Certified Residential Appraiser Practice Exam

Which type of timesharing ownership provides limited usage rights to residents?

1. Fee Timesharing

2. General Partnership

3. Planned Unit Development (PUD)

4. Conservation Easement

The correct answer is: Fee Timesharing

Fee timesharing represents a type of ownership where multiple individuals share the rights to use a property for a specific period of time each year. This system allows owners to purchase a portion of the property, typically in a way that they can utilize it for designated intervals. The limited usage rights are inherent in this structure, as each owner has access to the property only during their allotted time, effectively sharing the space with others who also have similar rights. In contrast, other ownership types listed, such as general partnerships, suggest a more collaborative ownership model without the constrained usage typically associated with timeshare arrangements. A planned unit development (PUD) is a type of residential community structure allowing for more diverse housing options and common spaces, but it doesn’t function like timesharing with limited use periods. Similarly, a conservation easement is a legal agreement that restricts development rights on a property to preserve its natural resources or historical features; it does not give ownership or share usage rights in the same manner as timesharing. Thus, the characteristic of limited usage rights is distinctly aligned with fee timesharing, as each owner has defined access that is limited to specific times of the year.