CCL08/09

Fractional
Ownership 101
F
ractional ownership has been around for quite some time, but it
might be a relatively new term to many people. Popular in many
resort destinations across the country and around the world it
falls between whole ownership, where the individual owner has sole
responsibility and exclusive use of the property, and time-sharing,
where more often than not you purchase vacation time in a resort
and not the real estate itself. While time shares tend to lose their
value quickly, fractionals follow the market trend of appreciation
with the property values around them.
Brigantine Quarters
How Does It Work?
often are associated with a management
With fractional ownership, the deed
company that oversees the upkeep
is divided among multiple owners.
of the property and handles vacation
Like any other real estate, the assets
rentals. Most of these properties are
are taxable, represent equity and offer
afﬁliated with a global exchange com-
ownership beneﬁts such as interest
pany such as Resorts Condominium
deductions, depreciation and rental
International, which lets owners vaca-
income. The major beneﬁt is that costs
tion elsewhere by exchanging unused
are shared among owners.
weeks at the property they own.
Fractional ownerships can vary from

Ocean Palms Villas
a one-thirteenth, where owners use the
Fractional Ownership and
property for four weeks a year, to the
Hilton Head Island in the 1990s with Ocean Palms Villas
most popular, quarter ownership, where
Russell Brown, chief executive ofﬁ- in Port Royal Plantation on Hilton
they have 13 weeks a year. A rotating
cer of RBC Enterprises, Inc. on Hilton Head. The 96-unit development has
schedule gives owners different seasons
Head Island, South Carolina, helped two-and three-bedroom condomini-
and holidays each year.
ﬁne-tune the idea of fractionalizing ums and townhomes, and ownership
condominiums. In 1984, his company includes a golf and tennis membership
sold the nation’s ﬁrst fractional-owner- at the Port Royal Resort facilities, as
Beneﬁts
ship condos. Brigantine Quarters, in well as a management agreement with
The average family takes 21 to 28 Shipyard Plantation, is a quarter-own- The Westin Resort & Hotel. Own-
days of vacation per year. With frac- ership development with 48 two-and ers can use all the Westin’s amenities,
tional ownership, your vacation home three-bedroom condos and tennis, including an indoor pool, a spa, a
will not be unused for 48 weeks out swimming, playgrounds and picnic ﬁtness center and cart-fee-only rates at
of the year. And you can pass the deed areas–just a two-block walk from the the golf club.
down to family members or resell it Atlantic Ocean.
through a broker. The needs of the typical fractional For more information, contact
Most fractional developments are homeowner soon changed; people Bruce Tuttle at (843) 842-5560 or by
in high-end resorts with golf, tennis wanted more than just a vacation prop- e-mail at btuttle@rbcenterprise.com,
and a nearby ocean. These developments erty. RBC Enterprises answered the call or visit www.RBCEnterprises.com.
CoastalCondoLiving.com | NorthCarolinaCondoLiving.com | SouthCarolinaCondoLiving.com
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