COMPLETE SECONDARY MARKET SOLUTIONS THE ABC’s of …

COMPLETE SECONDARY MARKET SOLUTIONS

THE ABC's of TIMESHARE

"It is our mission to serve our clients with the highest quality of professionalism, while solving their longterm issues. We provide our clients with full transparency throughout the entire process, and remain accountable at every step. It is important to us to have this rapport with both the clients whom we service and the resorts we work closely with."

- Cory Stegemann, Founder & CEO

CONTENTS

Pg. 03 | Ownership Options Pg. 04 | History of Timeshare Pg. 05 | Glossary: Part One Pg. 06 | Glossary: Part Two Pg. 07 | Timeshare Industry Today Pg. 08 | What You Should Know Pg. 09 | Company Overview / Affiliates & Accreditations Pg. 10 | References Pg. 11 | Contact Us

Ownership Options

Know your options.

TRADE-IN: For those clients who own an undesirable ownership for their needs and want to trade-in for a bettersuited product.

UPGRADE: When a client owns at a suitable resort, however owns an inferior week or number of points.

ADD-ON: When a client owns at a desirable resort and is happy with what they own, so much so, that they are looking for more.

OPT-OUT: When a client chooses to no longer be a vacation owner. You have a timeshare and you don't use it or have no desire to maintain it.

HISTORY OF TIMESHARE

After it's start in Europe back in the '60's, "timeshare fever" really caught on in the United States thanks to companies like Hilton and the Hyatt, starting in 1969.

In particular, destinations like Hawaii and Florida became the American homes of timeshare, come the 1970's with numerous resorts being developed specifically for the selling of timeshare and previously built resorts adding it to their inventory.

The birth of the timeshare changed the way people could travel, enjoy themselves and revolutionized the travel industry for frequent travellers and families.

TIMESHARE TIMELINE

The birth of timeshare changed the way that people could travel, and revolutionized the travel industry.

? 1963, the first vacation ownership resort was built in Baar, Canton of Zug, Switzerland

? 1964-1968, Le Devoluy, France - Paul Soumier turned SuperDevoluy Ski Resort, located in the French Alps, into a timeshare resort property with great success

? 1965, Maui, Hawaii, USA - Brought to life by a partnership of six men, including the grandfather of timeshare, Conrad Hilton, the Hilton Hale Kaanapali was the first timeshare resort on American soil

? 1973, Lake Tahoe, California, USA - Marks the birth of deeded timeshare ownership which was sold out of Brockway Springs Resort. Cart Berry, Paul Gray, Greg Bright, Doug Murdock and Dave Irmer are the five men credited with creating the term "timeshare."

Glossary: Part One

TIMESHARE TERMS

Banking / Deposit: Depositing a certain amount of timeshare weeks into an exchange system or inventory pool.

Biennial: Usage of a timeshare week every other year. Owners can be referred to as either odd or even year owners.

Certificate: Documentation confirming specific details of your ownership week and / or points.

Closing Costs: Costs incurred during the process of a sale's closing.

Constitution: A document that explains the guidelines of running the resort.

Cooling Off Period / Recession: Refers to the number of days (typically 5-10), within which a buyer can cancel their purchase without incurring penalties.

Deed: Legal documentation providing ownership or property rights that is recorded in a government office.

Developer: Owner of the resort. They are responsible for constructing the accommodations onsite and selling the product.

End-User Finance: A loan granted to a buyer to purchase a timeshare property.

Exchange Company: Third-party organizations that facilitate the exchange of banked timeshare weeks for comparable accommodations or travel-related services.

Exchange: The ability to trade and exchange deposited weeks between owners.

Home Owners Association (HOA): The group of owners, required by state laws, that administer the rules and regulations of a resort.

Levy: Admin fees incurred by individual members. They can also include charges for use of a particular week.

Listing Agreement: An agreement made between an owner and a company claiming to sell their timeshare. This usually involves an upfront cost with no guarantee.

Maintenance Fee: Annual charge by the management company or HOA. These fees cover various costs such as taxes, utilities, insurance and resort upgrades.

Title / Abstract of Title: Proof of an individual's ownership or a property that is usually recorded within a government office or in the county clerk's records office.

Premiums: Incentives provided to potential customers who attend a sales presentation.

Red Week: Refers to the peak season at a resort during which timeshare properties are at their most desirable.

Continued >

Glossary: Part Two

TIMESHARE TERMS

Resale: Vacation property up for sale, or sold on the secondary market to a third party by the owner.

Special Assessment: Extra fee issued to owners by the resort (not including regular annual fees) to cover special building or maintenance costs.

TIMESHARE OWNERSHIP

Deed & Title: You purchased a deeded interest (like real estate), which is recorded with the proper authorities and you receive a title in perpetuity.

Fixed Week / Fixed Unit: You own rights to a specific week, or rights to a specific unit size. The advantage to fixed week / fixed unit ownership is the assurance that your specific timeshare unit will be waiting for you faithfully at the same time each year.

Floating / Flex Time: You as an owner, own a specific amount of time within a specific season during the year. This works on a first-come-first-served basis, to the most desirable weeks are taken up quickly. You must first reserve

Strawman: A company uses a fake identity and convinces the individual to pay upfront to get out of timeshare. The result is a loss of money and you still own your timeshare.

Transfer: A process where property is delivered and relinquished to another individual.

your time at your resort before the exchange companies will accept it for deposit in the "exchange bank."

Fractional Ownership: Is when partial ownership or arrangements for basic fractional usually divide the ownership into fourths, eighths or 13th's, with each owner having an equal number of days a year to use the unit.

Leasehold: Similar to deed and title except leasehold is not in perpetuity and has an expiration date. This type of ownership is becoming less common as resort companies purchase full ownership rights to the land that the resorts are built on.

Up-Front Fees: Costs which are required at the start of the process of listing a timeshare.

Right-to-Use (RTU): You purchase the right to use a particular unit every year, without any rights of ownership to the resort itself. This is the prevailing type of timeshare ownership in many countries outside of the USA, where it is illegal to sell timeshare as a deeded entity.

Points / Club Membership: Each unit / week of time is appointed a specific number of points based on its location, size, desirability, time of year, etc. Points are used like dollars and can be spread out throughout the year depending on the amount of points you purchased.

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