What is Interval Ownership?
Interval ownership, commonly referred to as time-sharing, is an arrangement under which a group of individuals or entities collectively owns a property, typically a vacation property, for specified intervals of time. Each owner holds an individual interest in the property, allowing for exclusive use during their allotted time period. These intervals can range from a week to several weeks each year, with ownership typically reflected in a deed or proprietary contract.
Examples of Interval Ownership
Example 1: Vacation Resorts
Consider a luxury ski resort offering interval ownership plans. Each unit in the resort is deeded to multiple owners. Owner A has rights to the first two weeks of February, Owner B has two weeks in July, and so forth. Each owner can use or rent out their allotted time.
Example 2: Beachfront Condominiums
A beachfront condominium complex sells interval ownership of each unit. Owner A can use their unit for one week every May, whereas Owner B uses their unit for two weeks in August. This setup allows owners to enjoy vacation properties at a fraction of the cost of full ownership.
Frequently Asked Questions (FAQs) about Interval Ownership
Q: How is the annual maintenance fee determined?
A: Annual maintenance fees are typically divided among owners based on the number of weeks or days they own. This fee covers property upkeep, taxes, and other expenses.
Q: Can interval ownership units be sold or rented out?
A: Yes, interval ownership units can usually be sold or rented out. Restrictive clauses in the agreement may apply, limiting rentals or specifying approvals needed from the management company.
Q: How does interval ownership differ from full ownership?
A: Full ownership grants the owner exclusive rights to the property year-round, whereas interval ownership restricts rights to specific time periods.
Q: Are there any financing options available for purchasing interval ownership?
A: Financing options for interval ownership are often more limited than those for full ownership but may still be available through some banks or directly from the developers.
Q: What happens if I decide not to use my time period?
A: Some interval ownership agreements allow owners to swap, rent out, or bank their time periods for future use through exchange programs.
Related Terms with Definitions
- Fractional Ownership: Property ownership model where several unrelated parties jointly own an interest in a property and share usage rights.
- Timeshare Exchange: System that allows interval owners to trade their allotted time periods at one property for time periods at another property.
- Maintenance Fees: Recurring expenses that interval ownership property owners must pay, typically covering maintenance, utilities, and administrative costs.
- Deeded Timeshare: Ownership form where the buyer receives a deed for their portion of time, giving them ownership rights similar to owning a piece of real estate.
- Points-based Timeshare: A flexible timeshare model where owners buy points that can be used at a variety of properties rather than owning specific intervals at one property.
Online Resources
- American Resort Development Association (ARDA): Provides information on interval ownership and the vacation ownership industry.
- Interval International: A global provider of vacation services and an exchange company for owners of interval ownership properties.
- Resort Condominiums International (RCI): Another major exchange company for timeshare and interval ownership properties.
References
- “Timeshare Industry Overview,” American Resort Development Association (ARDA).
- Kwok, J. “Understanding Timeshare,” Forbes.com.
- Bodamer, P. “Interval Ownership Basics,” Timeshare Today Journal.
Suggested Books for Further Studies
- “The Timeshare Industry: Evolution and Current State” by Charles Sullivan
- “Understanding Vacation Ownership” by Patrick Courchene
- “Managing Interval Resorts and Condominiums” by Montgomery Young
- “The Insider’s Guide to Timeshares” by Lisa Ann Schreier
