Would you like to own a second home on the Grand Strand for just a tenth of the going rate? Sound good? For a rapidly increasing number of Americans, fractional-ownership is a right answer. Owners get a beautiful, high-quality property in a fantastic location, with great services and amenities and a carefree vacation lifestyle for 10 percent or 15 percent of what they would have to pay to buy the property on their own. The cost of ownership is shared by a number of people. The homes, instead of sitting idle most of the time, are nearly always being used. Fractional ownerships form one of the fastest-growing segments of the vacation-home market. New sales totaled $1.5 billion in 2005, up 42 percent for the year.

Fractional ownership simply means the division of any asset into portions or shares. If the asset is a property, the title or deed can be legally divided into shares. In certain instances this is done by creating a company which owns the property, then allowing multiple owners or investors to own shares in the company. Those shares can be purchased and owned by more than one individual. The property is then managed by local experts. The reasons for this structure can vary. Two common reasons are to allow transfer of shares without the need to reflect changes on the title or deed to the property, and for tax benefits.

Shared ownership of the property and its deed will also entitle shareholders to certain usage rights, usually in the form of weeks. Conceptually, Fractional Ownership is not the same as Timeshare. Fractional Ownership affords much of the freedom and usage benefits offered in timeshare. However, the fundamental difference with fractional ownership is that the purchaser owns part of a title (as opposed to units of "time"). Therefore, when property appreciates in value, the shares appreciate as well. As with whole ownership, fractional owners can sell whenever they deem necessary or prudent, releasing the capital growth from their "bricks & mortar" investment.