Florida Broker Practice Exam

In timeshare ownership, what is the fee simple ownership commonly called?

1. Right-to-use

2. Interval ownership

3. Leasehold interest

4. Shared ownership

The correct answer is: Interval ownership

In timeshare ownership, fee simple ownership is commonly referred to as "interval ownership." This term specifically describes a form of ownership where individuals buy a share in a property, allowing them the right to use that property for a specific period each year. Interval ownership represents a legal title to the property for a defined time, distinguishing it from alternative arrangements like right-to-use, where the owner does not hold title to the property but instead has a right to use the property for a set duration without ownership. Additionally, leasehold interest typically refers to a situation where one has a lease for a specific term and does not attain outright ownership of the property, which differs significantly from the concept of interval ownership. Shared ownership, while it implies a joint ownership scenario, does not specifically hint at the defined intervals associated with timeshare agreements. Thus, interval ownership aptly captures the essence of fee simple ownership in the context of timeshares, as it pertains to the division and allocation of ownership rights over time.