How does Fractional Ownership work?
Fractional Ownership is the same as any other real estate purchase, except that you are only purchasing a fraction of the property instead of the whole property. Different developments and properties have a variety of options. The fractional shares can vary from a thirteenth (1/13th) to a half share (1/2). A thirteenth share, for example, provides one weeks use of the property each season for a total of four weeks per year. However, more common are 1/4 or 1/8th shares, where you have use of the property that coincides more with your annual holiday entitlement, sharing the property with a greater number of other purchasers. Under this unique form of ownership, an owner has registered title to the relevant share interest in the property.
Management of the property is taken care of by a management company. An annual budget is established and owners make quarterly payments to cover utilities, insurance, taxes and the like.
