What does Fractional Ownership mean?Is that like time share?

Asked by liz_frommel, Destin, FL Tue Jun 26, 2012

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Suzanne Swea…, Agent, Destin, FL
Tue Jun 26, 2012
Fractional ownership differs from "time share" in several ways. The property is deeded to the owners. One popular fractional offering in the Destin area has 8 owners, which gives each owner 6 weeks of use per year. The dates rotate each year. Monthly fees are collected from each owner each and every month, but those fees cover all utilities and maintenance. The 4 weeks left are for maintenance. Of course, the theory is few people can vacation more than that time period, and an owner has the use of a much more expensive property and its amenities than his/her fraction represents.
It's not for everyone, but it works for a particular niche buyer.
2 votes
Peter Mohyls…, Agent, Destin, FL
Wed Jul 11, 2012
Frac. ownership actually has tax implications. You do have a title.
0 votes
Myke Atwater, Agent, Santa Rosa Beach, FL
Tue Jun 26, 2012
Hi Liz,

The descriptions here are accurate. We don't see many of them in the Destin area, and the one that is probably best known is the Emerald Grande. These units start on the market for single owner at 425,000.

This makes the ownership of a "fraction" of one, along with others, an attractive alternative. The location is fantastic, right on the harbor, and makes your vacation spot affordable for x number of weeks per year.

If I can be of assistance, do not hesitate to contact me.

Myke Triebold, GRI, LMC, SFR, ABR
MykeSaysSold@aol.com
850-305-6256
http://www.DestinHomeRealty.com
0 votes
Pat Perrotta…, Agent, Destin, FL
Tue Jun 26, 2012
No, you actually own part of that unit along with 7 others. All furnishings and daily maid service is included in the fees, you can rent it out if you can't use it when it is your turn. The way it works is you have 2 weeks in the summer and 4 weeks spread out over the year on a rotational basis. The ones at Emerald Grande are luxury units in a luxury building on the Gulf with a 20,000 state of the art work out center. This is a destimation, and they have weekly fire works shows, concerts etc. There are restaurants and shops.

If you would like to take a look, let me know. Pat @ 850-830-5541
0 votes
Tim Moore, Agent, Kitty Hawk, NC
Tue Jun 26, 2012
Yes, sort of but only sort of. You are one of several owners and you each have a certain number of weeks a year that you can use, rent or ignore. Often there are 10 owners and each gets 5 weeks a year to do with as they want. The weeks rotate so one person does not always get July 4 or Christmas. The problems occur when you want to make changes or get new furniture, you have 9 partners that must all agree. All taxes, electric, water, insurance are all divided equally.
0 votes
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