• Home
  • About Laura Allen, Broker Associate | Tahoe Real Estate Professional, Advisor, Agent CA RE# 01473598
  • Search Tahoe Homes
  • Search Tahoe Condos
  • Communities
  • Buyers
  • Sellers
  • Contact
  • 530-414-1260

Lake Tahoe - Truckee, CA Real Estate for Sale

The differences between Fractional Ownership and Timeshare Ownership

The differences between Fractional Ownership and Timeshare Ownership

December 9, 2015 By Laura Allen, Broker Associate, Tahoe Real Estate Agent, CA RE 01473598 | 530-414-1260

The differences between Fractional Ownership and Timeshare Ownership

The differences between Fractional Ownership and Timeshare OwnershipA common question home and condo buyers have in the North Lake Tahoe real estate market is what are the differences between Fractional Ownership and Timeshare Ownership?

While both are forms of “shared ownership” there are some significant differences between the two types.

Since both Fractional Ownership and Timeshare Ownership are both considered “shared ownership”, what are the differences between Fractional Ownership and Timeshare Ownership?

Fractional shared ownership verses Timeshare shared ownership

In the greater Truckee and North Lake Tahoe area here are some of the basic ownership differences between the two:

Fractional Ownership Timeshare Ownership
Deeded Title Yes – recorded with county assessor No – title to property is held with the general operating partner/developer
Individual Assessor Parcel Number (APN) Yes – each share in a property comes with its own APN (Each property is assigned an APN by the relevant county in California). No – While each condo, or home in the development may have a specific APN, there are not individual APN’s assigned to each owner.
Title Company Yes – Buyers can use a title company to ensure clear title/title insurance to the property and proper recording No – Since there is no individual APN number the option to use a title company to transfer ownership is not possible.
Equity Ownership Yes – The value of your share should move up and down with the current market conditions/value of the property. No – Buyers are purchasing the right to use the property at a specific time each year and the re-sale value of the share is not necessarily tied to current market conditions/value of the property.
Value Fair Market Value – Market value of the property is based on recent, similar sales of shares in the complex and the over-all real estate market in that area.  Fair Market Value for the fractional share does have a basis on the actual over-all property value. Private Market Makers – Market value is established by a third party (private market maker).  It is often a fraction of what a buyer paid for the share due to high marketing costs and a limited market for re-sale.  Typically it is not tied back to the price new shares are being offered for sale in the development, or the fair market value of the property.
Re-Sale Yes – Open market just like selling any other property.  Can list with a real estate agent/broker and place the property for sale in the Multiple Listing Service (MLS). Yes – Limited to either the developer/business owner, or specialty company that has chosen to make a market in the specific development.  Typically not available for MLS*.
 
Costs Yes – In addition to your annual property tax bill, fractional owners typically have a monthly home owners association (HOA) fee, along with periodic assessments.

Fractional ownership tends to be more expensive because of the limited number of owners in a property.  Tip – make sure the HOA fees cover the cost of unit cleaning and doesn’t come as a separate charge so you are properly comparing HOA fees between the different developments.

Yes – Timeshare owners can expect an annual maintenance/assessment fee.  Depending on the development, you may also have a separate tax bill for your share of property taxes, so ask when you are buying what is included in your annual assessment.  You may also have periodic assessments to improve the property.

Timeshare ownership tends to be less expensive than fractional ownership because of the large number of owners.

Number of Owners per Unit Limited/Small – Fractional ownership tends to have a smaller group of owners per unit than timeshare.  Fractional ownership can be as small as 2 (1/2 ownership) owners to as many as 17 owners (1/17 ownership) in the North Lake Tahoe-Truckee area Large – Timeshare ownership tends to have a much larger group of owners/users as many as 52 owners per unit (1 owner per week) in the North Lake Tahoe-Truckee area
Size of Complex Limited/Smaller – Typically less than 50 units in a complex, but any size is possible. Larger – Typically more than 100 units in a complex, but any size is possible.
Selection of Week(s) of Use Flexible – Typically owners are on a rotation schedule and they get flexibility on what weeks they will use each year. Fixed week(s) of use a year.  You know when you’ll get to use your week(s) each year.
Location Specific Location – The benefit of fractional ownership is getting more time in a specific location.  While the option to exchange weeks of use through an exchange organization may be possible, fractional ownership is about the location of the property. Variety of Locations – While timeshare owners are buying into a specific location and time of year to use the property most come with the option to use their time in other developer/sister properties giving the timeshare owner flexibility in the destination.
Property Exchange Options Possible – Some fractional share ownership properties offer owners the ability to exchange/rent their weeks of use with other premier luxury destinations and/or developer affiliated properties. Most Likely -Some timeshare ownership properties/programs offer owners the ability to exchange/rent their week(s) of use with other premier luxury destinations and/or developer – affiliated properties, or with other timeshare organizations.
Rental of your week(s) of Use Depends – Depending on the development, some properties may, or may not allow you to rent out your weeks of use. Depends – Depending on the development some properties may, or may not allow you to rent out your weeks of use.
Pets Possible | Not Allowed – Depending on the development, some properties will allow pets (non-service animals). Possible | Not Allowed – Typically pets (non-service animals) are not allowed.

* As a note in the Tahoe Sierra Multiple Listing Service (TSMLS), which covers North Lake Tahoe – Kings Beach, Tahoe Vista, Carnelian Bay, Tahoe City, Homewood, Tahoma and the greater Truckee area, when I searched for Time Share listings for sale, since 2006, there were only two properties that had been listed for sale indicating this is not a popular, or traditional method for selling timeshares in the greater North Lake Tahoe-Truckee area.  You may find different results for the Incline, NV, or South Lake Tahoe CA-NV areas, which are covered by a different Multiple Listing Services.

Title: 

Fractional Ownership – Is a deeded purchase and comes with a specific California County Assessor Parcel Number (APN) that is actually recorded at the county when ownership changes between individuals.  Owners have a real equity stake in the property and are responsible for their own property taxes.  If the over-all value of the property goes up or down, so does the value of the share they own.

Timeshare Ownership – does not come with an APN number.  Owners purchase a right to use specific week(s), but equity (actual real estate) ownership is not given to the owner and there is no deeded title of the interest purchased.  The title to the property is held with the principal/developer owner, not the individual week owner.

Title Company | Insurance – Escrow Company

Fractional Ownership – Most real estate agents will include in the purchase contract the use of an escrow company and title company that includes title insurance to ensure that the property is transferred to the new owner that the property is being delivered free and clear of any encumbrances, liens, or anything that could cloud title.  In the future should an item come up that the title company did not show up in their original title search the new owner has an insurance policy to deal with any unknown problem that may have been missed in the future.

The title company will also make sure that property recording of the change of ownership is recorded with the county recorder that the property is located in.

Timeshare Ownership – The purchase of timeshare ownership does not involve a title, or escrow company.  An escrow company may be used to hold funds for the third parties, but typically the purchase is handled all in-house.

Re-Sale:

Fractional Ownership – Similar to whole ownership, your fractional share comes with its own APN number and it can be marketed and re-sold through a real estate broker out on the open market.  Title and escrow are the same process as if you were selling a whole home, or whole condo.  You will often find fractional ownership shares for sale on the mega real estate websites.  The demand for shared ownership may be limited depending on your local market conditions.

Timeshare Ownership – Selling is often limited to either the principal/developer and/or their in-house re-sale program, or to a specialty timeshare exchange group that makes a market in your timeshare development.  If there is a resale market for your timeshare development, expect to sell your timeshare at a fraction of your original cost due to the high costs of marketing/selling.  Your timeshare development may also charge a transfer fee.  You typically will not find timeshares for sale on the mega real estate websites.  The demand for shared ownership may be limited depending on your local market conditions and the sales|re-sales structure of the development.

Annual Costs:

Fractional Ownership – Expect to pay a monthly fee, along with a cleaning charge for each owner use if it is not already included in your monthly fee.  Expect the possibility of period assessments for improvements, or renovations.  In additional to these on-going expenses you’ll also have your individual property tax that the state/county will bill you on a semi-annual basis.

Timeshare Ownership – Expect to pay an annual fee and always ask if that fee is inclusive of the property taxes that may be due on the property, otherwise there may be another annual expense.  Periodic special assessments may be necessary for major improvements, so be prepared for that possibility.  Each timeshare ownership development is different, but timeshare owners can expect to pay some type of fee annually even if you don’t use your week(s) of use.

Benefits and Disadvantage of General Shared Ownership

Benefits – Advantages Disadvantages
Professional Management Ease of ownership as someone else takes care of the day-to-day and long-term care of the property Additional cost for professional management.
Limited Use Fractional ownership typically provides enough week(s) of use to satisfy an owners’ use demands. No full-time occupancy, or large blocks of high-season usage time (no one gets all summer, or all winter weeks of use) unless you are buying a specific week(s) of use.
Cost Typically the buy-in is a fraction of the value of the property with the benefit of being able to use the entire property and complex. On-going costs whether you use the property or not.  Costs may be more than what you would choose to do as an individual owner as the costs typically include for long-term maintenance, replacement, reserves, and professional management fees.  Costs also tend to go up each year for inflation.
Re-Sale Fractional ownership or timeshare ownership is local.  It may represent a small or large portion of any specific community/real estate market sales.  Talk to a local real estate professional about the complex, property, and/or local real estate market conditions before buying, or selling. Depending on the local real estate market conditions the re-sale of fractional, and/or timeshare ownership may have limit appeal, or demand for that product.  Talk to a local real estate professional about the complex, property, and/or local real estate market conditions before buying, or selling.

 

There are many similarities between Fractional Ownership and Timeshare Ownership, but there are also significant differences.  The Differences between Fractional Ownership and Timeshare Ownership and choosing the right one will be based upon your individual needs.

Have more questions?  Call me 530.414.1260!

North Shore Lake Tahoe Fractional Share Condo Developments

Sweetbriar, 8000|8004 North Lake Blvd., Kings Beach, CA 96143

Tonopalo, 6750 North Lake Blvd., Tahoe Vista, CA 96148

Fractional Shares for Sale in North Lake Tahoe (condos, homes, Tahoe City, North Shore and West Shore)

Greater Truckee Area Fractional Share Condo|Home Developments

  • Old Greenwood Fractional Shares
  • Northstar Homes and Condos (Northstar Village | Ritz-Carlton Highlands | Mountainside)
  • Northstar Club (Condos)

Olympic Valley |Squaw Valley Fractional Share Condo|Home Developments

This document is not intended to provide legal advice.  All legal questions should be directed to a California real estate attorney.

Want more home buying options?  Something other than fractional ownership. Lake Tahoe, California homes for sale here:

Want to see what condos are for sale in Lake Tahoe? Here are the current listings:

  • Tahoe City Homes for Sale
  • Tahoe City Condos for Sale
  • Tahoe City Lakefront Homes for Sale
  • Lake Tahoe Lakefront Homes for Sale
  • North Shore Lake Tahoe Homes for Sale
  • West Shore Lake Tahoe Homes for Sale

For all of your Tahoe real estate needs –

Laura A. Allen | 530.414.1260  | Laura@TahoeLaura.com
BROKER ASSOCIATE, Tahoe Real Estate Agent
CalRE# 01473598
Coldwell Banker, Tahoe City, CA CalRE#01908304

All information is deemed reliable, but is subject to change, and/or correction without notice.

The Differences between Fractional Ownership and Timeshare Ownership

Search this Site!

Property Search Account Login

Search Communities, Condos, and Neighborhoods

Lake Tahoe Lakefronts

Lake Tahoe Homes

Lake Tahoe Condos

North Shore Homes

West Shore Homes

North Shore Condos

West Shore Condos

Tahoe Donner Homes

Tahoe Donner Condos

Truckee Condos

Truckee Homes

*********************

Agate Bay

Agate Bay Homes

Alpine Manor Condos

Alpine Meadows Homes

Alpine Meadows Condos

Alpine Peaks

Alpine Place -Clock Tower

Alpine Place No 2 Homeowners

Aspen Grove Condos

Aspens Olympic Valley

Aspen Leaf at Palisades Condos

Bear Creek Homes

Bear Meadows Condos

The Boulders Condos

Boulders Residences at Mountainside Townhouses

The Boulders

Brockway Shores Townhouses

Brockway Springs Condos and Homes

Brockway Springs Condos

Buckhorn Ridge Homes

Cambridge Estates

Carnelian Bay Homes

Carnelian Bay Condos

Carnelian Woods Condos

Cedar Flat Homes

Cedar Point Condos

Cedar Shores

Chamberland Homes

Chamberlands Beach & Mt Club

Chambers Landing Condos

Chateau Chamonix Condos

Chinquapin Condos

Christy Hill Condos

Constellation at Northstar Condos (Ritz-Carlton)

Devonshire Estates Homes

Dollar Point Homes

Dollar Hill I Condos

Dollar Hill II Condos

Donner Lake Homes

Donner Lake Lakefront Homes

Donner Lake Condos

Donner Pines West Condos

Donner Lake Village

Elkhorn Ridge Homes

Everline Resort and Spa Condos

Fleur du Lac Estates Condos

The Franciscan Lakeside Lodge Condos

Fulton Acres Homes

Glenridge Park

Glenshire

Gold Bend Condos

Granlibakken Condos

Gray’s Crossing Homes

Gray’s Crossing Townhouses

Heratage Cove Condos

Hidden Meadows Condos

Highlands Homes

Homewood Homes

Homewood Condos

Home Run Trail Townhomes

Indian Hills Condos

Juniper Creek Ranch Homes

Juniper Hills Homes

Kailua Park Homes

Kings Beach Homes

Kings Beach Condos

Kings Run Condos

Kingswood Estates Homes

Kingswood West Homes

Kingswood Village Condos

Lahontan

Lake Forest Glen Condos

Lakeside and Sierra Terrace Condos

Lake Tahoe Homes

Lake Tahoe Lakefront Homes

Lake Tahoe Lakefront Homes Pier

Lake Tahoe Condos

Lake Tahoe Condos in a Lakefront Complex

Lake Tahoe Condos – North Shore

Lake Tahoe Condos – West Shore

Lake Tahoe Park HOA Homes

Luxury Homes Lake Tahoe

Luxury Condos Lake Tahoe

Luxury Homes Truckee

Luxury Condos Truckee

Martis Camp Homes

McKinney Shores

The Meadows Homes

Meeks Bay Homes

Moana Circle

The Northshore Condominiums

North Shore Lake Tahoe Homes

North Shore Lake Tahoe Lakefront Homes

North Shore Lake Tahoe Condos

North Lake Tahoe Homes

North Lake Tahoe Lakefront Homes

North Lake Tahoe Condos

Northstar Property Owners Association NPOA

Northstar Homes

Northstar Condos

Northstar Village Condos (NSV)

NSV- Big Horn Condos – 7001 Northstar Dr

NSV- Catamount Condos – 8001 Northstar Dr

NSV- Great Bear Lodge Condos -5001 Northstar Dr

NSV- Iron Horse North Condos – 3001 Northstar Dr

NSV- Iron Horse South Condos – 4001 Northstar Dr

NSV- One Village Place Condos – 9001 Northstar Dr

NSV- Northstar Lodge – 970 Northstar Drive

NSV- Original Condos 2000 North Village Dr

NSV – Village Walk Townhomes

Northstar Residences – Northstar Club Condo Shares

Old Greenwood Homes

Old Greenwood Condos

Old Greenwood Fractional Shares

Olympic Valley Homes

Olympic Valley Condos

Village at Palisades Tahoe

Palisades Tahoe Lodge Condos

Palisades at Olympic Valley

Panorama Estates

Pine Cove Cottages Cottages

Pineland Homes

Pinyon Creek Townhouses

Ponderosa Palisades Townhouses

Ridgewood Homes

Ritz Carlton Highlands – Constellation and Home Run Condos

Ritz Carlton Highlands Fractional Shares Condos

River Run Homes

River Run Condos

River View Townhomes

Rocky Ridge Condos

Rubicon Glen Homes

Rubicon Bay Homes

Rubicon Properties Homes

Schaffer’s Mill Homes

Schaffer’s Mill Townhomes

Sierra Meadows Homes

Ski Trail Condos

Skyland Homes

Soda Springs Homes

Sonoma Pines Homes

Spring Creek Homes and Lofts Townhouses

Squaw Peak – Shirley Canyon Condos

Squaw Ridge Condos

Squaw Valley Meadows

Squaw Valley North Condos

Tram Condos

St Francis Lakeside Condos

St Michaels Woods Homes

Star Harbor Condo

Stellar Townhouses

Stoneridge Condos

Stonewood Condos

Sugarpine Lakeside Condos

Sugarpine Parkside Condos

Sunnyside Homes

Sweetbriar Fractional Share Condos

Tahoe Beachfront Condos

Tahoe Homes

Tahoe Condos|Townhomes

Tahoe City Homes

Tahoe City Lakefront Homes

Tahoe City Lakefront Homes – North Shore

Tahoe City Lakefront Homes – West Shore

Tahoe City Homes – North Shore

Tahoe City Homes – West Shore

Tahoe City Condos

Tahoe City Condos – North Shore

Tahoe City Condos – West Shore

Tahoe City Condos in a Lakefront Complex

Tahoe City Marina Boat Slips

Tahoe Cedars Homes

Tahoe Donner Real Estate

Tahoe Donner Homes

Tahoe Donner Luxury Homes

Tahoe Donner Condos

Tahoe Donner Golf Club Condos

Tahoe Donner Lodge Condos

Tahoe Donner Ski Bowl Condos

Tahoe Estates Homes

Tahoe Hills Homes

Tahoe Marina Lakefront Condos

Tahoe Marina Estates Homes

Tahoe Park Homes

Tahoe Park HOA Membership Homes

Tahoe Park HOA Neighborhood

Tahoe Pines Homes

Tahoe Sierra Estates Homes

Tahoe Swiss Village Homes

Tahoe Tavern Condos

Tahoe Tavern Heights Homes

Tahoe Vista Homes

Tahoe Vista Condos

212 Tahoe Woods Blvd Condos

Tahoe Woods Homes

Tahoma Homes

Tahoma Condos

Tahoma Meadows Homes

Tahoya Shores Condos

Tavern Inn Condos

Tavern Shores Condos

The Timbers Condos

The Boulders

The Franciscan

The Northshore Condos

The Village at Palisades Tahoe

The Villas 

Developments also are listed by first name without “The” in the name.

Timberland Homes

Tonopalo Fractional Shares Condos

Truckee Homes

Truckee Condos

Truckee Luxury Homes

Truckee Luxury Condos

Truckee River Corridor Homes

Twin Peaks Homes

Valley View Townhomes

Village at Palisades Tahoe Condos

VPT – Bldg 5 – 1750 Village East Road

VPT – Bldg 4 – 1850 Village South Road

VPT – Bldg 3 – 1880 Village South Road 

VPT – Bldg 2 – 1985 Squaw Valley Road

VPT – Bldg 1 – 1995 Squaw Valley Road

The Villas Condos

Vista Pines Homes

Ward Creek Homes

Water’s Edge Condos

Westlake Village Homes

West Shore Lake Tahoe Homes

West Shore Lake Tahoe Lakefront Homes

West Shore Lake Tahoe Condos

West Shore Lake Tahoe Condos Lakefront Complex

Winding Creek Homes

Woodvista Condos

Village Walk Townhomes

Winter Creek Homes

Fair Housing | Privacy Policy

Laura Allen | Broker Associate

CalRE# 01473598 | 530.414.1260

Coldwell Banker Realty

475 N Lake Blvd, Tahoe City, CA 96145

Copyright © 2025 | Laura Allen | Broker Associate | CalRE# 01473598 | www.TahoeLauraRealEstate.com | 530-414-1260 Phone/Text | Laura@TahoeLaura.com Coldwell Banker Realty | 475 N. Lake Blvd., Tahoe City, CA 96145 | Log in

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish.Accept Read More
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are as essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
SAVE & ACCEPT