Lockoff

What is a lockoff?

In the real estate business, a lockoff refers to a time-share unit that can be divided into two distinct dwelling units. Sometimes referred to as a “lockout,” this type of time-share gives the owner more flexibility in how the unit can be used.

Deeper definition

Lockoffs typically have two to four bedrooms, and must be able to be divided into two distinct living quarters. This gives the owner of the time-share several options. He can choose to rent out the entire unit, remain in half while renting out the other half, or rent out both halves.

A lockoff also may give the owner more flexibility with his time-share vacation time. He may be able to spend a week in one half of the unit and use the other half another time. Or, he may be able to stay a week and exchange his second week for another time-share resort.

Lockoff example

Becky and Jerry bought a time-share at one of their favorite beachfront vacation spots. The couple bought a lockoff. The locked-off portion of their time-share condominium resembles a hotel room, with one room, plus a bathroom and a kitchenette. The other side of the time-share has two bedrooms and is much roomier. The couple decided they would use the larger side of the unit for their annual two-week stay and rent the lockoff to someone else. The couple had thoroughly reviewed the property report and all the rules and restrictions for using and renting their unit before they bought it.

Need a mortgage calculator? Bankrate has a wide variety of calculators that can help you with different types of mortgages.

Other Real Estate Terms

Median price

Median price is a term used frequently in real estate. Bankrate explains its meaning.

Comparables or comps

Comparables, or comps, is a key real estate term. Bankrate explains it.

Market conditions

Market conditions is a term common in the housing industry. Learn more at Bankrate.com.

Tenancy by the entirety

Tenancy by the entirety is one way for spouses to own property. Bankrate explains.

More From Bankrate