Is Fractional Ownership a Timeshare?
The phrase "fractional ownership" is typically used to describe shared ownership of a vacation or resort property by people in an arrangement which allocates usage rights based on time. In other words, only one owner will be allowed to use a particular home or cottage at a particular time.
Fractional ownership arrangements can be applied to a single home, cottage, multi-unit building, or resort development. In multi-unit developments, each co-owner may have ownership rights to all the units, some of the units, or only one unit, and his/her usage rights and cost obligations correspond to his/her ownership rights.
The terms private residence club (or "PRC"), timeshare, shared ownership, vacation home partnership and fractional co-ownership are also used to describe these arrangements, and there are no consistent distinctions in the use of these descriptions.
Since property usage is allocated based on time, this type of co-ownership falls within most legal definitions of a "timeshare", which means it can be subject to restrictions and requirements applicable to the creation and sale of timeshare property. Nevertheless, there are significant practical distinctions between most arrangements commonly called
Fractionals and the more traditional high pressure sales of
Timeshares.
Fractional ownership arrangements should not be confused with "destination clubs" (in which participants purchase a temporary right to use without ownership).
From a strictly legal standpoint, most definitions of the term "timeshare" encompass any arrangement under which a group of people share 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 fractional ownership arrangements.
At the GONE FISH INN Fractional Sales are an alternative to whole ownership that offers many advantages without the high pressure and full maintenance costs. It is actually a smarter alternative than whole ownership.
We call it,
"Hassel Free Ownership!"
The reality is that in North America, all fractional projects are generally regulated like timeshares. However, with our fractional product, there are some key characteristics that make our fractional product superior.
- Firstly, the Fractional Use Right Membership is yours for Perpetuity and can be transferred, sold, or willed by you at any time.
- Secondly, the Fractional Use Rights are sold in 1/10th intervals (or 5 weeks of use per year) and the use rights are fixed or ascertainable immediately. You may purchase as many as you need!
- Third, the Resort is held in trust by a third party trustee protecting the purchasers Fractional Use Right Membership from developer financing and any defaults of the developer.
- Last but not least, each Member has the ability to rent unused time through the rental manager for the Resort.
Our fractional use product is also superior to renting because our fractional product provides certainty of availability during the use periods allocated to each Member and mitigates the risk of increasing or fluctuating rental rates.
Each purchaser becomes a Member of the Gone Fish Inn Owners Association. As a Member, the purchaser is granted Fractional Use Rights in 1/10th intervals (5 weeks per year) to use a specific Cottage as described in the Membership Agreement and represented by the Membership Certificate. The Membership Certificate is yours forever and may be willed, gifted, or sold.
Each Member is entitled to vote in the Gone Fish Inn Owners Association as provided in the Articles of Association. Each Member is entitled to one (1) vote for each 1/10th Fractional Use Right owned by that Member.
While vacation home buyers for decades have shared the ownership and use of second homes to defray costs, it is only recently that this new arrangement has been an available ownership option in Alberta. This is now made possible through the formation of the Gone Fish Inn Resort at a Fraction of the Price of the current market value for this type of property in this area.
Gone Fish Inn is now offering you a new luxurious way to enjoy this Lakefront Recreational Cottage Resort. Fractional Use Right Memberships are now available at our highly exclusive Private Residence Recreational Resort.
Enhanced gracious living in the waterfront scenery accompanied with recreational activities, the residences at Gone Fish Inn Resort offer an incomparable Cottage Lifestyle to a fortunate few.
Cottages are now under construction.
Don’t miss this opportunity to get in at the
pre-construction pricing point!
It is no longer just a concept. It is a reality.
Visit www.gonefishinn.com for more information on how your family and friends can begin to enjoy your Vacation Cottage Getaway!
