Member-owned country clubs tend to be more exclusive and offer superior amenities. In member-owned country clubs, members purchase equity memberships. Owners are issued stock certificates. The value of the stock certificate will fluctuate over time as the club appreciates or depreciates. As an owner, you will have voting rights and take part in the club’s decision-making process. The upside of equity membership is that you will receive a partial refund of your initiation fee when you resign from the club. The downside is that you will be responsible for membership dues until your vacancy is filled.
Non-equity memberships are available in Country clubs that are owned by a developer or organization. Decisions are made by the owners of the club. Members don’t have voting rights. This can be beneficial because decisions are made by industry professionals with expertise. Additionally, members have less responsibility in running the club, leaving more time and energy to relax and enjoy the amenities. On the other hand, members don’t benefit from the club’s appreciating value and may not be eligible for a refund of their initiation fee when resigning from the club.
Equity Membership
- Members own the country club communally
- Grants voting rights.
- Usually granted a stock certificate that can increase or decrease in value.
- Responsible for any assessments that are levied.
- When an equity member leaves the club, they are eligible for a partial refund of the initiation fee.
- Must pay membership dues until the vacancy has been filled.
Non-Equity Membership
- A developer or organization owns the country club
- Do not offer a certificate of ownership.
- No voting rights.
- Not eligible for a refund of the initiation fee in many cases
- No benefit if the club’s value appreciates
- Not required to pay dues after withdrawing from the club.