Frequently Asked Questions (and Answers)

Do I really own this home?

Yes. You own this property and have all the same rights associated with typical home ownership. The only difference is that your frequency of use is restricted to the terms and conditions within your operating and management agreement. Basically, you must share rights of use with the other co-owners.

How many other co-owners are there?

There is no set amount of co-owners, but on average a fractional property is shared among 10 owners. With 10 co-owners, each owner has a right to use the property 5 weeks out of each year. (2 weeks remain open for home improvements, repairs, paint, etc.). It’s also common for an owner to buy two shares, which allows an owner 10 weeks out of the year. Some buyers share within a group of four, others within a group of 12. It really depends on your anticipated usage and budget. Call us and we can help you decide.

What happens when I want to sell my home?

You can sell your fractional ownership to whomever you choose at any time. We can (but not required) help you find potential buyers, as well as facilitate the transaction as your real estate agent.

What happens if someone defaults on a mortgage payment?

If a co-owner defaults for more than 60 days, the property management company temporarily absorbs the defaulting owner’s mortgage payment and (has reserved the right to) sells his or her fraction/share to the general public or another co-owner looking to acquire another fraction. The other co-owners are not liable for the defaulting person’s mortgage payment and will never pay more than outlined in the purchase agreement. Procedural documentation for this scenario is outlined in the owner’s operating and management agreement.

How do I check my house’s availability?

Each property comes with its own online scheduling software that allows owners to determine priority rotations, check on the home’s availability, set reminders and alerts, make reservations, cancel reservations, request the property to be rented during an owner’s usage period, and much more.

What happens if another owner wants to use my home at the same time I do?

There may be occasions when two owners want to use the property at the same time. According to the operating agreement (facilitated by the online scheduling software), one owner will always have a priority over the other, and each owner will share (in the form of a rotation) this “top” priority for an equal amount of times per year. The scheduling software allows for maximum occupancy, as well as equal owner usage.

How is my home maintained?

The management company absorbs general repairs and weekly cleaning services. Individual owners are liable and responsible for any major damage. For example, if the kitchen sink is leaky, it will be fixed at no cost to its owners. However if a plasma TV is broken, the individual owner may be liable. All major accidents are covered under its property insurance. Very rarely do we see major property damage. Keep in mind, the people using these homes own them.

How is this different from a timeshare?

Two major differences between fractional ownership and a timeshare:

• Luxury: Fractional owned homes are typically much larger, well furnished, and overall just a lot nicer. Timeshares tend to be small, run-down, poorly maintained, hotel room like condos.
  
  
• Value: Fractional owned homes are reasonably priced and can be used much more frequently.

  For example, with a Timeshare:

  25 owners (each gets 2 weeks) buys @ $47,000 = $1.2ml for a home that appraises well under $150k

  Fractional Ownership:

  10 owners (each gets 5 weeks) buys @ $30,000 = $300k for a house that appraises around $250k. In fact, if you compare timeshares to fractional ownerships, you’ll notice that timeshares are more expensive for less the home, not to mention lower class furnishings.

Note: All our fractional properties for sale include:

• Legal Home Ownership
• (Fractional) Tax Benefits
• (Fractional) Home Appreciation
• Annual Appraisals

• Luxury amenities (at no additional charge), include:

• Ultra-modern and stylish interior decor
• Hi-Speed Internet Access
• Maid service
• 24/7 private limo service (within city limits, including airport pick up)
• Professional property management & repair service
• Landscaping service (where applicable)
• Dry cleaning pick up & delivery
• Discounted Golf Fees

• Other amenities available upon request:

• In-house Chef
• Personal Shopper
• Personal Massage Therapist
• Personal Storage
• Home Customization Set up (photos, bedding, kid toys, etc)
• Rent-while-your-away® Service

Browse our fractional properties for sale

How is my mortgage payment calculated?

Just like a primary residency home purchase. It is based on the purchase price of your home, the dollar amount you want to finance, and your interest rate.

Can I rent out my home when I’m not using it?

Yes and No. It depends on the group of co-owners and ultimately your ownership agreement. Typically, co-owners opt to be part of a group that wants to rent or be part of a group that does not. Check with us before purchase if you have a preference because some fractional ownership agreements allow for it and others strictly prohibit renting to anyone outside its owner base.

How often can I use my home?

The number of other co-owners (or number of fractions) determines your frequency of use. Fractions are generally divided into 5-week periods. For example, if you are in a group with 9 other co-owners (10 owners total), you could use your property 5 weeks per year because there are 52 calendar weeks in a year. (2 weeks remain open for home improvements, repairs, paint, etc.). Likewise, if you were in a group with 5 total owners, you could use your property 10 weeks per year.

Will I Get financed?

Yes. Banks and lenders consider fractional owned homes to be similar to a second home, so it’s usually a lot easier to finance a fractional homebuyer. Also, interest rates are often lower on fractional or co-owned homes. However, not just anyone can get financing. If your credit score is poor, you can expect to pay additional interest, as well as place an additional down payment. Many properties are available with owner financing so the need for a traditional bank loan is eliminated. Virtually everyone can qualify with a down payment! Call us to further discuss