Zion's Doorstep


Fractional ownership is a new, exciting, intelligent second home ownership alternative. Fractional owners purchase an interest in a residence or pooling of residences, in partnership with other owners. All fractional owners share time in the residence as well as its ongoing costs and expenses.

Typically, fractionals oversee residence management and maintenance, allowing ownership to be hassle-free.

Clients who do not want the day-to-day burdens and heavy costs of whole, outright vacation home ownership but who are looking for a property and usage program that is substantially greater than what is typically found with a traditional timeshare find fractional ownership to be ideal.

Questions about fractional home ownership

Is fractional owership the same as timeshare?

No. A typical timeshare involves the purchase of a week-long use of a small condominium during the same week every year. Fractional ownership permits the use of premium, resort residence (or several residences) for various weeks throughout the year.

Fractional home ownership can include a fixed week as well as unlimited access through a space available program, subject to availability. Fractional ownership is often represented by a deeded interest in the residence, held as tenants in common.

How many fractional ownership intersts are sold in a residence?

This varies and is dependent on the owner or developer’s designated fraction size. Fraction size is influenced largely by buyer feedback regarding desired ownership time at a specific destination.

Some typical fraction sizes are 1/2, 1/4, 1/6, 1/7, 1/8, 1/12, 1/17, 1/20.

How are reservations made?

Owners make reservation requests via phone or online through their designated owner assistant or reservation agent.

With fractionals, who has ownership privileges?

Typically, ownership privileges extend to the spouse of the owner, their children and to direct family members (i.e. grandparents and grandchildren) but this varies and is based on the individual fractional’s usage program.

How often can fractional owners use their residence?

Each fractional property has unique reservation policies and procedures which outline several different ways an owner may use their residence. Typically, these reservation policies and procedures are designed so that owners can make multiple reservations well in advance plus additional vacation reservations utilizing unallocated time and last-minute reservation requests. Many of these policies and procedures permit owners to request consecutive week vacations.

Can fractional owners use properties at other locations?

Typically, yes. Most fractionals have an established exchange program, portfolio or partnership whereby owners may vacation at other properties and destinations. Exchange programs are outlined through a fractional’s individual reservation policies and procedures and subject to availability.

Owners may be required to pay an exchange fee and/or associated housekeeping charges.

May guests utilize a fractional residence?

Typically, yes. Most fractionals allow guests of the owners to utilize their residence. Guests may visit on an owner-accompanied or unaccompanied basis, subject to the fractional’s individual reservation policies and procedures.

Beyond the purchase price, what fess are associated with fractional ownership?

Annual, quarterly or monthly dues are typically part of fractional ownership. The dues include pass-through costs such as utilities, insurance, improvements, maintenance, repairs, management and HOA fees and dues remove daily bill-paying obligations from owners. Dues may also include a reserve for replacement or, funds set aside for repairs or improvements which will someday be necessary for the residence.

How do fractional owners avoid the hassles of vacation home ownership?

Typically, all ownership costs (utilities, insurance, improvements, maintenance, repairs, management, HOA fees) are included in the fractional’s annual dues which are divided and shared among the owners. Additionally, many fractionals assure reserves are maintained to replace and update furnishings and accessories as necessary in the future.

Many fractionals also manage the usage program, day-to-day operations, maintenance, administration and accounting for their property or properties.

Is financing available for a fractional purchase?

In today’s challenging financial market, financing options are limited, especially for a specialty real estate purchase like fractional ownership. Banks who offer standard mortgage options do not typically offer these same options for a fractional purchase. However, some sellers and developers will offer financing and a few fractionals do have bank financing available. Clients should inquire with the individual fractional of interest to learn if financing is a possibility.

How does a fractional owner sell their interest?

Resale of an interest varies and is dependent upon an individual fractional’s rules and regulations. Typically, owners sell their interest by themselves, through a local real estate broker or utilize their fractional sales team for this effort. Additionally, many fractionals permit owners to transfer the ownership to another party, subject to the provisions of their ownership documents.