1. Interval Ownership
Robert S. Freedman
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2. Historical Perspective
Historically speaking, timeshares are structured as either a timeshare estate or a timeshare license
Timeshare estate = conveys an interest in real property (either perpetual or for a term of years, usually tied to an underlying ground lease) coupled with a right to use accommodations
Timeshare license = gives the right to use accommodations but without an underlying property interest
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3. What is the timeshare regime?
must first explore local and state requirements that would be applicable to the project
do not assume that state law is the only law that controls or applies
may turn on whether the developer owns fee title to the underlying property
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4. Basic Timeshare Structures
condominium
condominium units and common elements
units are divided into weeks or interests
can have a timeshare estate consisting of a tenant-in-common interest in a condominium unit
unit owners collectively own the underlying property
cooperative
underlying property is owned by the cooperative association
purchasers receive a share in the association which enable exclusive use of certain accommodations
no deed of any interest in the underlying property
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5. Basic Timeshare Structures
undivided tenant-in-common interest
CCR’s are recorded against the underlying property
purchaser receives a deed to an undivided tenant-in-common interest in all or a portion of the underlying property
be sure to look at subdivision laws – this might cause problems in being able to convey the interest
trust relationship
underlying property is conveyed to the trust
purchasers are beneficiaries of the trust
no deed of any interest in the underlying property
trust documents govern use and occupancy
is the way many European timeshare projects are created
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6. Types of Use Plans Fixed week and unit Fixed week/floating unit
Floating plan
Points
Hybrids with preferred reservation features and specific assignments
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7. TPA#

8. Tax implications for structuring
Windrifter decision – sale of a timeshare license is a “lease”
“to deed or not to deed – that is the question”
real property interest vs. personal property interest
state and local taxes particular to timesharing
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9. Exchange Programs
optional membership, but it is so attractive to a purchaser that nearly all get involved in an exchange program
you deposit a reservation for your timeshare, and then withdraw occupancy rights in another location
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10. Multisite Vacation Clubs
multiple timeshare projects are joined together to allow cross-occupancy through a master reservation process
often utilize a points system to guage the level of accommodations that can be reserved for occupancy
gives purchasers more options and flexibility when purchasing a timeshare interest, making the product more attractive for sale
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11. Resales often hard to accomplish
needs to be a secondary resale market to ensure health of timeshare projects
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