Definition of "Timeshare Homes"

Timeshare homes is the popular name given to the concept of fractional ownership in real estate, and, in fact, is a better term to explain its meaning.

Why?

Well, fractional ownership means basically someone owns a fraction of something, right? In this case, a real estate property. But how can one share a property with someone? They can’t each get half of a room, right? So, they created timeshare homes, where the fraction in question is time and not property; that is: that house is theirs – the whole house; not a fraction of it! – only for specified periods of the year. Got it?

Timeshare homes are very popular in typical vacation areas. For instance, Orlando Real Estate Agents are used to negotiating lots of timeshare homes because, when buying a second home, a lot of people – from the US and elsewhere – find it a good opportunity to have a house for their annual vacation near Mickey Mouse and company.  For instance, a lot of snowbirds have their second home in a time-sharing regime.

But how is that timesharing done? There are several ways it can be done. In some of them, the owner purchases interest in the property; in others they don’t and the timeshare home contract acts as a lease that gives the buyer the rights of use. Some are fixed-week (or month) ownership and every year they own that specific period, while others are floating-week ownerships where there is a range of available time slots the owners have a right to use. Not to mention the point-system ownership (also known as vacation clubs) where buyers get “points” that can be converted and redeemed at various locations, and act as a currency of preference in the busiest seasons.

Real Estate Tip:

Timeshare homes can be great! But before committing, do your due diligence! And the best way to do that is by having a real estate agent that knows his/her way around timeshare homes!

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

After-tax cash flow is a calculation method for companies’ financial performance to show their ability to generate cash flow through their operations. The after-tax cash flow formula ...

A binding arbitration is a way to solve disputes without going to court. An alternative to the more expensive and lengthy legal procedures, a binding arbitration is basically the process ...

One to whom a gift or bequest is made. ...

Legal contract in which the lender controls the pledged property being financed. The agreement describes the property and its location. Of default occurs, the lender may sell the ...

In general terms, a licensee means a person or legal entity who has received authorization or permission to perform a particular activity through another party (the licensor in our case.) ...

Refinancing seems easy to understand but is it really? Here’s a lengthy refinancing definition so you can make up your mind once and for all regarding the exquisiteness of the ...

Under law, a warranty in effect even if not expressly stated. It provides that real property sold is warranted to be appropriate for sale and is in proper condition even if not stated, ...

A closed-end mortgage is a mortgage in which the collateralized property cannot be used as security for another loan. See also open-end mortgage for a better understanding of the ...

English architecture. This style has two levels with the second level typically overlaying the first story. The roof is high and the chimney is sculptured. ...

Popular Real Estate Questions