Intero Resorts / Intero New Homes & Developments

FAQ

Q. What is fractional ownership?
A. Fractional ownership is essentially partial ownership of a property. With fractional ownership, a property is owned and shared by at least two, and often several, individuals. This type of ownership is gaining popularity in the vacation property and resort industry. To understand fractional ownership, consider a large, and expensive, property that may be difficult to purchase and care for on your own. Instead of becoming the sole owner of the property, you purchase a share of it, as do 5 other people. Now, you own 1/5 of the property and have others to share in the burden of maintenance and taxes. Though this option is popular with larger properties, it may be used with smaller, lower cost properties as well.

Q. What are the benefits of fractional ownership?
A. Fractional ownership offers an easy way to own vacation property. With this type of ownership, you have a place to go to vacation, yet are freed from being solely responsible for the property and related expenses. In most cases, a third party or management company takes care of everything from upkeep and utilities to taxes and insurance. Though you have little responsibility with a fractional ownership, you do get the deed to the property, specifying the number of shares you own. You can gift it or sell it as you wish without consent from the other shareholders.

By employing assets management, shareholders can deal only with the managing company, they never have to worry about spats with difficult partners; in fact they almost never meet their ''partners.'' Owners can also claim any tax advantages available to asset owners.

Flexibility is one of the key benefits of partial ownership, usually allowing owners to use the asset over their allotted time for a fee when possible. Conversely, when they aren't using their share, it can be rented or traded to others.

Q. What is the difference between fractional ownership and timeshares?
A. Fractional ownership are often confused with timeshares. Both fractional ownership and timeshare situations are common with vacation and resort-type properties. However, with a timeshare, you purchase a specific amount of time to spend at the property without actually owning any portion of the property. With fractional ownership, you own the portion of the property you purchase.