Prudential Prime Properties & Fractional (Shared) Ownership

Prudential Prime Properties & Fractional (Shared) Ownership

Question: What is Shared Ownership?
Answer: Shared Ownership is the fractional sale of a whole property. This allows the purchaser to purchase only the time they wish to use. Thus, keeping expenses low, benefits high, and the price point reasonable. Shared ownership may be in the form of timeshare, fractional interest, or private residence club.

Q: What’s the difference between a timeshare and a fractional Interest?
A: A timeshare is most commonly purchased in 1 week segments and has become a tool for “trading” one’s week for another timeshare locations and destinations. They are often lower in price and not deeded. The demographic of timeshare buyers is often different than those of other shared ownership purchasers. Fractional interests are purchased as an effective and efficient vacation/2nd home purchase. They are deeded and are used as one would use a vacation/2nd home. They afford flexibility of use and offer greater amenities. They may be sold, bequeathed, and inherited, as with any other real estate holding

Q: How much time do I get when I purchase a Fractional Interest?
A: Each unit is fractioned into deeded x/y fractional interests. This affords the purchaser x days or y weeks of use during a given calendar year.

Q: Are there restrictions to the use?
A: To allow the greatest flexibility and give all owners fair and equal opportunity to reserve the time they desire, the usage plan allows for a typical fractional interests of X weeks to be divided equally between two seasons. Ex. 1/8 fractional interest = 6 weeks, 3 weeks: October through March and 3 weeks: April through September. Reservations are typically made in weekly segments but can be made for up to 3 weeks or as little as 3 days. In the case of less than a week reservation, segments must be a segment of an available week – either 3 days (Fri/Sat/Sun) or 4 days (Mon/Tues/Wed/Thurs). NOTE: 1) The 3 day/4 day breakdown is the ONLY formal breakdown for reservations. However other reservation blocks can be made as “Bonus Time”, for a daily fee and up to 30 days in advance, subject to availability. Each property may also have individual rules & guidelines.

Q: What is the reservation policy? How do I reserve use time?
A: Reservations may be made up to 365 days in advance and are subject to availability. The earlier one makes the reservation, the better.

Q: Will I always stay in the unit I actually purchased?
A: No. To allow for the greatest flexibility and the opportunity for owners to reserve the time they desire, owner reservations will be available for ALL units. Specific units may be requested, but not guaranteed, and are subject to availability at the time of reservation.

Q: What fees will I be assessed?
A: An annual HOA Fee will be assessed for each fractional interest. This will vary from property to property.

Q: What is included in the annual HOA Fee?
A: The annual HOA Fee covers the cost of all maintenance, utilities, furnishings, management and reserve funding.

Q: Are Pests allowed to stay in the units?
A: Yes. All pets must be registered in advance, at time of reservation. There is an allowable maximum of two animals in a unit. They MUST be housebroken and MUST not disturb the other owners in the complex. A pet security deposit will be required at check-in. The pet deposit is refundable 15 days after vacating unit, less a mandatory pet clean up fee. This can vary per property.

Q: Is there an occupancy limit per unit?
A: Yes. Each unit has a maximum occupancy of four (4) persons. This may vary with some future properties, check back for the latest offerings.

Q: Is smoking allowed in the units?
A: No. Smoking is prohibited in the units. Should it be determined that smoking has occurred in the unit during a specific period, the owner who reserved said unit will be assessed a cleaning fee. It will be the owner’s responsibility to ensure that any renters of their unit be held responsible to the owner of the fractional interest time and occurrence in question.

Q: Will I need to bring anything with me when I stay at the property?
A: The units are fully furnished and provide all the essential comforts of home. Items of a personal nature, toiletries, and food and drink are the responsibility of the occupant.

Q: Can I place my unit into an exchange program (i.e. RCI and II, for example)?
A: The current CC&R’s do not specify the ability for exchange programs. However, once the Fractional Interests are all sold, the members of the homeowners association can vote on the inclusion of exchange programs for the project, if they so desired. This may vary from property to property.

Q: What happens to any use time that I do not use during the year?
A: It is advised that one plan out their use time as far in advance as possible. Should an owner determine that they will not use all of their allotted time, they will have an opportunity to submit any reserved time that they will not be using to a rental agency for possible rental opportunities. The submission of unused time to a rental agency DOES NOT guarantee that the time will be rented.

Q: If I decided to sell my interest, how do I sell and market it?
A: If you decide to place your unit on the market prior to the developer sell out of the property, you will be required to list your Fractional Interest with the developer. The developer will place your Fractional Interest in a sequence of 8 developer interests sold from date of listing for every one resale. The offering price will be at the current developer pricing of fractional interests at the time of sale. There will be a ten percent (10%) sales commission and closing costs deducted from the sales price. Once all developer units have sold, an owner may choose to list their fractional interest with FIG Real Estate Affiliates and take advantage of their international distribution channel or they may list their interest with another real estate broker. NOTE: a commission and closing costs will be assessed and may vary.

If you have further questions about Fractional Ownership or the properties available please feel free to contact me at 781-820-2518 – Scott Nelson, Realtor. Prudential Prime Properties Wolfson Cutler Real Estate.
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