (Note: One year you can go in June, and the next year in September or again in June.) You just need to inform the club in advance and book an apartment for specific dates according to the CHANGE OVER DAY you are assigned within your ownership. There are no surcharges for changing the dates of the planned trip, just as there are no restrictions within the season. Ideal for people whose vacations are always at different times or on a staggered schedule.
CHANGE OVER DAY
Each apartment has its own specific check-in day to avoid delays between the arrival and departure of tourists. The Change over day and is indicated in the membership documents of the owners of FIXED weeks, as well as in the catalog of the exchange company of each club.
SEASONS IN TIMESHARE
Different weeks and months throughout the year differ in the occupancy of apartments with holidaymakers. Traditionally there are defined three seasons: “High”, “Middle” (Middle or Mid) and “Low”. Low season - occupancy rate below 30%, High season - above 65%. Occupancy depends on weather and climatic conditions, national and international holidays and festivals, school holidays, etc. EXCHANGE COMPANIES have seasons named by color: “High” - in RCI and in Interval International - “Red”; “Medium” in RCI - “White”, in Interval International - “Yellow”, and “Low” in RCI is “Blue”, in Interval International is “Green”. Within the high season category there is also distinguished “Peak season” (Pick or Super High or Super Red). This is most often August, as well as Christmas and New Year holiday periods, carnivals, etc.
MULTI-DESTINATION RESORTS
Multi-destination resort is a group of timeshare resorts that usually have one DEVELOPER. Clubs and resorts can be located in the same or in different regions and even in different countries. There are multi-destination clubs that unite only three resorts, and at the same time there are ones with more than two hundred resorts. The type of ownership in a multi-destination clubs is always FLOATING. A club member has the right to choose, within the framework of his SEASON and the size and TYPE OF APARTMENT, not only different times for his holiday, but also a specific resort in a specific destination. (Note: One year you can take timeshare vacation in July on the Costa del Sol, and the next year on New Year's in Tenerife, and the third year - to England in May, etc.) Choosing a vacation destination does not require additional payments and is sometimes called "free of charge internal exchange." It is considered an advantage that money is saved on the exchange. Membership in the multi-destination clubs does not exclude the possibility of EXCHANGE through an independent EXCHANGE COMPANY. However, such an attractive membership is not suitable for those who would like to have a guaranteed place and time of holiday from year to year.
TIMESHARE OWNERSHIP CERTIFICATE
Timeshare ownership Certificate is a document confirming the rights of the timeshare OWNER, a certificate of ownership. The document describes the owner's property: the name of the club, the size of the apartments, the number and numbers of weeks, the date of registration of membership and issue of the certificate, its number, as well as the owner's details, including his address and co-owners. For POINTS timeshare certificate states how many points are in the owner's possession for the annual use. The reverse side of the certificate is an act of transfer of membership rights and is filled out only if the owner intends to transfer his rights (sell, give away, donate, etc.) to another person or people. Keep your membership certificate in a safe place.
MEMBERSHIP FEE
Membership fee (management fee, share of the resort utilities) is a mandatory fee, which goes towards maintaining order, taking care and management of the apartments, managing the resort and all infrastructure, repair work, depreciation, etc. Paid once a year according to the invoice issued before the beginning of the year. The membership fee may increase, but not higher than the inflation rate. The final decision on the amount of the annual membership fee is made based on voting at the annual general meeting of all club members. You can participate in voting in person, or by correspondence. The payment of dues on time by all members guarantees a high level of ownership for many years to come.
EXCHANGE COMPANY
Timeshare exchange company is an organization that exchanges timeshare weeks between club members. They provide owners with the opportunity to exchange their timeshare week for another. It’s possible to make exchanges for another time, place or both (exchange it different time and different destination) at the same time. The exchange company guarantees the same level of resorts affiliated into it’s exchange system and published in resorts directory on line and as a paper catalogue.
The two largest exchange companies are Resort Condominiums International (RCI) and Interval International (II). Almost all resorts belong to one or the other of these two organizations. However, there is an exchange company that allows exchange between owners of any timeshare - 7Across , formerly known as Dial-n-Exchange.
TIMESHARE POINTS
Timeshare points is a type of timeshare. The purchased property is valued in points (score) which the owner trades for each individual holiday booking. A very flexible system that allows you to choose and vary, as needed, different sizes of apartments for each trip, divide a holiday week into midweek short holiday (Monday-Tuesday- Wednesday-Thursday) or long weekend (Friday- Saturday-Sunday) weekend trips, allows to book a ten-day vacation, and much more.
TIMESHARE RESORT DEVELOPER
Timeshare Resort Developer (Founder) is an organization, a legal entity, or less often a private person, who is the original developer of the resort, the owner of the land and buildings that make up the recreation complex. The developer of a timeshare complex, before signing an agreement with the EXCHANGE COMPANY and affiliating his complex into their exchange system, is obliged to take a number of legal actions aimed at ensuring the subsequent legal protection of club members (TIMESHARE OWNERS); somehow register the CLUB'S CONSTITUTION, pass all constituent documents, including deeds to land and buildings to an independent TRUSTEE, etc. The Founder hires an independent MARKETING COMPANY to sell timeshares or sometimes creates his own, but always financially and legally independent from the club itself.
TIMESHARE MANAGEMENT COMPANY
Timeshare Management Company is a mercenary organization whose duties include carries out the daily management of the resort, maintenance and upkeep of the apartments and the entire infrastructure of the complex. Initially, the management company is selected and hired by the RESORT DEVELOPER. Subsequently, the CLUB COMMITTEE can extend the contract for managing the club or pass it to another management company, having secured a majority of votes of ordinary members of the club at the ANNUAL GENERAL MEETING. The management company: hires and fires resort employees, draws up and distributes the budget for the maintenance of the complex, makes reservations for accommodation in clubs with FLOATING OWNERSHIP or the POINTS system, sends out invoices for MEMBERSHIP FEES, and monitors their payment.
TIMESHARE TRUSTEE
Timeshare resort Trustee is (most often a Trust Company or a Notary) in most European countries, a mandatory independent legal structure designed to maintain the rule of law and consistency in the club, while protecting the interests of both the FOUNDER and the TIMESHARE OWNERS. The duties of the Trustee include: Encumbrance and trusteeship of all constituent documents of the resort; Creation and monitoring of compliance with the club's CONSTITUTION; Creation and maintenance of a register of club members (TIMESHARE OWNERS); Assignment and registering of property to them in the form of WEEKS and POINTS; Issuance of documents confirming timeshare ownership (membership CERTIFICATES); Transfer the ownership from one person to another during resale, donation, inheritance, etc.; Maintaining special notary accounts of the club (escrow), where the TIMESHARE buyer can transfer funds if he does not trust to pay either the MARKETING COMPANY or the FOUNDER.
TIMESHARE SALES & MARKETING COMPANY
Timeshare Sales & Marketing Company is a legal entity authorized by the FOUNDER to sell TIMESHARES belonging to him and to carry out any kind of marketing activities for this purpose. Most often, marketing companies conduct one-to-one or group TIMESHARE PRESENTATIONS to sell timeshares, during which they explain the features, principles of operation and advantages of a timeshare for several hours and offer to make a purchase using special presentation offers. The responsibility of the marketing company to the timeshare buyer includes reliable information about the subject and conditions of purchase, the timely transfer of the buyer’s funds to the account of the TRUSTEE or FOUNDER minus its commissions, as well as providing the buyer with original membership documents confirming the fact of purchase in accordance with current legislation (in including the issuance of a membership certificate), as well as exchange company membership. After issuing all of the above documents, the marketing company’s obligations to the buyer are considered fulfilled. There are marketing companies that work under an agreement with the FOUNDER on the territory of the resort, and those that work outside, including in other countries.
TIMESHARE PRESENTATION
Timeshare Presentation is an event at which a potential client is told about the company’s timeshare, about the timeshare club system, its advantages, capabilities and exchange system.
At the presentation, it is proposed to purchase a timeshare, and % discounts on its purchase are also provided.
The presentation can take place both on the territory of the resort itself and outside it, and even in another country.
The company which conducts the presentation is called the TIMESHARE SALES & MARKETING COMPANY.
At the presentations, only the primary sale of timeshares is carried out from the FOUNDER through an intermediary - a MARKETING COMPANY. At the presentations of some resorts, timeshares previously sold by the same resort may be resold, but they never resell other people's timeshares, even if they are very valuable, since this is not profitable enough and since it is impossible to keep a competent staff of agents fully aware of information about several timeshares at once.
TIMESHARE RESALES AGENCIES
Timeshare Resale Agency is an independent legal entity whose goal is to make profit from purchase and sale transactions between ordinary members of clubs (TIMESHARE OWNERS). In essence, the activities are identical to real estate agencies. With one difference, it does not organize viewings of apartments for the buyer. This is due to the fact that usually the potential buyer has already been and took a holiday at a particular resort or owns a WEEK or POINTS there. Resale agencies do not make presentations and do not own primary sales technologies, but work exclusively with buyers who are well aware of the timeshare system. Having accepted an application from a potential seller and agreed with him on the terms of sale, they add this offer to their list and strive to attract potential buyers through the media (newspapers, magazines, Internet, television).
The resale agency can provide services for transfer of the ownership documents (CERTIFICATES) in the appropriate their authorities or simply represent the seller to the buyer.
