[ 2007 ] What is a UDI?

[Sportsden]

I'm new and cannot yet learn what UDI or UDI Points are, their pros/cons, etc. Can you enlighten me?

 

["Roger"]

[Oooops. Now we oversensitized you to double posting. This is a new topic and would be appropriate for a separate thread.]

In essence (trying to keep this simple), instead of owning a specific unit for a specific week at a resort (even floating weeks are deeded this way), you own specific amount of "interest" (the "I" in UDI) in a resort or a resort network.

You can use that "interest" however you want. If, for example, you own 18,000 UDI points, you can use all of your "interest" (18,000 points worth) to obtain a two bedroom unit during prime season, or, save those points and combine it with others to get a three bedroom the next season, or, split it to obtain two units during off season, etc.

The bottom line is that you own part of the resort, but what part is left unspecified.

 

[T_R_Oglodyte]

To expand on Roger's post a bit:

Let's say that you converted your house to a timeshare. To do that, you could create break the ownership of the house into 52 separate and distinct deeded ownerships, with each deed associated with a specific week of the year. Now you have created a divided interest. Each individual deed owner has a slice of ownership that is independent of the other ownerships.

Alternately, you could sell fractions of ownership where there is only one deed, but each person has a fractional interest in the deed. This is a bit similar to getting together with two buddies to buy a house together, and you decide that each of you will have a one-third interest. Now you have an undivided interest.

Now let's wrap points into this. There are 52 weeks in a year. For simplicity, let's say that each week of the year is equally desirable. So you set up a bank of 52,000 points, and assign a value of 1000 points for each week. You can then sell fractional interest using points to denominate the ownership interest and reservation rights. A person who owns 1000 points can reserve one week. Two thousand points is good for two weeks, etc.

****

Now let's take that concept a bit higher. First of all, it's easier if you set up a trust to own the property and then sell those ownership interests in the trust. So the deed is then held by a trust - not by individual owners - and the owners then have fractional interests in the trust. You now use the points to denominate the fraction of trust ownership.

The next step is to have a group of resorts instead of an individual resort. The trust can now own the deeds to all of the resorts in the group, and the trust owners now have fractional interests in each of the resorts based on the percentage of the trust they own. This is a bit like owning shares in a company.

Again, the fractions of interest can be denominated using the points scheme. And once you get the points set up, you can assign different numbers of points to different sizes of units at different resorts for different seasons and for varying lengths of stay.

Note that the ownership of the resorts is indirect, through the trust. The trust owner does not receive a deed and does not have a deeded interest in any property. Again, that's like owning shares in a company. You don't have any direct interest in the assets of the company, but you own them indirectly through your ownership of shares of the company.

***

Putting this together, you can have:

1. an divided, deeded interest. You own a specific deeded real estate interest, not shared with anyone else.
   
2. an undivided deeded interest. You are on a deed, along with a bunch of other people. (This seldom, if ever, happens with a timeshare because of the unwieldiness of having that many parties on a deed.)
   
3. an undivided trust interest. You do not have a deed, but instead have paperwork (like shares in a company) that establishes the size of your interest.

HTH.

 

[AwayWeGo]

Some Oddball eBay U.D.I.s Don't Add Up To A Full Week.

Even though I don't monitor eBay timeshares daily, I do have a look now & then at what's being offered & how the prices run on 2 of my favorite Orlando FL timeshares, where The Chief Of Staff & I own an every-year week at 1 & an EEY week at the other.

I have noticed that some of the eBay offerings for 1 of those resorts are not expressed as 1- or 2- or 3BR timeshare weeks, but as a certain number of UDI points, translatable via a table shown with the seller's item description, into days or weeks at the timeshare, with more points required for high-demand times, weekends, etc., & fewer required for mid-week times, offseason dates, etc.

Sometimes the UDI points being offered don't work out to a full timeshare week, leading me to guess that the original owner used those UDI points as part of a proprietary (i.e., non-RCI & non-I-I) points-based timeshare club anchored by UDI ownership at that timeshare. When the timeshare is resold, the club membership stops but the deeded UDI points remain. Whoever is next to own those UDI points can try to use'm at that particular timeshare, for whatever season & length of stay the UDI points might cover. But the resale buyer can't do the club-based points thing with those UDI points except by buying a new club membership for big bux.

We have no gripe against anybody's proprietary points-based timeshare system, but we shun paying timeshare companies big-bux for anything -- clubs, weeks, points, UDIs, you name it. If we can't get it resale, we don't want it. And if we can't sell it to somebody else when we're done with it, we also don't want it.

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​

 

[young@heart]

UID acronym

I'm also interested in learning about UDI, so was interested to find this thread.

UDI is an acronym that - unless I missed it - wasn't specifically defined. If I interpret correctly, though, it must mean 'Undivided Deeded Interest', is that right? (which was explained in previous posts...thank you)

This is all pretty new to me. Is there anything else that might be useful to know for a UDI owner, such as myself?

 

[icydog]

To expand on Roger's post a bit:

Let's say that you converted your house to a timeshare. To do that, you could create break the ownership of the house into 52 separate and distinct deeded ownerships, with each deed associated with a specific week of the year. Now you have created a divided interest. Each individual deed owner has a slice of ownership that is independent of the other ownerships.

Alternately, you could sell fractions of ownership where there is only one deed, but each person has a fractional interest in the deed. This is a bit similar to getting together with two buddies to buy a house together, and you decide that each of you will have a one-third interest. Now you have an undivided interest.

Now let's wrap points into this. There are 52 weeks in a year. For simplicity, let's say that each week of the year is equally desirable. So you set up a bank of 52,000 points, and assign a value of 1000 points for each week. You can then sell fractional interest using points to denominate the ownership interest and reservation rights. A person who owns 1000 points can reserve one week. Two thousand points is good for two weeks, etc.

****

Now let's take that concept a bit higher. First of all, it's easier if you set up a trust to own the property and then sell those ownership interests in the trust. So the deed is then held by a trust - not by individual owners - and the owners then have fractional interests in the trust. You now use the points to denominate the fraction of trust ownership.

The next step is to have a group of resorts instead of an individual resort. The trust can now own the deeds to all of the resorts in the group, and the trust owners now have fractional interests in each of the resorts based on the percentage of the trust they own. This is a bit like owning shares in a company.

Again, the fractions of interest can be denominated using the points scheme. And once you get the points set up, you can assign different numbers of points to different sizes of units at different resorts for different seasons and for varying lengths of stay.

Note that the ownership of the resorts is indirect, through the trust. The trust owner does not receive a deed and does not have a deeded interest in any property. Again, that's like owning shares in a company. You don't have any direct interest in the assets of the company, but you own them indirectly through your ownership of shares of the company.

***

Putting this together, you can have:

1. an divided, deeded interest. You own a specific deeded real estate interest, not shared with anyone else.
   
2. an undivided deeded interest. You are on a deed, along with a bunch of other people. (This seldom, if ever, happens with a timeshare because of the unwieldiness of having that many parties on a deed.)
   
3. an undivided trust interest. You do not have a deed, but instead have paperwork (like shares in a company) that establishes the size of your interest.

HTH.

Wow, just WOW! And you didn't even need to edit your answer. It must be nice to have a legal mind like yours. I'm truly enlightened and truly impressed!!

 

[taterhed]

I'm also interested in learning about UDI, so was interested to find this thread.

UDI is an acronym that - unless I missed it - wasn't specifically defined. If I interpret correctly, though, it must mean 'Undivided Deeded Interest', is that right? (which was explained in previous posts...thank you)

This is all pretty new to me. Is there anything else that might be useful to know for a UDI owner, such as myself?

UDI = Undivided Interest.

Search the forum: UDI or undivided or Points and you'll get lots of similar explanations.....
here's one http://tugbbs.com/forums/showthread.php?t=22192&highlight=undivided+deeded

 

[DeniseM]

*Please note that this question was asked in 2007.

 

[T-Dot-Traveller]

Thanks Steve / T_R_Oglodyte - 8 + years later

I am not even sure I had found TUG when Steve Nelson / T_R _ Oglodyte first posted this detailed and informative explanation .

So - thanks Steve - 8 + years later .I learned something new tonight while scanning " new posts" even though it was not " new"

I also appreciated your explanation a couple of months ago on how the DRI. Hawaii Collection worked with the various fixed weeks , deeds , Trusts etc .

Even though I will probably never own it - it is still nice to understand it .

 

[zentraveler]

Thanks Steve / T_R_Oglodyte - 8 + years later

I am not even sure I had found TUG when Steve Nelson / T_R _ Oglodyte first posted this detailed and informative explanation .

So - thanks Steve - 8 + years later .I learned something new tonight while scanning " new posts" even though it was not " new"

I also appreciated your explanation a couple of months ago on how the DRI. Hawaii Collection worked with the various fixed weeks , deeds , Trusts etc .

Even though I will probably never own it - it is still nice to understand it .

And I am going to add mine 14 years later!! I found this looking for the definition of UDI and found @T_R_Oglodyte 's post not only answered my question, but answered several others in such a clear way that as a non-point owner I have never understood. Extremely valuable and just as much now as ever. I am, essentially, bumping this with my thanks, but I suspect others will find this very useful now as well.

 

[pedro47]

T R Oglodyte did an excellent job in explaining what UDI means years ago.