Fractional Ownership

The term fractional ownership refers to the system of vacational system in which ownership of a unit within a resort is shared among several people agreeing on how many weeks each of them will use the unit. Only one owner will be able to use the unit at one time. The fractional ownership system can be used in apartments, buildings with many residential units or vocational developments. The groups of owners can be organized either by the developer, the hotel operator, by the prospect buyers or by groups of friends or relatives.

The fractional ownership agreements normally divide the units in fourths, eights, or twelfths, with each owner having the same legal Rights to use the property. The customer buys each fraction from a developing company which takes care of the maintenance, operation and manages the rental pool inventory.

This system is special attractive for owners that do not plan to use the unit 100% of the time, as the property is placed into the rental pool to be rented and produce a return for the owners. . In summary the system increases the efficiency of the reinvestment by maximizing the use of the asset.

The owners will not have to worry about any expense related to the property as they will be covered by the rent income generated by the units) The units will show a substantial increase in value as they are in a prime real estate location. The diversification and the risk hedge of the investment located in an International market different than their home country, is an additional important benefit to the prospect buyers.