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!
Popular Real Estate Terms
Clause in an open-ended mortgage permitting the mortgagor to borrow additional sums of money in the future pledging than same real property collateral. A construction loan has a future ...
Name given by the Realtors National Marketing Institute which is affiliated with the National Association of Realtors. ...
Something coming before. Examples are the year before, first lien on property, and previous owner of property. ...
Originally strips of wood approximately 1 to 1 1/2 inch wide, 1/4 to 3/8 inch thick by approximately 4 ft. long which were nailed across the wall studs for the purpose of supporting ...
Agreement in which the contract price to build something is equal to the total costs incurred plus a predetermined profit. The profit may be based on a percentage of cost (e.g., 20% of ...
Contractual provision describing the terms under which coverage may be terminated. An insured or insurer may cancel a policy before its expiration date. Generally, a written notice of ...
In conducting a real estate transaction, each party is presumed honest and fair with no deceit. The intentions are honorable and realistic. If deception occurs without prior knowledge, the ...
Giving another an immediate benefit. Example are an employee in a real estate company receiving pension or health care benefits after five years of employment, and passing title to ...
Business organized as a distinct legal entity with ownership evidenced by shares of stock. To form a corporation, "articles of incorporation" must be filed with the state. When approved, ...
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