Basic Types of Timeshare Ownership

Primary Timeshare Ownership Classifications

In its simplest definition, timeshare is a joint ownership or rental of vacation property by several people who take turns occupying the site for fixed periods. It is nothing more than a group of people sharing the cost of a vacation place.

Before, timeshare accommodations generally offer condominium units. Currently, timeshare properties include hotel room, a cabin, a house, a castle, a treehouse, a chalet, a boat, a yacht, and even a jet.

Timeshare ownership is a great way to vacation nowadays. It gives you the luxury and space like that of a condominium apartment and you also have the ability to exchange your timeshare property for other accommodations in desirable destinations in different parts of the world. Moreover, you get a hedge against inflation, because the price of your timeshare is established at the time of your purchase.

Timeshare is not whole ownership of the property, like a vacation or second home. There are three basic types of timeshare ownership scenarios. First, you have the fee-simple type. In fee-simple, you receive a title in perpetuity, which means you should have the rights to use, rent, lend, will, and sell your share of the property.

Other Types of Timeshare Ownership

You also have the leasehold type. A leasehold timeshare is almost similar to a fee-simple timeshare. The major difference is that a leasehold is not in permanence. Rather, it has a specified expiration date that may be at the end of a given year or it depends on the agreements.

The last one, you have the right-to-use timeshare. A right-to-use timeshare gives you the right to use a particular unit or unit size each year. Most right-to-use timeshares are similar to leasehold timeshares in that the majority have a specified expiration date.