How to Buy and Sell a Fractional Ownership Home

Each property is owned by a U.S. company called a Limited Liability Company (LLC). When you buy a fractional ownership share with International Property Shares, you’re purchasing a portion of that company. Since the company owns the property, and you are part owner of the company, you also own a share of the home. This setup makes it easy to manage the property and clearly defines the rights and responsibilities of each owner.

International Property Shared (IPS) not only simplifies the process for international buyers but also ensures that legalities are handled in a familiar and secure way. Typically, the entire purchase process can be completed within 30 days.

Of course, deciding whether to buy and determining which property to choose can be more challenging. IPS is here to guide you through both steps with transparency and support.

Steps for Purchasing a share of a Fractional Ownership Home

Here’s a breakdown of the process from the initial inquiry to receiving the keys to your new home:

Letter of Intent (LOI)

The buyer emails IPS with a Letter of Intent to purchase a share. The LOI is a simple document stating the buyer’s name, address, the share size, property name, location, and agreed price.

Example:
“I, Ginny Blackwell, residing at 12345 NE Main St, Seattle, WA, wish to purchase a 1/10th share of Maison Bleue LLC, a property located in Quarante, France, for the price of $67,900.”

Earnest Money Deposit

A 10% earnest money deposit is wired to IPS. This shows your commitment and secures the share during the due diligence process.

First Right of Refusal Process

The LOI is presented to the house manager and Existing owners are given the first right of refusal. The means they are offered the option to purchase the share under the same conditions. The owner group has up to 30 days to respond. In most cases, you’ll receive a reply within a few days.

Completion of Sales Documents

If the current owners decline the purchase, the sale proceeds and the following documents are prepared and/or reviewed by International Property Shares:

• Sales Agreement: Confirms the price, terms, and payment schedule.
  
• Bill of Sale: Signed by the sellers and emailed to IPS for documentation.
  
• Wire Transfer Instructions: Provided to send the remaining balance of funds to the sellers.
  
• LLC Operating Agreement: Reviewed, signed, and dated by the buyer, outlining owner responsibilities, property use guidelines, and voting rights.

Final Steps

After completion of the sales documents and

• The seller provides the buyer with a signed, dated Bill of Sale.
  
• Keys to the property are sent to the buyer.
  
• IPS introduces the new owner to the manager of the LLC to facilitate scheduling stays and attending annual owner meetings.

The entire process is designed to be efficient and supportive, allowing buyers to focus on the exciting prospect of spending time in their new home.

How to Resell Your Share in an IPS Fractional Ownership Home

Since most IPS fractional ownership properties are structured as LLCs, the resale process is remarkably simple. In fact, reselling your share closely mirrors the original purchase process.

Resale Options

• Sell Privately:
  Owners are free to sell their shares independently without involving IPS.
  
• Use IPS for Assistance:
  While IPS charges a 10% transaction fee for handling resales, many owners turn to us because of our longstanding reputation for trust, transparency, and expertise. Our team provides comprehensive assistance, guiding both the seller and buyer through each step.

Why Sellers Choose IPS

Quite naturally, buyers want to know all of the in’s and out’s of ownership, how and why it is structured the way it is, how they will book their time, who manages the property, whether there is owner storage and so forth. Our FAQ page addresses many of these questions.

In addition to “hand-holding” our fractional ownership clients through the process we offer:

• Marketing Reach: We can market your share to our network of interested buyers.
  
• Buyer Education: We handle inquiries about the property, usage structure, and ownership details.
  
• Streamlined Process: Our familiarity with the documents and procedures ensures a smooth transition.
  
• Ongoing Support: We offer continued support through negotiations, document preparation, and closing.

Is Fractional Ownership a Good Investment?

Fractional ownership is best viewed as a lifestyle investment rather than a traditional financial one. Buyers are primarily investing in the ability to enjoy a vacation property without the full burden of ownership costs and responsibilities.

That said, many fractional shares hold their value or appreciate over time, depending on factors like location, property upkeep, and market demand. However, like any property investment, timing can vary. Some shares sell quickly, while others may take longer to find the right buyer.

Regardless of appreciation rates and investment value, if you find yourself returning to your favorite place regularly, a fractional ownership home at least offers a piece of real estate to sell when you’re ready. The same can’t be said for home rentals, hotel bills or Airbnb stays, making fractional ownership homes a viable alternative to Airbnb stays.

Why Choose International Property Shares?

25+ Years of Experience

IPS has been facilitating fractional ownership with integrity and transparency for over two decades.

Personalized Guidance

We assess if co-ownership aligns with your goals, lifestyle preferences, and long-term plans.

Thorough Buyer Evaluation

We encourage potential buyers to consider essential factors such as:

• Demographics of the area
  
• Accessibility and ease of travel
  
• Management style of the property
  
• Annual maintenance fees and assessments
  
• Desired vacation style—whether you’re seeking relaxation or active exploration
  
• Owner amenities, such as storage and guest privileges

Trusted Relationships

Many clients return to IPS because they trust our comprehensive knowledge, responsive communication, and commitment to helping buyers make informed decisions. You don’t have to take our word for it, check out our client testimonials

Is Now the Right Time to Buy?

Sometimes the biggest hurdle is taking that leap of faith. If you’ve been dreaming of owning a second home abroad, fractional ownership can offer an affordable, low-risk entry point. Whether you’re drawn to the rustic charm of French villages or the scenic beauty of the Italian countryside, IPS helps make those dreams attainable.

Let us guide you through the process—step by step—until you’re holding the keys to your new home.

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