Humber/Ontario Real Estate Course 1 Exam Practice

Buyer Helen is considering an arrangement to use a cottage for a specified period each year. What type of arrangement is this?

1. Fractional ownership

2. Time-sharing

3. Limited partnership

4. Equity cooperative

5. Non-profit cooperative

6. Leasehold interest

The correct answer is: Time-sharing

Buyer Helen considering using a cottage for a specified period each year indicates a time-sharing arrangement. Time-sharing allows individuals to purchase the right to use a property for a specified period each year, commonly for vacation purposes. This arrangement differs from other options provided in the choices: A. Fractional ownership involves multiple owners sharing ownership rights to a property, typically with each owner entitled to use the property at different times. C. Limited partnership is a business structure where two or more individuals manage a business and are liable only up to the amount of their investment. D. Equity cooperative involves a group of individuals collectively owning and operating real estate for the benefit of the members. E. Non-profit cooperative is similar to an equity cooperative but operates on a non-profit basis, providing services or facilities to its members. F. Leasehold interest refers to the right to use and occupy a property for a specific period, usually granted by a landlord to a tenant.