Fractional Ownership Law and Legal Definition

Fractional ownership is partial ownership of a property. In this kind of ownership, a property is owned and shared by more than one individual. Such ownership is common with real property. In fractional ownership, the investor owns part of the title and if the value of the asset increases, the share value also increases. A fractional share gives the owners certain privileges, such as a number of days or weeks when they can use the property. Fractional ownership shareholders also share the benefits of the asset such as income sharing.