What does UDI stand for?

[nursekim Junior Member Find all posts View Profile Close nursekim]

My 1st post! These abbreviations are killing me!
Bluegreen just might be what I'm looking for...more reading to do...

[BocaBum99 Super Moderator Find all posts View Profile Close BocaBum99]

My 1st post! These abbreviations are killing me!
Bluegreen just might be what I'm looking for...more reading to do...

Hi NurseKim,

I remember your post on TUG regarding needing a trader in addition to DVC. If Bluegreen is interesting to you, we can help you determine whether or not it is. Fire away the questions.

UDI means UnDivided Interest. It is a fairly generic term in Real Estate. In the Bluegreen context, we are talking about special ownerships at Christmas Mountain Village and Shenandoah Crossing. These ownerships give you a minimum of 3 reservation per year. You can get up to 10-12 if you are on top of your booking privileges.

Hang around for a while. We'll provide you with as much info as you want or need.

[T. R. Oglodyte Moderator Find all posts View Profile Close T. R. Oglodyte]

To amplify on UDI:

Consider group of resorts that are operated jointly through a trust. To use a resort, a member calls the reservation center, and they can reserve whatever is available consistent with their usage rights. No "home resort".'

Now let's consider two ways of getting to that arrangement. In one common arrangement, you what you own is an interest in the trust. The bigger your ownership in the trust, the more usage rights you have. But all you own is an interest in the trust, which you own jointly and equally with everyone else. Should something happen to the trust, you have no distinct claim to any of the trust assets that is different from any other owners.

That is an undivided interest - you're part of group whose ownership interests can't be divided from each others. You all rise and fall collectively.

***

You can also get to the same arrangement using a deeded mechanism. In this case, when you buy into the resort group, you actually purchase a deed. You and every other deeded owner - then surrenders your usage rights under that deed to the trust. In exchange you receive trust usage rights that are commensurate with the value of what you own.

But if the trust goes belly up, you would get your specific deed back along with its usage rights. As you can guess, this is a divisible interest.

***

It can get really confusing because some resorts systems have both UDI and divisible combined into the same reservation system. In that case, you need to pay attention when buying to know if you are buying an interest in the trust itself (i.e., a UDI) or a divisible interest that has been joined into the trust.

Some outfits - Sunterra being an example - will not allow a resale of a deed to remain affiliated with the trust - they force the new owner to repay to join the trust. Many sellers aren't aware of that, so they will describe the unit as if it has trust like reservation rights without realizing those rights will terminate when the unit is sold.