This is the final phase in the life of a destination club membership when a club member asks to resign their membership and is repaid their refundable deposit and no longer has access to the club properties.

Typically, when a destination club member no longer elects to continue their membership, they go through the club's redemption process. Each club has their own unique resignation policies, often involving a set amount of new memberships being sold before a current membership is redeemed. For example, most destination clubs operates under a “three in, one out” resignation policy where three new members must be acquired by the club before they redeem one exiting member and refund that member’s refundable deposit.

Traditionally, when a member elects to resign their membership, they are placed on the club's resignation list while they wait for the club to acquire the new members necessary to redeem them. Traditionally, the person who has been on the resignation list the longest is the first one redeemed when new memberships are sold.

As the majority of destination clubs require new membership sales to redeem resigning members, the amount of time a member spends on the list is variable.

Each destination club has different resignation policies and provide different levels of disclosure given to resigning members. To receive a list of due diligence questions regarding resigning a destination club membership and other critical decision points, please request a free copy of our Destination Club Guide.

Back to the Destination Club Glossary.