Fractional Home Ownership FAQs

Like many vacationers in Europe, we fell in love with the lifestyle in Europe and longed to really live there for part of each year. But how?

It seemed impractical and expensive to own and maintain a home we might use for a month or two each year. Instead, in 1998 we became one of the first to use an American limited liability company to buy a property in France which offered a simple vehicle for other like-minded people to join us.  

We purchased a farmhouse in the Dordogne region of France as co-owners and haven’t looked back since.

International Property Shares offers a unique opportunity to purchase a French or Italian property without a large outlay of capital. As an exclusive member (shareholder) of one of our LLC’s, you literally own a percentage share of the LLC (Limited Liability Company) which owns and manages the property.

With fractional ownership, you own your percentage of the property and can easily sell or donate your time to another as well as participate in the appreciation of the property. You typically have the use of 4-8 weeks per year. With a timeshare you do not “own” your property but typically have the right to stay there for a fixed week or two each year.
Read more about Fractional Ownership vs Timeshare

France and Italy have rather restrictive tax and inheritance laws if you buy a property outright. By using a US Limited Liability Company to purchase the property, the members are governed by home tax and inheritance laws.  This also facilitates the easy transfer of your property share.

Our LLC fractional ownership homes are member-formed companies which allow the shareholders to own and manage real estate in accordance with the conditions of the Operating Agreement.

An operating agreement for a fractional ownership home is basically the rulebook for the property.

It details who’s involved, how decisions are made, how money is handled, and what happens if someone leaves. This way all owners are on the same page.  It is a standard part of the buying and selling process.

Rather than use an outside management company, our LLC’s are member-managed. One member coordinates the annual meeting, distributes financials, assures the annual dues are paid, and is the liaison with our property management agents in France and Italy.  The manager accepts this role in exchange for no annual house dues.

Annual property expenses include homeowners’ insurance, property taxes, internet and cable, utilities and a contingency fund. These costs range between 850-1200 euros per share annually.

When capital improvements to the house are needed, each member of the fractional ownership home LLC divides the total cost by the number of fractional home ownership shares in the property. 

A typical timeshare in France or Italy costs around €1,100 per year for just one week of use. By contrast, IPS owners typically pay about €1,200 per year — but for 4 to 6 weeks of exclusive use.

Each fractional property has a slightly different format for reserving time but it is done on a rotational basis. 

Below an example of a fractional ownership property schedule with 13 owners with 4 weeks per owner per year. Each member is assigned a letter from A to M.

If you had Letter F in YEAR ONE: 
You would submit your first choice of a 4-week period to the manager by the 1st of June for the following year. 

Letters A-E: would have their choice preference before you for that particular booking year. The following season, your picking order would move up three notches to #3.

Annual Time Selection – rotating up 3 slots each year

My experience over 25+ years is that members are not necessarily competing for the same time slots.

In any given owner group, 2 or 3 people often prefer the summer season (July/August) as they might have children or grandchildren to consider.

The UK/ European owners can hop over fairly easily throughout the year. Many American and Canadian owners are approaching retirement and prefer to book in the shoulder season.

Each of our fractional ownership properties has an established caretaker who is responsible for cleaning and linens after each visitor.

Following each stay, the property is quality inspected and we leave euros in an envelope on the counter for cleaning and turnaround services.

Our Operating Agreement does not allow for commercial rentals. Owners typically have the option of allowing our family or friends to use their time so long as each guest has read, signed, and will abide by the house rules instructions.

Yes! This is one of the bonuses of owning an International Property Share home. If you find yourself wishing to spend some time in Provence and you are an owner in Umbria, why not swap times and enjoy a completely different experience?

1. Learn whether a shared home in France or Italy is right for you.
2. To better assess which property is a good fit for you, we’re happy to send you an IPS questionnaire to get started.
3. Decide whether to visit the property or to take a look at our videos.
4. Contact us to learn more and to arrange a Zoom appointment:
   Email: info@internationalpropertyshares.com
   Tel: 206 321-3547