How does fractional ownership differ from time-shares?
Both the arrangements known historically as timeshares, and the arrangements now referred to as fractional ownership, fall within the legal definition of a “timeshare” in most U.S. states. From a strictly legal standpoint, the term “timeshare” refers to any arrangement under which a group of people shares use of a property based on time, regardless of whether they own the property and regardless of whether a management company or developer is involved in organizing or operating the property. But from a practical standpoint, there are significant differences between most of the arrangements historically referred to as “timeshares”, and most modern vacation property fractional ownership arrangements. Put simply, the meaningful difference between most old-fashioned timeshares and most modern fractional ownership arrangements is the extent of ownership and control given the users of the Property.
