What type of interest does a "right to use" in timeshares constitute?

The "right to use" in timeshare arrangements constitutes a leasehold interest. This is because a timeshare usually involves the purchaser obtaining a right to use a specific property for a designated period each year without owning the property outright. In essence, the timeshare owner is granted a contractual right to occupy and enjoy the property during certain time frames, much like a tenant would have rights under a lease agreement.

In a leasehold interest, the owner holds a temporary right to use the property, which aligns with the fundamental nature of a timeshare agreement. The underlying property remains owned by another party or multiple parties, and the timeshare interest is typically limited to specific times assigned in the contract. This contrasts with freehold interest, where one has ownership of the property indefinitely, and licensing interest, which is a more general term that may not fit the specific arrangement of time-limited occupancy rights. Equity interest refers to an ownership stake in a property or investment that is not applicable in this context as it implies more than just the right to use a property for limited times.