25 questions to ask about fractional property ownership
If you’re thinking about investing in a fractional ownership property, here are the top 25 questions to ask the company about the property you’re considering:
1. Is the property offered ‘deeded property’?
2. What percentage fraction is being offering?
3. Are the weeks offered fixed or variable?
4. Is the building completed yet?
5. What percentage of the total units have been sold to date?
6. How many price increases has the development had over time?
7. Exactly what does ownership include?
8. May I see a printed list of the fees you charge?
9. If finance is required, how do you recommend I finance the purchase?
10. How long has the company been operational?
11. Do you mind providing the contact details of some customers who have
purchased fractional interests in your properties recently?
12. Can I test the reservation process and visit a property within the club’s
portfolio before joining?
13. If I decide to purchase a fractional share in a property, can I change my mind, and if so, by when?
14. What is the process if I wish to sell my fraction in the property at any time in the future?
15. How does one book for popular holiday periods eg. school holidays, and what booking system is in place eg. first come, first served and is there any priority amongst owners?
16. What additional services does fractional ownership cover (eg. concierge, car rental, airport pick up / drop off) and are there any extra costs?
17. Are there any additional fees or charges applicable in addition to the fractional property purchase?
18. Does the company have plans to raise prices – if so, when and by what rate and what factors would influence such price increases in the future?
19. Are photos and floorplans available for the properties and are their any
ownership rules – eg. are pets and is smoking allowed?
20. How are the properties furnished (what sort of style and decor, fixtures and fittings etc..)?
21. What other amenities can I expect at each resort – eg. access to vehicles, golf cart and professional access (where applicable)?
22. What is the average amount of days a member currently uses for the plan I’m considering and can you rollover any unused days to the following year?
23. Does the property complex partner with travel agencies, jet, yacht services or have access to any other assets?
24. Who owns the properties at present and what happens if the property company fails?
25. What do you believe are the strengths and weaknesses of the company and properties available and why should I ultimately buy this one in comparison to the choices available?
This information is for the convenience of our readers. The inclusion of a company should not be construed as a recommendation or endorsement by Fractional Life. Please review our full Disclaimer for further information.