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4.7 Time-Shares
- 19 Dec, 2025
- Com 0
Time-Shares
Time-share ownership is a fee or leasehold interest in a property where owners or tenants agree to use the property on a scheduled, non-overlapping basis. Time-shares are common for vacation or resort properties and provide for equal sharing of property expenses among owners.
- Time-share lease: The tenant rents the property on a scheduled basis (usually by week or month) for a set number of years. The use schedule and lease duration are pre-arranged.
- Time-share freehold (interval ownership): Tenants in common own undivided interests in the property. Each owner pays a share of the purchase price and annual expenses, and has use of the property for a specific period each year (e.g., one month out of twelve). Rules for usage and expenses are set by agreement. Owners usually waive the right of partition.
- Regulation: Time-share sales and development are increasingly regulated. Laws often require developers and brokers to provide detailed disclosures about costs and risks, allow a “cooling-off” period after contract signing, and require registration of advertising.
Example: The Blackburns buy a one-twelfth interest in a Colorado time-share for $20,000, giving them use of the property for one month each year and obligating them to pay one-twelfth of the annual expenses.
Check-In Questions
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What is a key characteristic of a time-share?
Show Answer
Correct Answer: Owners use the property on a scheduled, non-overlapping basis
Time-shares allow each owner to use the property for a set time, with no overlap. -
What is the main difference between a time-share lease and a time-share freehold?
Show Answer
Correct Answer: Freehold owners have an ownership interest, leaseholders have a right to use
Freehold (interval) owners hold actual ownership, while leaseholders have a temporary right to use.