Fractional Ownership

Fractional ownershipFractional ownerships allow buyers to purchase a property with premium location and/or amenities at a fraction of the price. Learn more about this affordable real estate option below.

Fractional ownership — also known as partial ownership, shared ownership, shared interest, or co-ownership — occurs when a group of people pool their resources to purchase a property. It can be any arrangement, really, where more than one entity shares ownership of a property.

Scroll down to see the current fractional ownership properties for sale in Breckenridge and Summit County.

Why Consider a Fractional Ownership?

The benefits of the fractional ownership arrangement are many. Of course, it allows buyers to purchase a property with premium location and/or amenities at a fraction of the price. In Breckenridge, for example, these fractional ownership properties are often high-dollar, luxury properties, many with ski in, ski out access.

Fractional ownership is also a great solution for people who simply don’t have time to use the property for more than a small fraction of the year. Plus, many fractional owners say, if you have access to your vacation property for only a brief time, you may be more apt to use it during that time.

In most fractional ownership arrangements, you can rent out and collect the rental income on your fractional ownership interest during your weeks to help you defray your costs. Having a smaller payment, and a lower cost to defray, minimizes your financial risk while still allowing you to enjoy a vacation home.

How Does a Fractional Ownership Work?

Typical fractional ownership arrangements have each buyer receiving a 1/4, 1/8, 1/10, or 1/13 of the property, depending, of course, on how many other buyers are involved. Each owner has access to the unit for an equal number of days each year.

The most common fractional ownership arrangement in our resort market is the quarter share.  In a quarter-share, each owner gets the right to use the property for one-quarter of the year, or 13 weeks. Often, the four owners get to use the property in one-week or two-week windows, which rotate each year so that, in a four-year time span, each owner would have the right to all 52 weeks. Of course, each arrangement is different, and it’s important to make sure the arrangement is properly defined before you make an offer.

Many times, there is a management company involved, which helps to schedule everyone’s allotment and handles the cleaning and maintenance of the property for all owners. Costs for the management, as well as the other amenities and HOA fees, are divided equally among all owners. Each owner has the legal and financial responsibility for his/her share.

Keep in mind with these fractional ownerships, you generally do pay a premium for the split – in both the price of the home and the HOA fees. For example, at the time of this writing, we have a Copper Mountain Passage Point quartershare listed at $135K with $286/month in HOA fees. A comparable full ownership in the same building is listed at $429K and $660/month for HOA fees. Similarly a Tyra IV Riverbend Lodge quartershare recently sold at $217,000 with HOA fees of $352 per month. A comparable full ownership in the same building sold for $760,000, with HOA fees of $809 per month.

Some buyers start looking at quarter-shares and, for this reason, decide to buy a full ownership and rent out the place when they aren’t there.

How is a Partial or Fractional Ownership Different than a Timeshare?

When 12 or more fractions to a property are sold, it starts to feel a lot like a timeshare (which tend to have 26 or 52 owners sharing the property.) There are some similarities, and some differences.

Each timeshare arrangement and contract is different, and so are many of the partial ownership arrangements that offer deeded interests. This diversity makes it difficult to speak in broad terms about the similarities and differences. I will say that, unless there are unusual circumstances, deeded fractional ownerships can be rented, shared with others, sold or bequeathed.

Partial ownerships are often more expensive than timeshares. At the time of this writing, we have a luxury property in the Breckenridge market with deeded quarter-shares listed at $1M each.

Scroll down to see the current fractional ownership properties for sale in Breckenridge and Summit County.

Financing for Partial Ownerships

The majority of fractional ownerships are cash purchases. There is a local lender, here in the Summit County area, who offers financing with very specific terms on quartershares. Contact me for details. A very limited number of these partial ownership units have seller financing available, so we can discuss this possibility, as well.

What Should You Be Aware of When Considering a Fractional Ownership?

* It can be difficult to know, at first glance, exactly what you’re looking at – whether it’s a timeshare or a fractional ownership, and whether you are, in fact, buying a deeded interest. (When you purchase a deeded interest, it simply means that you will be listed on the legal title to the property.)  The key point here is to not get too caught up in what the property arrangement is called. Pay more attention to the details of the transaction and the arrangement. And ask a lot of questions so you’re certain what you’re looking at before you invest too much time into considering a property.

* Before you make an offer on a fractional ownership, ask about the resale stipulations. Is there anything you should know about should you decide to sell your interest?

* Make sure you fully understand the fractional ownership’s schedule of use. How is the schedule created? How will future schedules be created? Is it flexible? Is it fair?

* Will you have say in the management fees, now and in the future?

* Will you be able to rent the property during your share if you are not there to use it yourself? Do you have control over the management of this time?

Please reach out to me with any questions you have about fractional ownership in Breckenridge or Summit County, Colorado. I’m happy to arrange private showings of any properties that might interest you.

Fractional Ownership Properties in Breckenridge and Summit County, Colorado

Here are the fractional ownership properties currently for sale in Breckenridge and Summit County, Colorado. (You might also enjoy my post on The Cirque Condos for Sale in Copper Mountain. The Cirque is Copper’s premiere quarter ownership property.) 

The latest listings for partial ownership and fractional ownership properties in Breckenridge and Summit County, Colorado.
59 Results
3
Beds
3 | 2
Baths
3,655
SqFt
(25)
 
 
#S1004915 | Condo
Listing Broker: Re/Max Properties/69
3
Beds
2
Baths
1,936
SqFt
(21)
 
 
#S1001318 | Condo
Listing Broker: Colorado Craft Brokers
5
Beds
4 | 1
Baths
4,539
SqFt
(25)
 
 
#S394881 | Condo
Listing Broker: Re/Max Properties/66
3
Beds
2 | 1
Baths
1,593
SqFt
(19)
 
 
#S1004674 | Condo
Listing Broker: Re/Max Properties/69
4
Beds
4
Baths
2,279
SqFt
(25)
 
 
#S1003828 | Condo
Listing Broker: Cornerstone Real Estate Co.
1
Beds
1
Baths
797
SqFt
(22)
 
 
#S1003886 | Condo
Listing Broker: Jovan Inc.
3
Beds
2 | 2
Baths
1,700
SqFt
(25)
 
 
#S1005400 | Condo
Listing Broker: Cornerstone Real Estate Co.
4
Beds
4
Baths
2,600
SqFt
(25)
 
 
#S1003766 | Condo
Listing Broker: LIV SOTHEBY'S I.R.
3
Beds
3
Baths
1,936
SqFt
(21)
 
 
#S1005441 | Condo
Listing Broker: Colorado Craft Brokers
3
Beds
3
Baths
1,237
SqFt
(15)
 
 
#S1005455 | Condo
Listing Broker: Colorado Craft Brokers
2
Beds
2
Baths
1,118
SqFt
(19)
 
 
#S1006329 | Condo
Listing Broker: Breckenridge Associates R.E.
4
Beds
3
Baths
1,765
SqFt
(25)
 
 
#S1006070 | Condo
Listing Broker: Cornerstone Real Estate Co.
© 2017 Summit MLS, Inc., a wholly owned subsidiary of Summit Association of REALTORS®. All rights reserved.
The information being provided is for the consumer's non-commercial, personal use and may not be used for any purpose other than to identify prospective properties consumer may be interested in purchasing. The information provided is not guaranteed and should be independently verified. You may not reprint or redistribute the information, in whole or in part, without the expressed written consent of Summit Association of REALTORS®.
Summit MLS data last updated at August 17, 2017 3:34 PM MT

More Resources on Fractional Ownership:
Fractional Ownership Terms: http://www.sirkinfractionallawyers.com/short_format/fractional_ownership_terms.html

Now:
* Learn more by downloading my free Summit County Real Estate Handbook (Buyer’s Edition)
* Learn more about Breckenridge Ski in, Ski Out Real Estate.
* Learn more about 
Breckenridge Real Estate and Vacation Rentals How to have someone else help you pay for your dream home or condo when you’re not here to enjoy it yourself…
* Learn about your Rental Property Management Options.Who is going to take care of your property while you’re gone, and how are those short-term renters going to find and book your property?
Learn about potential Tax Deductions for Second Homes

More resources you might enjoy: