Equity vs. Non-Equity Golf Club Memberships

Joining a country club community is a significant lifestyle decision, especially in Florida, where the beautiful weather allows for a variety of outdoor pastimes. When you buy a residence, you access club amenities and activities, such as golf, racquet sports, swimming pools, dining, and social events. This lifestyle is a personal, professional, and financial choice. In general, there are two country club membership structures: non-equity and equity. Understanding the difference between the two will enable you to make the right choice for you and your family.

Non-Equity Golf Membership

Non-equity membership means that the club is owned and operated by an entity other than the members. The owner may be the developer, a professional firm, or another party. Thus, members are not involved in the club's operation; they pay their fees and enjoy the lifestyle. Further, non-equity members are not subject to unexpected assessments for budget deficits or improvements to the amenities. The Club at Olde Cypress is one of the few non-equity clubs in Naples, Florida.

Quick Non-Equity Recap:

• Not subject to assessment fees
• Non transferable
• No ownership
• Easy to resign when desired

Equity Golf Membership 

Equity membership means that the member is a part "owner" with a financial stake in the club and responsibility for its operation and maintenance. Members elect a Board of Directors to manage the club and hire outside staff to run the day-to-day operations. Most require members to spend a minimum on food and other services like golf carts and club storage. Further, equity members may be assessed monies to cover capital improvements and additional costs.

Quick Equity Recap:

• Members own a share of the club
• Members have voting rights
• Subject to assessments for improvements or other operating expenses
• Transferable