Fractional Ownership vs Timeshare – Detailed Comparison - Easytr

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Fractional Ownership vs Timeshare – Detailed Comparison

Fractional Ownership vs Timeshare – Detailed Comparison

We are all aware of timeshares being a scam perpetrated on the naive. Getting relaxed during a dreamy vacation at a beautiful location and getting trapped in high-pressure presentations of amazing offers of free meals, lodging, and recreational activities, is what timeshare deals are all about. A contract sold on an idea of a prepaid vacation for the remaining life is what many fall for. Soon after, you’ll discover the facilities of a regular hotel and nothing as promised. And the worst part is when you try to sell or cancel the timeshare, you will have to work a lot, and most of the time, you don’t even get people who can purchase it. Often you can’t even protect yourself from credit agencies hounding over you for ownership dues. We hope, after reading this, you don’t want to get trapped.

Fractional ownership is somewhat similar to Timeshares. Regardless of how many facilities you are getting, you shouldn’t need that. Fractional ownership is just a new term. It is today’s arrangements, called fractionals, that involve condo hotels, condotels, destination clubs private, and residence clubs, etc.

The principal difference between fractional ownership and a timeshare is in the system; the actual equity is divided. In a fractional ownership arrangement, the buyer owns a share of equity in the property. If the property moves up in rate, the fractional owner’s share also rises and gets a profit. However, in a timeshare, ownership is not shared. The owner purchases only a stipulated time of enjoyment in a property, and this entire time does not affect the rise and fall in value with the property. In a fractional ownership, the principal owner still owns the title.


Timeshares were introduced in the United States of America in 1969. These are a way to buy the right to use a vacation property for a definite period. You will not be an actual owner of the property and will not have any share in the equity. There can be a maximum of 52 owners of a single property as there are dozens of parties that own the same timeshares.

When you are using a timeshare, you have to pay for a week-long access to a resort, apartment, or condo room. You can share your timeshare property with others and can even sell it at any point in time.

Timeshare pros:

  • They come with a lower price tag as compared to a traditional home.
  • They provide condo accommodations.
  • These are easy to book.

Timeshare cons:

  • It comes with hefty, increasing annual maintenance fees.
  • The value is depreciated with the passing time.
  • You may face a lot of difficulties while reselling.

Fractional ownership

Fractional real estate ownership involves purchasing an ownership interest in a real estate property with others so that the high cost can be shared equally. This type of ownership is often seen in condo and resort communities and does not have limited access to the property as in a traditional timeshare. Fractional ownership owners have access to the home for five weeks or more per year. It depends on the number of owners per unit.

Often fractional ownership claims limit ownership to 6–14 parties per unit. Each fractional owner possesses an equal part of the real estate title while lessening responsibility toward maintenance and taxes. As these properties have fewer owners, fractional owners often have more rights on the property maintenance and upkeep while offering onsite accommodation for owners.

Fractional ownership pros:

  • This is a deeded ownership.
  • The value depends on the market trends.
  • They have fewer owners with onsite storage.

Fractional ownership cons:

  • It has a higher price tag than timeshares.
  • It comes with hefty annual fees.
  • Challenging while reselling.

The reality of owning any of these two variations of shared ownerships is not remarkable. At East Timeshare Relief, we are an expert on timeshare cancellation and can offer you the most cost-efficient and valuable services to not be trapped in scams or a no-exit agreement. Give us a call today or visit our website for more information.

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