How Does Fractional Ownership Work?

Fractional ownership essentially is such that it lets several persons buy into a property where they could not afford buying alone. Below is the step by step procedure involved in fractional ownership:
Acquisition of the Property: Investors pool their money together to purchase a property. The amount that each investor has contributed is in proportion to the percentage he will have in the property. It can be made directly as an individual or by a management company or investment firm pooling funds from various investors.
Ownership Shares: The luxury vacation home will be divided into ownership shares. Each investor may buy one or more of those shares. If the luxury vacation home is priced at $1 million, and there are 10 available shares, then each share is sold to the investors for $100,000. The bigger the stakes as well as the management power they may hold in the property if an investor buys more shares.
Property use: the rights to make use of the property are split in proportion to the number of shares an investor holds. For example, if he owns 25% of the shares, then he would be permitted to make use of the property for a quarter of the time which usually happens in the case of a time-share system. Else, he would be permitted to make use of the property either on a rotational basis or on a first come-first served basis depending on the terms of the deal.
Management and Maintenance: The Property usually has a professional management company, though at times, some owners do the management in-house. The Company will handle any repairs or fixing that needs to be done but has an ongoing calendar for the booking schedule of usage, and if it is rented, it also deals with the process of letting out.
Income and Expenses Income generated on a property, whether it is rental income, is proportionately divided with each person holding an equity share in them. Investors shall co-share costs on the said properties, such as maintenance fees, insurance, property taxes, and manag