FRACTIONAL OWNERSHIP
What is fractional ownership?
This is not a clever way to cover up the name of a timeshare with a new term in order to push it onto a buyer who is fed up to be offered timeshares, as some might think!
When it comes to your vacation, both business models (timeshare and fractional) are essentially shared ownership of vacation homes. However, from a legal perspective, fractional ownership and timeshare ownership are completely different from each other. Which one is best for you depends on whether you want to buy an actual property or just guarantee a vacation every year.
While a timeshare is an exclusive right for occupation and recreation in apartments for a period of a multiple of a week at some resort, supported by an appropriate document in accordance with current legislation and giving its owner, in addition to the right to use, the right to sell and rent out this week apartments
What is Fractional Ownership?
The difference of Fractional ownership from a timeshare is that the first one gives you a real share of the resort property. It is positioned as a way to buy overseas property rather than just a holiday, but at a much lower price than resort property. For the agreement to qualify as a fractional ownership agreement, you must receive an option to purchase at least one-thirteenth of the property, with a maximum of twenty-five percent available for purchase. This usually involves some kind of deed that therefore gives you an interest in the property.
On the contrary when you buy a traditional timeshare you are usually purchasing one or two weeks of use of a specific property. This agreement does not include a Title Deed. With a timeshare, you have the right to spend a specified amount of time in the property each year.
Remember, if you want to buy the right to vacation every year at the same property, or with the flexibility to use other properties, you need to buy a timeshare.
If you're looking to buy a share in a property, rather than just permission to live in it, look at Fractional Ownership.
Tenerife, Costa del Sol, Asia Pacific, Egypt and India, Alps, Scandinavia, Mediterranean, ResoFractional Ownership
