10 Questions to Ask When Buying a PRC

Not all Private Residence Clubs (PRCs) are created equal. PRCs differ from one another in several ways, including desirability of location, level of amenities and services, size and quality of residences, and reservation policies. These 10 questions can help you determine if a PRC is right for you.

1. What is the current status of the PRC? How many members, residences and phases does the project consist of now and will it at its completion?
   PRCs are commonly built in phases and can take several years to complete. As additional residences are built and new members join, the club's overall structure may change. A new PRC has no track record, and you cannot be certain that it will appreciate in value over the years. Therefore as a founding member at a new PRC, you'll pay less, but risk more. On the other hand, if you join a PRC in its final stages, memberships will cost more, but your risk will be minimal. In order to safeguard your investment, it is important to know what the plans for a PRC are and where you fall into the bigger picture.
   
   
2. Who is the club's developer?
   The developer decides how the club is designed, managed and grows. You should inquire whether a developer is reputable and has relevant experience within the PRC industry.
   
   
3. <Will the club match my typical vacation patterns?
   PRC reservation systems are flexible enough to accommodate most families. However, no one club can accommodate everyone, so it is important to determine if the club you're interested in will fit your family's vacation patterns. For example, the strict schedule of school-aged children will limit your family's travel times. In this case, you may want to find a PRC that has a flexible reservation policy, long vacationing seasons, or a low residence-to-member ratio.
   
   
4. What is the cost of membership and what does it include?
   Generally, PRCs have a one-time membership fee, plus annual dues. How many weeks of vacation does a membership allow? What do the yearly dues cover? Bottom line: you want to know what you are getting for your money.
   
   
5. What services and amenities are included in club ownership?
   Many PRCs offer services and amenities not available with even the most expensive vacation home. It is important to ask which services and amenities are free of charge, and which carry an additional fee.
   
   
6. Is the club's reservation policy fair and easy to use?
   A major reason to purchase a club membership is to simplify your vacation planning. The club's reservation policy should be easy to use and should enhance your vacation planning, not complicate it.
   
   
7. Can other family members and guests use my membership?
   Many PRC memberships provide you with a minimum of five weeks of planned vacation each year. Since most of us don't have the luxury of taking five weeks off each year, you'll want to know if you can send other family members and/or guests to your club under your membership. Also, inquire if the PRC offers corporate memberships.
   
   
8. Can my PRC membership be resold?
   Depending on the club's set-up, you may or may not be able to re-sell your membership in the real estate market. If you receive a deeded interest from your club, you should be able to list your membership for sale with a licensed real estate agent through the Multiple Listing Service, subject to Club Charter and Bylaws.
   
   
9. Can I exchange my club vacation time for time at other clubs?
   There are a handful of PRC exchange companies within the industry. These companies facilitate exchange and travel opportunities through a portfolio of affiliated PRC properties and travel companies. Some club memberships include privileges with an exchange company. Other exchange companies charge a fee (see www.residenceclub.com/ec.html).
   
   
10. Can I contact some current members to evaluate their experience at the PRC?
    The sales representative at a reputable club should be eager to provide you with contact information for members willing to speak candidly with potential buyers. This will give you the opportunity to get an inside, uncensored perspective on what it is like to be a member at the respective PRC