Fractional Property Glossary
Some of the terms casually bandied around on the websites of Destination Clubs, Private Residence Clubs and Fractional Property providers can be confusing to the uninitiated. Below we look at a number of the more popular terms in order to unravel the mysteries...
Annual Dues- In short, the yearly cost to members which is charged in addition to their initial fee. These dues can vary considerably depending on the club and the size of your fraction. Exactly what the charge covers does vary but broadly they cover staff salaries, maintenance, concierge and insurance as well as any added value extras such as golf-club membership.
Guest Usage- Many fractionals offer flexibility with regard to who can use the property. Named friends and family members can often stay unaccompanied on a main membership.
Equity / Non-equity- whether or not your fractional share actually provides you with a deeded slice of the property you are buying into. Those offering non-equity may still financially reward you through appreciation of your initial membership deposit.
Advanced Reservations- How far in advance can you make reservations. Dependent on how you like to plan your visits you may want to be able to book as far as two years in advance so check the terms and conditions into how far ahead one can book.
Exchange- With a company that has a wide-ranging portfolio you can often exchange the time at your key resort with other properties within their portfolio.
Member Cap- the projected amount of members that the offering intends to sign up. Important for judging availability as one does not want to sign up to an oversubscribed development as this means more competition between members for the resort during peak seasons.
Refundable Deposit- the percentage of your deposit that will be returned if you decide to leave the scheme. Also check minimum membership periods and penalties for leaving before this time is up.