There are many reasons why people purchase fractional ownership. Mostly it’s because they have fallen in love with the location of a particular fractional property. Fractional ownership can be one of the most enjoyable real estate purchase of your life. Below are a few points to consider while you purchase. Speaking of points, points from Marriott credit cards can be a great way to earn free stays in locations that you are researching to purchase fractional properties in.

1) What are the maintenance fees after purchase?

 You will need to pay a maintenance fee on your fractional properties. The cost generally depends on what amenities the property has. For instance, if there is a pool, clubhouse, a large garden or other resort-style amenities, then you can expect to pay a considerable sum of money to keep these running. However, if there isn’t then the amount you pay should be drastically lowered.

 2) Have a professional review your legal contracts.

 There are many legal considerations to keep in mind when you purchase a fractional property. In some cases, customers have been locked into restrictive contracts due to not understanding the full extent of their arrangements with the company they are dealing with. If you’re serious about fractional ownership, then make sure you have a professional review your contract so you won’t be given a surprise in the future.

 3) Is there a reserve fund for ongoing upkeep?

 There is usually a reserve fund that is included in the fees. This is to ensure that the quality of the property can be kept at a higher standard in the future, thus improving its worth and upgrading its amenities. This is important for long-term investments or if you love a location so much that you don’t plan to get rid of it. Think of these funds as a necessity to keep the quality of your fractional property up to a high standard, and don’t forget that it’s not just you contributing to it, but everyone who has partial ownership.

 4) Is the fraction size right for your future vacation plans?

 Everyone wants some time in the sun on their vacation, but you have to ensure that your end of the bargain suits your needs. Make sure you get a fractional length that is not too long for your needs. The last thing you want is to lock yourself into a contract for a home that is far too small or too long for your need.   Consider if you plan on gifting family and friends your unused time, and if the developer allows that.

 5) Does the use plan fit your family’s schedule and needs?

 Unless you’re able to commit time to your fractional property, there’s essentially no point in owning it. Make sure that when you sign up and purchase fractional ownership, you can actually reliably make the time to use it. This could be a specific holiday month each year, or even a certain date that you reserve annually.

 6) Is there an exchange company included with your purchase?

 If you can’t make it to your fractional on certain years, then you need an exchange company. Some purchases have exchange companies included in their packages. These companies allow you to “exchange” your ownership with someone else’s so that you can visit a different destination at your convenience.

 7) Is the developer reputable and reliable?

 Reputation is everything when it comes to real estate, and just because you’re purchasing a fractional property it doesn’t make it any less of an issue. Make sure the developer you’re working with has a solid reputation by asking current owners and reading reviews. Fractional ownership is closely related to the timeshare industry, which is something that people have been cheated into and left with a wrong impression.  There are always companies out there looking to make a quick bit of profit out of your misfortune, so make sure you’re dealing with a reputable company.

8) Is the management company experienced?

If the management isn’t capable of giving you the right service, you have good idea of what fractional property ownership will be like.

 9) Will you be able to rent your unused weeks? What is the split?

 If you’re unable to exchange your property, it should be possible to rent your property out to other vacationers. Make sure you discuss this option with the developer or management company to ensure you get a good split of the revenue.

 10) Will the developer help you with your resale should you wish to sell?

 Lastly, if you want to sell out of a fractional property then you need to understand what it’s going to take for you to do that. Some companies might help you with the resale, or have a dedicated realty help you.   Have others tried to resell their fraction at the same property and been successful?  How does the developer plan on marketing the resales?


Applying the above guidance points will help with your selection of fractional ownership. Hundreds of thousands of fractional owners are fully enjoying their ‘piece of the pie” today, relaxing and playing within a property that might have been out of their reach but for fractional ownership.