Timeshare Glossary of Terms.

Any amount of unused weeks or points that have been banked to be available for use in the current calendar year. Accrued points typically expire if not used within a set period — another detail buried in the fine print.

The annual interest rate you pay on your timeshare loan. Timeshare loans commonly carry APRs of 14–20% — far higher than mortgage rates or car loan rates. Over the life of a 10-year loan, you may pay two to three times the original purchase price.

Fees that are separate from your maintenance fees, used for major repairs and refurbishment of the resort that are split amongst the owners. These are in addition to your regular maintenance fees and can arrive without warning.

A lien placed upon the timeshare owner's interest in the property for failure to pay an assessment. This is potentially the start of the foreclosure proceeding. Once a lien is filed, it can affect your credit and your ability to resolve the timeshare through normal channels.

The ability of the timeshare developer to transfer the mortgage debt owed on a timeshare to another company to collect. The owner does not have to be late on their payments for this to occur. If your account is assigned to a different servicer, your payment address and account details may change — and missing a payment during the transition can trigger fees or derogatory reporting.

The depositing of a week or points within a resort in exchange for time or points at another resort, or to carry over to the next calendar year. Banked points often have strict expiration rules and may lose value when exchanged for stays at other properties.

Additional points given to a timeshare purchaser by the resort as an incentive for purchasing more weeks or points. These generally must be used within a specific time period from the date of purchase — a detail that catches many owners off guard.

The combining of two or more timeshare mortgages into one loan. While this may lower your monthly payment, it often extends your repayment period significantly — increasing total interest paid. Be very cautious of consolidation offers made by exit companies or timeshare salespeople, as they may extend your obligation rather than reduce it.

The Homeowners Association is generally responsible for mortgage and maintenance decisions at the resort. As a timeshare owner, you are technically a member of the HOA — which means you can be subject to assessments and decisions voted on by the association, with little to no input from individual owners.

A litigation proceeding initiated by the resort to recover the property and the outstanding debt when an owner fails to pay the mortgage, maintenance fees, or assessments. A timeshare foreclosure is treated by credit bureaus as equivalent to a home mortgage foreclosure — one of the most severe derogatory marks possible, remaining on your credit report for up to seven years.

Fees assessed to the owners for the upkeep of the property. These fees cover taxes, insurance, and maintenance such as landscaping, pool maintenance, and so on. The average maintenance fee exceeds $1,100 per year and typically increases 3–5% annually — regardless of whether you use the timeshare or not. You cannot opt out of maintenance fees while you remain an owner.

A foreclosure proceeding not initiated in court, used to recover interest in a timeshare for the owner's failure to pay the mortgage, maintenance fees, or assessment. This is often followed by a separate lawsuit to recover the outstanding debt. Non-judicial foreclosure moves faster than judicial foreclosure and gives you less time to respond or seek legal help.

The portion of the weeks or points an owner has in a specific resort property. Your ownership interest determines how many points you receive annually, your priority for home-week reservations, and your share of HOA assessments. Understanding exactly what your ownership interest entitles you to is essential before pursuing any exit strategy.

The time period in the contract in which the owner can rescind the contract and get a full refund. This period is generally set forth by state law and is sometimes referred to as a "cooling off period." In Nevada, the rescission period is 5 calendar days from the date of signing. This is your most powerful legal right as a timeshare buyer — and it expires quickly.

The right to cancel a contract and receive a refund of any amount paid for the timeshare. Rescission is the most straightforward exit — but it must occur within the legal rescission period. After that window closes, cancellation requires legal grounds and typically the representation of a licensed attorney.

A timeshare that is resold by either an owner or third-party entity after it was originally purchased from a resort. Resale timeshares are often listed online for $1 — a reflection of their true market value. Developers rarely accept resale transfers without approval, and many impose transfer restrictions that significantly limit what the buyer can actually use.

A fee issued by a resort for repairs or refurbishment of the resort. This generally follows major damage to the resort as the result of water damage or a natural disaster. Special assessments can run into thousands of dollars per owner — and failure to pay them can trigger an assessment lien and foreclosure proceedings.

A fee which is charged upfront before starting the process of listing a timeshare for resale. Legitimate timeshare resale brokers do not charge upfront fees before delivering results. Any company demanding an upfront fee before you see any action on your case is exhibiting a well-documented scam pattern. The FTC has warned consumers about this practice repeatedly.

A schedule of bundled rates charged to an investor. Instead of charging a separate fee for each service extended to the client, a brokerage or other type of financial service provides the investor with a blanket charge for all services included in the program. In the timeshare context, wrap fees are sometimes used by exit companies or timeshare resale brokers — verify exactly what services are covered before agreeing to any bundled fee structure.