What does a blanket encumbrance refer to in timeshare context?

In the context of timeshares, a blanket encumbrance refers to a lien that encompasses one or more timeshares within a specific development or property. This means that the encumbrance does not just apply to a single unit or timeshare but rather affects multiple timeshares as well as possibly other common elements of the property. This type of lien is often used by developers to secure financing for the entire project, ensuring that if the financial obligation is not met, the lien can be exercised across all affected timeshare units.

The breadth of a blanket encumbrance allows creditors to have wider security against the overall property rather than limiting that security to a specific timeshare. This is particularly important in projects where multiple units share common amenities or are part of a larger property management system. Understanding this concept is crucial for evaluating risks and responsibilities associated with timeshare ownership or management.