Fractional Share

Written by Diane Sievert
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A fractional share may sound similar to a time share--they do indeed share many of the same qualities. Fractionals, however, operate on a slightly different (and in many ways, less complex) system. The clientele of each type of program are also markedly different.

Standard Fractional Share Rules

Most fractional ownership options range anywhere from fourth to thirteenth shares. The size of the share is generally determined by both the quality of the home and the length of the vacation season. Purchasing a fractional share guarantees use of the home during prime season and additional float time that is typically assigned on a first come, first served basis.

The structure of fractional ownership is not wholly unlike condominium ownership. You pay fee simple interest in one of the units and this warrants use of the unit for the specified amount of time (see discussion above). Then there is the additional cost of the common areas, paid for in undivided interest.

Those are the basic fractional share rules. You will, however, want to carefully peruse the usage documents issued by the fractional management company. The usage documents may not follow the rules I've outlined above or they might make slight variations.

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