Hawaii Real Estate State Practice Exam

When Sally purchases a "vacation license," she is acquiring the right to use a specific property at designated times, typically associated with a shared or pooled ownership structure. This aligns with the concept of a time share unit, which allows multiple people to own the rights to use a property for a limited amount of time annually.

In this context, the term "vacation license" usually refers to the arrangement where Sally is not buying an actual piece of real estate or a full ownership stake, but instead is purchasing a license that grants her access to the property during specific time frames. This differs from full ownership, where one would have complete control over a property, or from a rental agreement, which typically implies a temporary leasehold without ownership rights. Lastly, fractional ownership might suggest a more significant equity stake in the property compared to a vacation license, which is generally geared towards providing short-term access rather than a share of ownership equity. Thus, the transaction that Sally is entering is best characterized as a time share unit.