What it’s not: A short term rental or a time-share.
What it is: Co-ownership of a single property. This form of ownership is most common for vacation homes, which make it sound like a time-share. A time-share, however, means you buy a dedicated portion of time in a property, but you don’t actually own the property. With fractional ownership, a property is divided into shares, and the shares are sold to individuals who hold title. The original seller no longer has any ownership. Management of the property is handled by legal agreement. Owners must be party to decisions that affect the entire property.