Trying to choose between equity and non-equity clubs in Boca Raton? You are not alone. The membership model can change how much you pay, how much control you have, and how easy it is to exit later. In this guide, you will learn what each model really means, how the money flows, and what to verify before you buy in. Let’s dive in.
Equity vs non-equity explained
Equity clubs at a glance
Equity clubs are member owned. You buy an ownership interest tied to your membership, elect a board, and vote on major decisions. Your initiation fee is an ownership buy-in, and some clubs refund part of that fee when you resign, subject to bylaws and timing.
Because you are an owner, you may share responsibility for special assessments or capital calls. Equity also gives you a voice in budgets, policies, and long-term planning.
Non-equity clubs at a glance
Non-equity clubs are owned by a company, developer, or resort. Your membership is a contractual license to use the facilities. Initiation fees are often lower and usually non-refundable.
The owner controls operations, fees, and capital projects. Dues and terms can change per the contract. Members have limited or advisory voting rights if any.
Hybrids and transitions
Some clubs use hybrid models or transition plans from developer ownership to member ownership. Policies can change as a community matures. Always verify the current legal structure in writing.
How the money really works
Initiation fees
- Equity: Typically a buy-in to ownership. Refund policies vary. Some refunds depend on a resale or replacement member and can include waiting periods.
- Non-equity: Typically a non-refundable access fee. Any transfer or refund is defined by contract.
Ask for the written initiation schedule, whether refunds are offered, the formula, timing, and any transfer fees.
Dues and operating costs
Monthly or annual dues fund operations, staffing, maintenance, and routine reserves. In equity clubs, members approve budgets through elected boards. In non-equity clubs, the owner sets dues per contract.
Request the current dues, what dues cover, and a 3 to 5 year history of changes to understand the trend.
Special assessments and capital calls
- Equity: Members can be assessed for capital projects, subject to bylaws and votes.
- Non-equity: The owner usually funds projects and may pass costs through fees or assessments set in the membership contract.
Ask about recent assessments, reserve funding, planned projects, and any pending litigation that might affect costs.
Refunds and exit paths
Equity clubs may refund some or all of your buy-in when you resign, often after a replacement member joins and approvals are complete. Some clubs use a resale list with wait times.
Non-equity memberships typically end per contract with no refund. Some proprietary clubs allow transfers with owner approval and a transfer fee.
Confirm, in writing, the exit policy, approval steps, typical timing, and whether the membership can transfer with a home sale.
Governance and rights in Florida
Legal structures you will see
Equity clubs may be organized as Florida corporations or nonprofit membership corporations. Non-equity clubs are often for-profit entities such as corporations or LLCs. If the club sits within a residential community, HOA or condo documents can also apply.
Review articles of incorporation, bylaws, and the membership agreement. For community rules, review HOA or condo documents under Florida Statutes.
Voting and control
Equity members elect a board and often vote on major matters. Voting rights can differ by membership class. Non-equity members are customers under a contract, with limited voting.
Read bylaws and membership class descriptions to understand your rights.
Transfers and home sales
Club membership and home ownership are separate assets. Buying a home in a gated community does not automatically include club membership unless it is allowed and specifically conveyed by contract or required by deed restrictions.
Confirm the rules for including or transferring a membership with a home sale. Lenders and appraisers usually treat membership fees separately from home value.
Liens, dues, and disputes
Unpaid dues or assessments can lead to liens or legal action according to governing documents and Florida law. Ask for recent legal disclosures and board minutes so you can spot risks like disputes over dues, assessment practices, or transfer approvals.
Boca Raton context and what to verify
Boca Raton and greater Palm Beach County include a mix of member-owned and proprietary clubs. Many buyers research communities such as Broken Sound Country Club, Boca West, Woodfield, St. Andrews, Addison Reserve, The Boca Raton, and Royal Palm Yacht & Country Club. Treat these as starting points only.
Structures, fees, and policies change over time. Contact each club’s membership office and request current documents and fee schedules. Review recent real estate listings in each community to see how membership is marketed or conveyed in practice.
How clubs and HOAs interact
If a club sits within a gated community, HOA or condo rules can affect membership, facility access, or transfer steps. Some communities promote membership-included packages or require membership at closing. Others keep club access optional.
Request HOA or condo documents for the community you are considering. Confirm whether membership is required, optional, or transferable, and how dues and assessments are enforced.
Questions to ask in Boca Raton
- Is the club equity or non-equity right now, and are changes planned?
- Is the initiation fee refundable? What is the formula, timetable, and approval process?
- How are dues set, and how often have they changed in the last 3 to 5 years?
- What capital projects are planned, and how are they funded?
- What is the transfer process and typical timeline? Are waitlists common?
- Can the membership be conveyed with a home sale, and what are the fees?
- How do club rules align with the HOA or condo association rules?
Quick buyer checklist
Print or save this list as you tour clubs and homes.
- Ask if the club is equity or non-equity. Request the membership agreement and bylaws.
- Get the written initiation, dues, and transfer fee schedules. Ask for the refund policy in writing.
- Request audited financials, current budget, reserve study, and capital plan.
- Ask for board minutes from the past 12 to 24 months and any litigation disclosures.
- Verify HOA or condo documents and deed restrictions that affect membership and transfers.
- Check Palm Beach County property records for liens related to the club or community.
- Confirm transfer timing, approval steps, and any waitlist details.
- Before signing, speak with your real estate advisor, and consider a local real estate attorney for complex transfers.
Which model fits your goals
Choosing a model comes down to your time horizon, risk tolerance, and desire for control.
- If you value voting rights, long-term involvement, and potential initiation refunds, an equity club may fit. Be sure you are comfortable with possible assessments.
- If you prefer a simpler, more predictable contract and expect a shorter stay, a non-equity club may be better. Assume initiation is not refundable.
- If you plan to resell in a few years, focus on transfer rules and typical timing. A slow transfer process can affect your exit.
- Always match the club’s lifestyle and capacity to your usage. Review tee time policies, reservation systems, guest rules, and member caps.
How we help inside Broken Sound and beyond
As resident specialists with a senior-led, concierge model, we guide you through both the community and the club side. We coordinate membership office introductions, help you request and review key documents, and align your home search with the club policies that matter for your goals.
If you are exploring Broken Sound or nearby Boca Raton clubs, we can arrange a discreet tour, share village-level insights, and surface pocket opportunities that match your lifestyle. Ready to take the next step? Request a Private Tour and Community Introduction with Anne De Marzo.
FAQs
What is the difference between equity and non-equity club membership?
- Equity means you own a membership interest with voting rights and potential refunds, while non-equity is a contractual license controlled by the owner with limited or no refunds.
Are initiation fees in Boca Raton refundable?
- Refunds vary by club and model. Equity clubs may offer partial refunds with conditions and timing requirements, while non-equity fees are usually non-refundable.
Do I get club membership when I buy a home in a gated community?
- Not automatically. Membership is separate unless deed restrictions or the contract provide for a transfer that the club allows. Always confirm in writing.
Can clubs assess members for capital projects?
- Yes. Equity clubs can levy assessments per bylaws. Non-equity owners may pass project costs through fees or assessments defined by the membership contract.
How do dues and fees change over time?
- Equity club dues are set through member-approved budgets and can rise to meet needs. Non-equity dues are set by ownership per contract and can change at their discretion.
What should I review before I apply for membership?
- Get the membership agreement, bylaws, fee and refund schedules, financials, reserve plan, board minutes, waitlist policy, litigation disclosures, and related HOA documents.
Can a membership transfer with the sale of my home?
- Sometimes. Transfers depend on the club’s policy, approvals, and your contract terms. Ask about transfer fees, timing, and whether a waitlist applies.
