1. What is fractional ownership?
Fractional ownership is similar to any other real estate purchase except that you are purchasing a fraction of a home instead of the entire property. Under this concept, you receive a deed to your fractional share of a specific home, which is in turn insured by a title insurance company. A major attraction to this type of ownership is that you are able to enjoy most of the benefits of second home ownership at just a fraction of the cost.
2. How does fractional ownership work?
There is a recorded operating agreement that defines how the home is shared with the other fractional owners. If you purchase a 1/24 share, you’ll have two fixed weeks of usage (one week during the prime season and one week during the off season). If you purchase a 1/12 share, you’ll have 4 fixed weeks weeks of usage (two weeks during the prime season and two weeks during the off season.)
3. Will I always get the same weeks?
Yes. Owners choose their two specific weeks. Your deed to your fraction will have your specific weeks of usage per year. Example - Unit #102 Weeks 12 and 36. The weeks run from Friday to Friday.
4. Is buying a fractional complicated?
No, Fractional ownership is SIMPLE. It is similar to a typical real estate transaction involving a real estate contract between buyer and seller.
5. Can I finance my purchase?
Absolutely. There are financing options available at competitive rates. Spring Brook has strategically partnered with lenders to help with the process of financing your new property. Many buyers use home equity loans as well.
6. What amenities are included with my home?
Each property is independently maintained and completely furnished. Spring Brook emphasizes quality control in each property. A membership is available that allows owners the following privileges: golf, pool, fitness, discounted meals, discounted drinks, and discounted Pro Shop merchandise purchases. Guests of owners will also receive pool and fitness usage, as well as discounts on golf.
7. If I can’t use my week, can I trade it with other owners?
Yes! Spring Brook will organize the trading of weeks for a nominal fee.
8. Can I exchange some of my weeks for use at other resorts?
Most likely.We know that resorts such as Spring Brook are in high demand and we are researching which exchange program is best suited to our owners.
9. Can I let others use my home during my scheduled time?
Yes! Guests, relatives and friends may use your home during your scheduled time.
10. Can I rent out any of my weeks?
Yes. Any of the weeks or partial-weeks that you are not using your home, you can request to have the property placed in the rental program. Owners should notify Spring Brook as early as possible of any weeks they wish to rent.
11. Who pays the bills?
Spring Brook Management Company will process and pay all related bills, collect association fees and provide all accounting services necessary to manage the property. The owners equally share the property’s monthly costs including utilities, property taxes, cable, telephone and insurance.
12. What if something needs to be replaced?
A portion of your monthly fees goes into a reserve fund. This reserve fund can be used for long-term replacements such as new carpet, furniture and appliances.
13. Can I sell my ownership interest in the property?
Yes. Owners are free to sell their interest at any time. The process is the same as selling any other type of real estate.
14. Are there tax advantages to this type of property ownership?
Yes. Most of the same deductions are available to fractional owners that are available for whole ownership. You need to consult your accountant for specific tax advice.
For answers to additional questions, or to schedule a personal appointment, contact Cold Water Realty at (608) 254-1495.
