Fractional Ownership is another type of shared vacation ownership it is real estate which is sold in modules of more than one week, but less than whole ownership. This product gives the purchaser the exclusive use of accommodation in property for a determined or determinable recurrent period of time (time modules) annually. This product is usually associated with a luxury vacation lifestyle.
Fractional Ownership weeks are priced according to the size of the unit, the amenities provided, the location of the property and the season in which the week is sold. For example, in-season weeks will cost more than out of season weeks.
It is important to know that fractional products come with the responsibility of paying an annual levy, which is paid to the Management Association – a non-profit body made up of all the owners of the property. These annual levies also pay for on-site management, furnishing replacements, amenities and the general upkeep of common areas as well as amenities like swimming pools and tennis courts.
Fractional purchases are typically financed by either a loan from the developer or credit card finance. Terms depend upon the amount of the purchaser’s deposit and the cost of the particular transaction.
Fractional Ownership products are usually affiliated to an exchange company, which gives you the flexibility of spending your vacation in different locations.