Thinking about a home in Indian Wells and trying to make sense of club memberships? You are not alone. Choosing between equity and non‑equity membership shapes your costs, your control, and your day‑to‑day experience at the club. In this guide, you will learn the key differences, what to review before you commit, and how to align the right membership with your lifestyle and financial goals. Let’s dive in.
What equity membership means
Equity clubs are typically member‑owned organizations where you purchase an ownership interest, often called an equity share or membership certificate. You usually receive voting rights and a voice in bylaws, budgets, and major capital projects. Equity members pay initiation fees, ongoing dues, and may be subject to special assessments for large improvements.
Because members share ownership, your influence is greater, but so is your exposure to capital calls. Most equity clubs maintain a board elected by the members who oversee financial reserves, long‑term planning, and operating policies.
What non‑equity membership means
Non‑equity clubs are owned and operated by a developer, corporation, or management company. Your membership is a license or contract rather than an ownership share. You typically have limited or no voting rights over major decisions.
Fees may be structured as non‑refundable joining charges or deposits described in the membership agreement. The owner bears more capital risk, yet can change pricing, policies, or even the club’s direction within contract terms. Transfer rules tend to be stricter, and some memberships are time‑limited.
Costs to expect
Both structures carry a mix of upfront and ongoing costs. Expect to evaluate:
- Initiation or entrance fee
- Monthly or annual dues
- Food and beverage minimums
- Capital assessments for major projects
- Transfer or assignment fees upon resale or assignment
- Guest, cart, and other usage fees
In equity clubs, assessments are more common because members fund big projects directly. In non‑equity clubs, the owner often funds improvements and may adjust dues or fees later to recover costs.
Risk and predictability
- Equity: You gain a vote and long‑term influence but accept more capital risk. A well‑funded reserve and a stable assessment history help minimize surprises. Review the reserve study and look for any pattern of frequent special assessments.
- Non‑equity: You avoid direct ownership risk, but the owner can change terms, pricing, or strategy. Stability depends on the owner’s financial position and long‑term plans.
In Indian Wells, seasonality matters. Clubs plan around winter surges in demand. Ask how seasonal revenue patterns affect dues, reserves, and planned capital projects.
Transfers and resale
Transfer mechanics differ and can affect your timeline and potential value.
- Equity: Memberships are generally transferable, often with board approval, and may involve a right of first refusal. Transfer fees and documentation are common. Resale value depends on the market and membership caps.
- Non‑equity: Memberships may be nontransferable or require owner consent, assignment fees, and strict conditions. Some end automatically with a home sale or member’s passing.
If a home is marketed with “membership included,” verify the exact transfer terms, applicable fees, and required approvals to avoid closing delays.
Member privileges
Your day‑to‑day experience can differ by structure and by contract.
- Governance and voting: Equity members typically vote on leadership and major decisions; non‑equity members usually do not.
- Access priorities: Equity members often receive priority for tee times and reservations. Confirm how priority is set across membership classes.
- Reciprocity: Ask whether the club offers reciprocal privileges and whether they apply equally to your membership category. Reciprocity can change, so confirm how those agreements are maintained.
- Financial transparency: Equity models offer more visibility into budgets and reserves. Non‑equity clubs are run by the owner, who sets financial policies.
Indian Wells considerations
Indian Wells sits in a resort‑driven market where winter demand is high. That demand influences waitlists, access priorities, and member mix. Some local clubs begin as developer‑owned and later convert to member ownership. Conversion terms can materially change your obligations and control.
Homes may be offered with memberships, especially in gated or resort communities. Always confirm whether the membership is equity or non‑equity, if it is actually transferable, and what fees or approvals apply. If there is an HOA, review CC&Rs to see whether any club participation or assessments are mandatory or linked to ownership.
How to decide
Match your priorities with the model that fits you best:
- Choose equity if you want governance rights, a voice in capital planning, and long‑term alignment with the club’s direction.
- Favor non‑equity if you value flexibility, a lower upfront ownership commitment, and less exposure to direct capital calls.
- If resale value matters, equity memberships often have a secondary market, but resale pricing is not guaranteed.
- For predictable obligations, a stable owner in a non‑equity model can offer clarity, though terms can change.
- For short‑to‑medium stays, a non‑equity option may simplify your exit. Confirm whether assignment is allowed and on what terms.
A practical way to weigh your choice is to score each club on control, upfront cost, transferability, dues history, and assessment risk. Compare two or three finalists side by side before you commit.
Due diligence checklist
Request these items before you finalize an offer or join:
- Membership agreement, bylaws, and articles of incorporation for equity clubs
- Membership categories with current pricing and privileges
- Transfer documents and fee schedules; any right of first refusal language
- Summary of membership counts by category and any waitlist policy
- Last 3–5 years of financial statements and the current operating and capital budgets
- Reserve study and capital improvement plan
- Board meeting minutes from the past 12–24 months
- Litigation disclosures and insurance coverage summaries
- Management contract if a third party operates the club
- Recent resale comps for the same membership class
- Written policy on dues increases and assessment authority
- Guest policies, tee time priority rules, and disciplinary procedures
These materials help you gauge solvency, governance discipline, and how the club balances member experience with long‑term capital needs.
Smart questions to ask
Use this list with the club, seller, or HOA to clarify rights and obligations:
- Is the membership equity or non‑equity, and what is the exact form of ownership or license?
- Can the membership transfer with a property sale, and what approvals or timelines apply?
- Are there any pending or planned special assessments? What amounts and timing?
- What is the current initiation fee and how do categories differ in privileges and pricing?
- How have dues and assessments changed over the past 5–10 years?
- Is there a current reserve study, and how well funded are reserves relative to recommendations?
- Does the club have a right of first refusal on transfers, and what are the timing requirements?
- What voting rights do members have and how are major decisions approved?
- What are guest policies, fee caps, and any seasonal restrictions?
- Are there reciprocal club agreements, and how stable are those arrangements?
- Are fees or privileges tied to specific property ownership or community rules?
- Are there any legal actions, ownership changes, or conversions under consideration?
- How are disputes handled under the membership agreement?
- For equity resales, what does the recent resale market look like for this membership class?
Offer and closing tips
Treat the membership transfer as its own workstream. Build in time for approvals and document review, and address cost allocations early.
- Make your offer contingent on membership approval and transfer within a defined period.
- Prorate dues and any assessments at closing, with clear responsibility for outstanding balances.
- Ask the club to provide written approval timelines to keep escrow on track.
- Confirm with your lender whether the membership is personal property and whether any club obligations affect financing.
- Have a real estate attorney review transfer language and escrow mechanics, especially if membership inclusion is part of your purchase price.
Next steps
If Indian Wells is on your shortlist, narrow your club options first, then align your home search with the membership that best fits your lifestyle and cost profile. Review the governing documents and financials for your top choices, and compare dues histories and assessment patterns. Small details in transfer rules or reserve planning can make a big difference in both your experience and your exit strategy.
If you would like discreet, data‑driven guidance and access to on‑ and off‑market opportunities that pair well with your preferred club model, schedule a private conversation with Michelle Trotter.
FAQs
What is an equity club in Indian Wells?
- An equity club is typically member‑owned, with voting rights, capital responsibilities, and transferability subject to bylaws and board approval.
What is a non‑equity club and who controls it?
- A non‑equity club is owned by a developer or company; members hold a license or contract and the owner sets terms, pricing, and policies.
Are club memberships transferable when buying a home?
- Equity memberships are often transferable with approval and fees; non‑equity memberships may be nontransferable or require owner consent and assignment fees.
How do special assessments affect my costs?
- Equity members can be assessed for major projects; in non‑equity models, owners may fund projects and later adjust dues or fees to recover costs.
What documents should I review before joining a club?
- Request the membership agreement, bylaws, financial statements, reserve study, transfer policies, dues history, and any rules on guest access and tee time priority.
