What you need to know – Fractional ownership is a new tactic used by timeshare companies to create revenue. A new variation on an old theme; fractional ownership allows resorts to sell off individual properties to multiple owners, rather than on a leasehold basis.
What You Should Do
You should treat fractional ownership exactly the same way you treat timeshares – with scepticism and extreme caution. They have been sold in such a way by some timeshare companies that courts have described them as tantamount to investment fraud. Fractional ownership is often presented as an investment. It is implied, or sometimes even incorrectly and dishonestly stated, that the price of fractional ownership is directly tied to the value of the property and that it will be easy to sell on for a higher price. This is untrue, and if you are told this on a sales presentation you should be highly sceptical about everything else that you are told.
What to Watch Out For
The sales representative may try to convince you that fractional ownership is not timeshares or a points club. Remember that for all intents and purposes it is – it is still covered by the same laws as timeshare and points clubs, and it is not an investment, it is a holiday product dressed up as a leasehold property. The only major difference between fractional ownership and traditional timeshare is that with a fractional ownership your name is on a deed of the property.
Fractional ownership can cost as much as 10 times more than an equivalent timeshare. The contracts are similar to timeshare contracts, often tying the owner into paying, ever escalating, maintenance fees for an indeterminate period.
If you have been sold fractional ownership, we may be able to help you. Here at the Timeshare Advice Service, our team of specialists have experience in terminating a wide variety of holiday ownership contracts. If you feel that any of the above applies to you or your fractional property, please do not hesitate to contact us today for impartial advice on your options.