Affiliate Broker Tennessee (TN PSI) National Practice Exam `

What type of estate involves multiple unrelated individuals each holding the right to occupy a dwelling unit at intervals throughout the year?

1. Condominium

2. Cooperative

3. Timeshare

4. Joint tenancy

The correct answer is: Timeshare

The correct answer is timeshare. A timeshare is a real estate arrangement where multiple unrelated individuals own or have the right to occupy a specific dwelling unit for designated periods each year. This means that each owner has the legal right to use the property for a predetermined amount of time, often arranged in weekly intervals. This type of ownership allows for shared access to vacation properties or resort units, making it an economical choice for those who want to enjoy a vacation home without bearing the full cost of ownership. It also facilitates the sharing of usage among different owners, ensuring that the property is occupied and maintained throughout the year. In contrast, a condominium involves individual ownership of a unit within a larger building with shared ownership of common areas. A cooperative is an arrangement where residents own shares in a corporation that owns the property, rather than owning the real estate directly. Joint tenancy refers to ownership of a property by two or more individuals, where each has an equal share and the right of survivorship, but it does not involve the concept of scheduled access or occupancy like a timeshare does.