Frequently Asked Questions

What is fractional ownership?  You share the ownership of a property with one or more Buyer(s)/Owner(s). You are a deeded owner, given the same rights as with any other real estate purchase.

What about financing?  You do not need to take out an equity line, second mortgage, nor cash in your investment portfolio. Carolina Fractional can recommend lenders who make financing straightforward - with a selection of loans at attractive interest rates. Go to our Financing section for more details.

What are the advantages?  Reduced cost of ownership, no headaches or hassles to do with running a second property in a distant location, access to properties that you may not otherwise be able to afford, reduced environmental impact of second home ownership, oh, and did we mention reduced cost of ownership!Once you have equally divided the mortgage, taxes, insurance, maintenance, HOA fees, and running costs of your vacation home, the final price tag is very attractive.

Is this a timeshare?  NO! The key word here is "ownership". You are not buying time- you are buying deeded ownership in the property itself. Also, unlike a timeshare, you may reap the potential benefits of an appreciating property market. While no one can guarantee market performance, history has proven property to be a sound investment. 

When can I stay?  It is entirely up to the owners. Each owner is granted an undivided interest in the property. You can collaborate to develop a calendar of when everyone will be using the property. You are free to talk to one another to make arrangements or changes. A property manager can also act as a single point of contact. Either way there is flexibility in usage- the number of owners is small enough to keep things manageable.

Who pays the bills?  Owners have a professional property manager to handle the administration and maintenance of the property. This arrangement can be thought of as a homeowner association for the vacation property. Depending on the extent of services desired, you may choose additional services on an á la carte basis. All of the owners share the fees for these services. After closing, the owners can choose to manage their own affairs. Tasks such as coordinating repairs and maintenance, creating the annual budget, collecting the contributions from the owners, managing the bank account, and paying the bills are divided amongst the group. Either way, the group can control and divide responsibilities, so everyone can relax and enjoy their vacation home.

Can I rent out my home?  Yes! Owners can agree collectively to structure the rental process, or you may rent out the home on an ad hoc basis. Carolina Fractional's properties are located in areas where the vacational rental markets have been traditionally strong. 

How do I sell?  As a deeded owner, you can sell your "share" at any time. At the time of purchase, you should consult with your attorney to understand any contingencies or covenants with the other owners concerning selling. Most often, owners agree to offer their shares to the other owners first- a "first right of purchase/refusal" - before placing it on the open market. If you are thinking of selling, contact a real estate professional that is experienced with brokering Fractional properties.