Trevor Ng
There are two types of golf club memberships: equity and non-equity. An equity golf membership is considered exclusive and expensive, with members owning a portion of the golf club. Members are often required to pay an initial membership fee, which is usually refundable upon resignation. On the other hand, non-equity golf memberships are owned by an outside entity, such as a developer or corporation, and members do not have ownership responsibilities or decision-making power. While traditional non-equity memberships were non-refundable, modern clubs often refund a portion of the initial deposit. It is important to understand the differences between these membership types to find the right golf community that aligns with your needs, lifestyle, and budget.
Transferable Golf Memberships
| Characteristics | Values |
|---|---|
| Type of Membership | Equity or Non-Equity |
| Ownership | Members own a portion of the golf club |
| Exclusivity | Exclusive and expensive |
| Membership Fee | Initial fee ranging from $5,000 to over $250,000 |
| Refundability | Refundable upon resignation, minus a transfer fee |
| Profitability | Members can profit from appreciation in membership value |
| Financial Obligations | Minimum annual spending on food, beverages, and amenities |
| Decision-Making | Members elect a Board of Directors to oversee operations and maintenance |
| Transferability | Transferable to subsequent purchasers of member's residence or adult children |
| Approval | Subject to approval by the club and payment of transfer fee |
| Waiting List | No wait list or resigned list for transfers |
| Spouse Membership | Spouse can continue as a member upon member's death |
| Heir Membership | Legatee or heir can acquire membership with club approval |
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What You'll Learn
Equity vs. non-equity golf club memberships
A transferable golf membership is a type of golf club membership that can be transferred to another person. The specifics of how and to whom a membership can be transferred vary depending on the club. Some clubs allow members to transfer their membership to their adult children, for example, while others may restrict transfers to the subsequent purchaser of the member's residence. Understanding the specific rules and restrictions of a particular club is essential before assuming that a membership can be transferred.
Now, let's delve into the differences between equity and non-equity golf club memberships:
Equity Membership:
Equity golf membership means that members collectively own a portion of the golf club. These clubs are often considered exclusive and expensive but offer premium amenities and benefits that surpass those of non-equity clubs. Equity clubs frequently require a substantial initial membership fee, which is usually refundable upon resignation, minus a transfer fee. Equity members have ownership responsibilities and decision-making power, often including voting rights and the ability to govern. They may also receive a stock certificate or form of security. Equity memberships are ideal for individuals who value exclusivity, ownership control, and potential financial returns.
Non-Equity Membership:
In contrast, non-equity golf membership means that the club and its amenities are owned by an external entity, such as a developer, corporation, or management company specialising in golf club operations. Non-equity members do not share the same ownership responsibilities or decision-making power as equity members. Instead, they enjoy a more relaxed and flexible membership experience, paying their fees and having access to the club's facilities and courses without the stress of ownership concerns. Non-equity memberships are perfect for those who want to enjoy golf and country club amenities without any added obligations.
The choice between equity and non-equity membership ultimately depends on an individual's lifestyle, financial preferences, and mindset. While equity memberships offer exclusivity and ownership advantages, non-equity memberships provide a hassle-free alternative with access to well-maintained private golf communities.
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Membership transfer fees
The cost of a golf club membership varies depending on the club's location, facilities, and prestige. Membership costs can include initiation fees, monthly or yearly dues, and additional costs for access to social events and amenities.
Golf clubs have different membership structures, with equity and non-equity memberships being the most common. In an equity membership, members collectively own a portion of the golf club. These clubs are often exclusive and expensive, with initiation fees ranging from $5,000 to over $250,000. Most or all of the membership fee is refundable upon resignation, minus a transfer fee of typically 10-20%.
Non-equity memberships, on the other hand, are owned by an outside entity and do not come with ownership responsibilities or decision-making power. Non-equity membership fees were traditionally non-refundable, but modern clubs often refund a portion of the initial deposit.
Some golf clubs offer different types of memberships, such as junior/senior, social, family/corporate, and non-resident/flexible memberships, each with varying price structures and benefits.
When it comes to membership transfer fees specifically, these are paid when a membership is sold, and they vary depending on the club and the type of membership. For example, the Vaquero Golf Club allows members to transfer their equity membership to their adult child over the age of 18 without any additional membership contribution, but a transfer fee is applicable and subject to club approval.
Additionally, nominee fees are paid when the designated user of a corporate membership changes, and GST is due on all fees paid to clubs, typically ranging from 9%.
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Membership application process
A transferable golf membership is one where the membership can be transferred to another individual. This can occur when a member sells their residence or home site within a golf community to a subsequent purchaser. In such cases, the new owner of the residence can apply for membership through the club's application process and take over the existing membership.
Now, let's outline the membership application process for a transferable golf membership:
- Understanding Membership Options: Before initiating the application process, it is essential to understand the different types of memberships offered by the golf club. As mentioned earlier, golf clubs typically offer two types of memberships: equity memberships and non-equity memberships. Equity memberships entail partial ownership of the club, come with premium benefits, and are more exclusive and expensive. Non-equity memberships, on the other hand, are more affordable and provide access to the club's amenities without any ownership responsibilities.
- Eligibility Criteria: Different golf clubs may have specific eligibility criteria for their transferable memberships. For instance, some clubs may require the applicant to be the subsequent purchaser of a member's residence within the golf community. Additionally, there might be age restrictions, such as allowing transfers only to adult children of the transferring member. Understanding these criteria is crucial before applying.
- Application Submission: The prospective member needs to obtain and complete the membership application form. This form typically requests personal information, including contact details, occupation, and other relevant data. It is imperative to provide accurate and complete information to ensure a smooth application process.
- Approval Process: Once the application is submitted, it will be reviewed by the golf club's management or the designated committee responsible for membership approvals. They will assess the applicant's eligibility, ensuring that all criteria are met, including any specific requirements related to the transfer of membership.
- Payment of Fees: Transferable golf memberships often involve the payment of applicable transfer fees, which vary depending on the club. These fees are typically paid by the incoming member to cover the administrative costs associated with transferring the membership. Additionally, there might be membership initiation fees or deposits required, depending on the type of membership being transferred.
- Notification of Approval: Upon successful completion of the review process and payment of applicable fees, the golf club will notify the applicant of their approval for membership. This notification may come in the form of an official letter, email, or other specified means of communication.
- Completion of Transfer: Following approval, the golf club will facilitate the transfer of the membership to the new member. This process may involve updating the membership records, issuing a new membership certificate or card, and providing the new member with information about their rights and responsibilities.
- Membership Privileges: Once the transfer is complete, the new member can start enjoying the privileges and amenities associated with the membership. These privileges may include access to the golf course, practice facilities, clubhouse, and other exclusive benefits offered by the golf club.
It is important to note that the specific steps and requirements may vary among different golf clubs, and it is always advisable to refer to the particular club's membership application process and guidelines.
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Membership benefits
Golf communities vary in membership structure, fees, and benefits, with the two main types of memberships being equity and non-equity.
Equity Golf Membership Benefits
Equity golf memberships are often considered the most exclusive and expensive type of membership. They offer premium benefits and amenities that typically exceed those provided by non-equity clubs. Equity members collectively own a portion of the golf club and have decision-making power. They elect a Board of Directors to oversee club operations and maintenance. Equity golf memberships often require an initial membership fee, which is usually refundable when the member resigns, minus a transfer fee. If the membership appreciates in value, equity members can profit from that appreciation. However, members usually must spend a minimum amount annually on food, beverages, or amenities.
Non-Equity Golf Membership Benefits
Non-equity golf memberships are owned by an outside entity, such as a developer, corporation, or a management company specializing in golf club operations. Non-equity members do not have ownership responsibilities or decision-making power, allowing them to enjoy a hassle-free and relaxed membership experience. They simply pay their fees and have access to premium courses and amenities without the stress of ownership. Modern non-equity clubs often refund a portion of the initial deposit, providing flexibility and convenience.
Transferable Golf Memberships
Transferable golf memberships are typically treated as personal property and can be sold separately from the house, although they are not included in the value of the home. These memberships have real value, as they provide access to exclusive golf clubs and their amenities. Transferable golf memberships can be sold to other community members or back to the HOA association, and they often appreciate in value, benefiting the seller.
Overall, the benefits of a transferable golf membership depend on the specific club and membership type. Both equity and non-equity memberships offer unique advantages, catering to different needs, lifestyles, and budgets.
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Membership fees
The membership fees for a transferable golf membership vary depending on the type of membership and the club. There are two main types of golf club memberships: equity memberships and non-equity memberships.
Equity Memberships
Equity golf memberships are typically found at exclusive and expensive golf clubs. With an equity membership, members collectively own a portion of the golf club. Equity clubs often require an initial membership fee ranging from $5,000 to over $250,000, depending on the club's exclusivity and location. Most or all of the membership fee is refundable when you resign, minus a transfer fee (usually 10-20%). Equity members also need to spend a minimum amount annually on food, beverages, or amenities like golf carts and locker rooms. Any shortfall is billed to the member at the end of the year.
Non-Equity Memberships
Non-equity golf memberships are owned by an outside entity, such as a developer, corporation, or a management company specializing in golf club operations. Non-equity members do not have ownership responsibilities or decision-making power. Traditionally, non-equity membership fees were non-refundable, but modern non-equity clubs often refund a portion of the initial deposit. Non-equity members simply pay their fees and enjoy the club's amenities without any added obligations.
Examples of Transferable Membership Fees
- Barefoot Resort & Golf offers a "Golf and Social" level membership for $190 per month and a "Social" only level membership for $79 per month.
- Vaquero Golf Club allows members to transfer their equity membership to their adult child over the age of 18 without any additional membership contribution, but a transfer fee is applicable and the transfer is subject to club approval.
It's important to note that membership fees and transfer policies can vary significantly between different golf clubs, so it's always best to check with the specific club you're interested in joining.
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Frequently asked questions
A transferable golf membership is one that can be passed on to another person. This could be through the sale of a residence or home site within a golf community or by bequeathing it to an heir or legatee.
In an equity golf membership, members collectively own a portion of the golf club. These clubs are considered exclusive and offer premium amenities. Members have ownership responsibilities and decision-making power, electing a Board of Directors to oversee club operations. Non-equity memberships are owned by an outside entity, and members are free of ownership responsibilities, simply paying their fees and enjoying the amenities.
Yes, there is typically a transfer fee involved in transferring a golf membership. This fee can vary but is usually around 10-20% of the membership value.
Yes, in some clubs, you may transfer your membership to your adult child over the age of 18. This transfer is usually subject to approval by the club and may require the payment of a transfer fee.
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