HOME

Timeshare Consumers Association

 

Abogado Spanish for lawyer.

Accrued Time Exchange Company term for weeks accumulated from earlier years that are available for use in the current year.

Affiliated Exchange Company term to denote those resorts with whom they have exchange agreements.

Amber week See season.

Appartado (de Correos) Spanish for "Post Office Box Number"

Banking. Depositing a week of timeshare into an exchange company "bank". See also "Block Banking". Also called Space Banking.

Be-back Salesmen term for prospective purchasers who avoid buying and say that they will ‘be back’. Salesmen generally refer to them as ‘No be-backs’ and other, unprintable, names

Bi-ennial Use of a fixed week every other year (‘EOY’). Owners are referred to ‘Odd’ or ‘Even’ year owners

Blagger (trade slang). Liar. Often refers to a skilled salesman

Block (or Bulk) Banking. The depositing, usually by the resort management, of a large number of weeks into the exchange company "bank" at the earliest time possible. This is to enable owners to get the maximum exchange bargaining power.

Blue week see Season

Bonus time or Bonus week Additional week of use – usually only for one or two years - given to an owner as a bonus for purchasing etc. or if additional weeks are temporarily available when a small additional charge may be made.

Buy/sell.A fraud in which a timeshare purchaser is falsely promised  that an existing timeshare will be sold to defray the cost of the new purchase.

Calendar Each week in the year is given a "week number" and a calendar is provided to owners giving the actual date, each year, of their numbered week. Not all timeshare resorts operate to the same calendar.

Club/Trust System The most generally used system of timeshare ‘ownership’ in the UK. Owners belong to a Club and their accommodation unit (and sometimes the leisure facilities) are held by Trustees who licence a ‘Right-to-Use’ to ‘Owners’.

Clumper (trade slang).   "Heavy" or enforcer - usually with physical force - of sales territory and rules. See "Security"

Code of Conduct Standards of trading between trader and consumer drawn up by a trade or consumer body to increase consumer security and confidence in the product or service.

Cold Line   (trade slang)  The sales team  for making sales to consumers from outside the resort "cold".   See also "warm line".

Constitution The collection of inter-related legal documents establishing the relationship between timeshare owner, developer, trustee and management company. Effectively the rules by which the resort is run.

Cooling Off Period. The time given to a purchaser following signing of a purchase agreement, during which they may cancel without penalty. In the UK the cooling off period is 14 days, elsewhere in Europe  it is 10 days – imposed by legislation.

Deeded Outright ownership of a week by a ‘Deed of Title‘, often registered at a central Land Registry. The escritura system in Spain is a deeded system, but deeded timeshare ownership is contrary to UK law – hence the Club/Trust system.

Destination Club  Similar concept to a holiday club (qv) in promising access to timeshare accomodation but the club lacks certainty of rights of access to accomodation.

Developer The company owning the freehold of the resort; who construct the accommodation and leisure facilities. They make their profit from the initial sale to ‘owners’

Developers Price The full developers retail price. Often estimated by resale organisations to demonstrate the saving in buying from them.

End-user Finance. Provision of a loan to enable an owner to purchase a timeshare. Some finance agreements are personal loans (without security) whilst others are loans secured by the timeshare week or, occasionally, by a mortgage on the principle residence.

Escritura. The Spanish term for the deeding and registering of a ‘Deed of Title’. Similar to registration of the Land Registry in England and Wales

Escrow account. An account for the secure holding of money and assets (ownership certificate etc.) by a third party (usually an approved solicitor or accountant) until the full terms of a purchase agreement are satisfied. Then both parties agree to the release of the buyers money to the seller and the sellers certificate to the buyer.

Exchange Company. A company that arranges for owners to exchange between resorts. Most charge a membership fee and all charge an exchange fee.

Exit Program. Usually, a reduced cost package offered to a buyer who is on the point of "walking away" - intended to rescue something for the salesman after a failed presentation.

Factoring Fee (‘Factorial’) Scottish term for the Management Company profit mark-up included in the Management Agreement.

Five Star Top rated resort in the Interval International system

Fixed Time ‘Ownership’ of a specific week in a specific unit of accommodation. The week will always fall at the same time of the year.

Floating Time ‘Ownership’ of an unspecified week, in an unspecified unit of accommodation (and, sometimes, at an unspecified resort). To make use of a floating time week the owner must either book the exact dates that he wants (in competition with the other owners) or await a week to be allocated to him each year.

Fly-Buy. A holiday package where the resort pays the holiday costs of a prospective purchaser in return for that prospect attending a tour/sales presentation.

Fractional Ownership. Half way house between timeshare and full ownership - usually with between 6 and 12 owners deciding amongst themselve how the weeks are shared between them.  See here

Gold Crown The top resort rating in RCI.

Group Ownership Another term for Timeshare

Guest Certificate certificate issued by the exchange company authorising a nominated guest to use an exchange instead of the owners

Hacienda Spanish Tax Office.

H O A   Home Owners Association. The US equivalent of an Owners Club.

Holiday Certificate see Ownership Certificate.

Holiday Club A club which promises a number of weeks holiday, usually in timeshare accomodation.  These Clubs are generally  not covered by the current timeshares laws and cannot provide any secure certainty of availability or costs savings

Holiday Licence see Ownership Certificate.

Holiday Ownership Another term for Timeshare.

Hospitality Award. The lowest ranking award by RCI to a resort. The award reflects a good standard of reception and staff attitude towards owners/visitors.

Interval International – ("II" or "Interval") The second largest exchange organisation in the world

Internal Personal Contacts - IPC Sales staff employed to sell to existing owners. see also OPC.

IVA Abbreviation for Spanish Value Added Tax.

Legal team (Trade term) Small group of experienced sales people used to  cajole,  threaten and harrass purchasers into continuing with their purchase

Leisure Charge. A charge, in addition to the Management Fee, for use of leisure facilities. Often charged where leisure facilities are shared with other users – hotel guests, country club members etc.

Levy:

• In a points club, the annual charge to members to pay for administration of the club – in addition to any management charge or supplementary management charge made for actual use of a week.
• once-only charge made to owners by an Owners Club or Management Company to pay for major or unexpected costs.

Like for Like  The practice of most exchange companies to offer an exchnage of a similar quality and popularity to that being put into the exchnage bank.

Liner. Industry name for an ordinary salesperson.

Linked Agreement A method of circumventing the law banning the taking of deposits. One agreement (the Timshare Purchase Agreement in which NO deposit is shown) is linked with another (which can be a holiday voucher; extra holiday scheme etc.) which is, in reality, the deposit. The two agreements are made to appear NOT be linked when, in reality, they are.

Lock off Description of an accommodation unit which can be divided into two independent units, each with their own access. More common in the US than Europe.

Maintenance Fees see Management Fees

Management Company. The company contracted, usually by the Owners Club, to carry out all the day-to-day management of the resort. Very often owned or controlled by the developer

Management Fees. The fees, usually paid annually, by each owner or points club member to cover the costs of running the resort on a day-to-day basis and often including a contribution to a sinking fund.

Marketing Company. A separate company from the developer responsible for marketing. Sometimes a developer will manage the on-site marketing and employ a separate Marketing Company to manage off-site marketing

Multi-ownership. Another term for timeshare

Occupancy Size The number of individuals that can use a unit. Often shown as two figures - the second being the number that have total privacy (ie. private access to the bathroom) the first number being the total capacity allowing for additional beds created in public rooms etc.

OPC (Off Premises Contact). Salesmen whose task it is to get qualified prospects to attend a sales presentation (on-site or off-site) using "collect a gift" or "scratch card win" techniques etc. A street "tout"

OTE (common usage) Organisation for Timeshare in Europe. Previous name for Resort Development Organisation "RDO", a trade body.

Owners Club. The Club to which all owners at a resort (or points club)  belong. Sometimes the Club is constituted as a Company, but generally as a Members Club. Not all resorts have an owners club.

Ownership Certificate The certificate confirming either the right to use or the title to the property. Sometimes referred to as a Holiday Certificate or Timeshare Certificate.

Patrimonio Tax Spanish wealth tax.

Perpetuity   For ever. The law in some countries (England and Wales for example) does not allow licenced property rights for more than 80 years.

Plus valia tax Spanish capital gains tax.

Points Clubs A timeshare system where ‘owners’ hold points which entitle them to use a period (varying from a few days to a few weeks) every year from  a choice of resorts.

Private Vacation Club.  Similar to fractional ownership (qv)

Property Bonds A system, similar to Points clubs, for owning shares or bonds in a company owning properties.

Qualified prospect. Consumers who fit the profile that the developer and/or marketer considers are most likely to buy timeshare. Often "married and aged between 25 and 45".

Recourse Agreement an agreement between a Finance Company and a Developer where the Developer pays off any outstanding debt if a purchaser financed by the Finance Company defaults on a Finance Agreement.

Red week see Season

Repossession The removal of rights to use by a Club (or Management Company) for breach of the Constitution (usually non-payment of Management Fees) and the sale of those rights to recover any debt. Deeded property cannot normally be repossessed.

Resale Brokers/Agents or Resellers. Businesses who either:-

• buy timeshare weeks from existing owners and sell them to new owners (brokers)
• act as agents to put an owner and a buyer in contact to enable a sale to be made. They will charge a commision on the sale.

Resort of International Distinction (‘RID’) The middle of three ratings of resorts in RCI. Gold Crown is the top rating.

Resort Condominiums International – (‘RCI’) The largest exchange organisation in the world. American based with substantial offices in major parts of the world - including England.

Resort Development Organisation "RDO" - a trade body. Previously known as "OTE"

Right to Use. The legal term for the licence granted by trustees to an ‘owner’ of a timeshare.

Rohypnol The "Date Rape" drug occasionally used by salesmen to secure a sale.

Sales Inspection Visit (‘SIV’) Developer term for prospective purchasers to stay at a resort for a few days, for a low cost, on condition they attend a sales presentation.

Sales Person Incentive for Sale. ('SPIFS') An industry term for a bonus, usually given in addition to a general commission, paid to a salesman.

Season. Exchange Company division of the weeks in a year into popular (Red), shoulder (White for RCI or Amber for II) and off peak (Blue for RCI or Green for II) for the calculation of trading power in exchanges. Each resort may have different seasons depending on the geographic position etc.

Security Trade euphemsim for clumpers (q.v.)

Sinking Fund A portion of the Management Fee specifically dedicated to ensuring that the main structure, furniture and fittings of accommodation units (and sometimes leisure facilities) are kept in an ‘as new’ condition for the full period of ownership.

Slapping (trade slang) Beaten up by a clumper (q.v.)

Space banking Depositing a week of owned timeshare with an exchange company.

SPIFF (Trade term) "Special Incentive bonus For Future sales"  An occasional commission payment to incentivise sales people.

TATOC(Common usage) The Association of Timeshare Owners Committees, an affiliate of the trade body RDO (q.v.). Now abbreviated to "Timeshare Association"

Timeshare A right, shared with others, to occupy a unit of accommodation for a period of time (usually a week) on a regular basis for a number of years. Sometimes referred to as ‘Holiday Ownership’, ‘Multi Ownership’ or ‘Group Ownership’ . Timesharing can be in a single building, an apartment block or a boat. Further information

Timeshare Certificate see Ownership Certificate

Timeshare Directive   A European Parliament order to all nation states within the EU to implement timeshare laws

Timeshare Interval  Period of use – usually one week

Tour (trade phrase)   Sales presentation.

Trading power. The exchange trading value of a timeshare week used by Exchange Companies to decide what week an owner will be offered in exchange for his own week. Influenced by popularity of resort area, quality of resort, popularity of week and size of accommodation unit.

Trustees. A bank, trust company or a group of individuals who hold timeshare accommodation (and sometimes leisure facilities) ‘in trust’ on behalf of the owners and grant owners a ‘right –to-use’ through a licence (‘Ownership Certificate’). Trustees provide security for owners in the event that a developer fails financially. Some trustees may have added responsibilities such as ensuring the continuity of the Owners Club.

Two-for-One The offer by an exchange company to provide two weeks use in exchange for one week of ownership - usually only available to owners with highly desireable weeks for exchange.

Unqualified Prospect  - ('UP') Industry term for a potential buyer.

Warm Line  (trade slang) The sales team for making sales to owners and visitors staying on the resort.  See also "cold line"

Week 53 Almost all Calendars contain only 52 weeks of use in a year - but roughly every seven years there is an extra week,  week 53, which is generally reserved for the use of  the Developer/Founder Member.

Week Number see Calendar

White week see Season

A number of words and phrases in use in other parts of the world – notably America – and not in general use in Europe (because of differences in law or practice) can be found at Timeshare Users Group

February 2010