What is fractional property ownership?

Fractional property ownership is when a property's title deed is legally divided, owned and shared by more than one person. Typically a fractionalised property will have between 4 and 12 owners per residence with usage rights to the property being allocated proportionately to the size of the fraction (or share) purchased. Usage rights to the property can differ with each fractional scheme, but are typically made up of either (or both) fixed or floating weeks which are pre-allocated each year.

A property which is sold to multiple owners means that entry price levels are drastically reduced and due to the fact that operating and maintenance costs are also split between the owners, means that fractional ownership provides are far more cost effective way of owning and enjoying a secondary residence.

Fractional Ownership is very often but incorrectly confused with Timeshare! Although both schemes are based on shared usage systems, the fundamental difference with fractional ownership is that the purchaser owns a fraction or share of the title (as opposed to only purchasing usage rights with timeshare). As with whole ownership, fractional owners can sell their share whenever they deem necessary or prudent, and can benefit the capital growth from their "bricks & mortar" investment.

Fractional property ownership was originally introduced in the USA, however, due to the benefits for developers, resorts and buyers, fractional ownership is now being incorporated into sales programs throughout Europe and Asia.