Q:  How are fractional purchases financed?

A:  Recently developed financing products built specifically for the fractional marketplace, buyers and sellers alike have a number of financing possibilities. 

Q:  What happens if another fractional owner in the property encounters financial difficulty?  How are the others affected?

A:  They’re not!  Owners hold title as Tenancy in Common.  So, financial difficulties do not affect the others.  Creditors have no claim on the others or the others’ interest.  (Disclaimer: This is not intended as legal advice.  Seek input from your own legal advisor.)

Q:  How are weeks selected for use by the owners?

A:  In the reservation process, prospective buyers review the proposed use schedule calendar and select on the basis and order of reservation commitment.  All owners get an equal number of weeks use throughout all the seasons of the years.  All owners get equal use during peak and off-peak seasons.  Also, there is rotation so that the same owners do not get use on the same weeks and holidays year after year.  Fairness is the main consideration.

Q:  After purchasing, can I swap or trade time with another owner?

A:  Yes, absolutely. 

Q:  After purchasing, can I rent our my property?

A:  Yes, you certainly can.  Doing so will probably be governed by the Co-Ownership Operating Agreement (OA).  The OA is the document that establishes shared use and shared expenses of the property.  Plus, it also sets forth all the mutual expectations among owners.

Q:  Who cleans the property?

A:  Usually a professional management company.  This is also governed by the OA.

Q:  What are the estimated monthly expenses?

A:  Those costs will vary by property.  An annual budget for those costs is found in the OA and cover virtually everything including taxes, utilities, insurance, maintenance and cable.  They also cover expenses that are unique to the region such as pool/hot tub maintenance.  Also addressed in the OA is the handling of costs and damages beyond normal wear and tear.  Your agent can help you further in knowing exactly what the monthly expenses are.

Q:  Is there financing available?

A:  There are numerous options.  Besides paying cash or utilizing a home equity loan, there are also lenders who will make a fractional loan.