There are two forms of timeshare ownership. First, a timeshare unit may be a real, fee simple deeded interest in land. An owner of a deeded interest in a timeshare owns that “slice” of time by deed. For example, a one week deeded timeshare equates to a 1/52 fee simple deeded ownership interest. Deeded timeshares remain subject to fees, rules and regulations of the timeshare association, but the interest may also be mortgaged as an interest in land and the interest will be directly subject to real estate taxes for the county, municipality and school district where the unit is located, all of which will be the owner’s responsibility.
The second form of timeshare ownership, a "right to use" form of ownership, is a personal property interest. An owner gets no deed; rather, the owner has the right to use the property at a specified time of the year as a contract right. This type of ownership still obligates the owner to pay association and similar maintenance fees (and a proportionate share of taxes throught the real property owner). A timeshare company may offer a loan for a purchaser to buy a right to use property, but there is no mortgage since there is no deeded interest.
The implications of the types of ownership interests on the owners with respect to nonpayment of dues and taxes, transfers of the timeshare unit and passing on the timeshare through an owner’s the estate will be examined in future posts.
If you have questions about your timeshare, then experienced real estate and estate attorney Scott M. Amori would be happy to answer your questions. Call Amori & Associates at (570) 421-1406 for a no obligation consultation.