Thread: Hi There

I would say fractional is a fancy way to say Time Share.

VancouverWa,

I recommend that you search the forum for an answer, as I know I have seen a few posts on this exact topic.

Good luck, Michael .

I concur, fractional ownership = timeshare. Are you wanting to sell timeshares or what are you wanted to do or know?

I see no difference between Tenancy In Common and fractional ownership. TIC is a way two or more people can own property together which is what "fractional ownership" does.

In a TIC, there are some benefits. One is for transfer of the property upon death. Each can leave his or her interest upon death to beneficiaries instead of to the other owners. In some states, two people are presumed to own property as tenants in common unless they've agreed otherwise in writing.

There are many downfalls to this type of ownership as well. One is judicial partitioning of the property, I haven't seen where "fractional ownership" is distinguished from TIC on this point yet.

From what I gather this is a repackaged common law property ownership concept that that is older than any of us. It seems to me that some clever marketing person put the label on it and brokers TIC deals.

When I finish my US Bancorp series in my blog I'm going after this one.

VanCouver, WA

Thank you for your comment, actually Fractional is not a time share. It is a tenant in common with multi investors. All investors receive a deed for their interest, and tax benefits for each. They earn revenue when the property is rented and they have the advantage of staying in the property.

Suzanne

I stand corrected. Definetly not my area of expertise.

Originally Posted by OceanView Properties

I am a new real estate agent. I have been hearing things about fractional real estate ownership. Does anybody know anything about this?

Fractional ownership has been around for a while. A lot of people will tell you it is a high-end timeshare - which can't be further from the truth. Fractional ownership is a real deeded ownership, whereas timeshare is a right to access a vacation property.

Fractional ownership properties are luxury homes that are difficult for individual owners to own alone. A small group of owners basically share the upfront cost and upkeeping cost, so it reduces the burden of individuals.

Fractional owners can also enjoy the return of property value, so it is a good investment tool. As the general real estate market is slow, the fractional market is very solid. Buying a luxury property with others minimizes the risk of individuals.

but doesn't a fractional ownership basically spell out the same rights as a time share? what tangible differences are there?

Actually fractional ownership has been out there for a while, I know that is in the same lines as timeshare but it has differences in a way. I got some friends who invest on it.