Membership frequently does not convey with the property, and eligibility to apply is not admission — there may be a committee and a waiting list. Establish whether membership is equity or non-equity, whether it is compulsory, and what the initiation, dues, minimums and transfer fees total.
In many resort and country club communities the club is the reason people buy. Buyers assume membership comes with the house. Frequently it does not.
In many resort and country club communities, the club is the reason people buy. Buyers frequently assume membership comes with the house. Sometimes it does. Frequently it does not, and the difference can be a very large number.
The first question, asked plainly.
In some communities membership transfers automatically with the property. In others it does not transfer at all, and a buyer must apply as any new member would. In others again, ownership grants eligibility to apply rather than membership itself.
Eligibility is not admission. There may be an application process, a committee, sponsorship requirements and a waiting list. Buying the house does not guarantee you will be admitted, and buyers occasionally discover this after closing.
An equity membership represents an ownership interest in the club. It may have resale value, and it may be refundable in defined circumstances.
A non-equity membership is a right to use facilities. It generally has no resale value and the initiation fee is frequently not returned.
Where refund provisions exist, read them carefully. Refunds are commonly payable only when a replacement member joins and takes your place on a list, which in a club with a long resignation queue can mean waiting years.
In some communities membership is compulsory for property owners, and dues are payable whether or not you use the facilities.
This is a permanent running cost attached to the property rather than an optional amenity. Establish whether it applies, what it costs annually, and what it has historically risen by.
It also affects resale. A property carrying substantial compulsory dues has a smaller buyer pool.
Initiation fee, and whether any part is refundable. Annual dues by membership category. Minimum spending requirements, which are common and frequently overlooked. Transfer fees payable on sale. Capital assessments for club projects, whether any are pending, and how they are levied.
Ask for several years of dues history. Clubs raise dues, and the trajectory tells you more than the current figure.
The financial diligence is similar and equally neglected.
Ask for the club's financial statements, its reserve position, and its capital plan. A club with ageing facilities and no reserve will assess members, and those assessments can be substantial.
Ask about membership numbers and the trend. A club losing members has a rising cost per member, which compounds.
Establish who governs it. A member-owned club and a developer-owned or corporately owned one behave differently, particularly on dues, capital spending and the possibility of the facilities changing.
Most clubs have tiers — full golf, sports, social — with different fees and different access.
Establish which category conveys or is available, what it includes, whether upgrading is possible, and whether there is a waiting list for the category you actually want. Buying a social membership while waiting years for golf is a common and disappointing outcome.
Get the club's membership documents, not a summary. Confirm in writing what conveys, what applying involves, what it costs in total, and what happens on resale.
Where the club is the reason you are buying, all of that belongs in diligence rather than after. A property bought for access you subsequently cannot obtain is an expensive misunderstanding.
Not necessarily. In some communities it transfers automatically, in others not at all, and in others ownership grants only eligibility to apply. Eligibility is not admission — there may be a committee and a waiting list.
Equity membership represents an ownership interest and may have resale value or be refundable. Non-equity membership is a right to use facilities, generally with no resale value and a non-returnable initiation fee.
Some communities require property owners to be members, with dues payable whether or not you use the facilities. It is a permanent running cost attached to the property and it narrows the resale pool.
Treat the club like an association. Ask for financial statements, reserve position, capital plan, membership numbers and the trend. A club with ageing facilities and no reserve will assess its members.
Establish which category conveys or is available, what it includes, whether upgrading is possible, and whether there is a waiting list. Holding a social membership while waiting years for golf is a common disappointment.
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