<div id="title">Fractionals Defined</div>
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<strong>"What is ’fractional ownership’ in the <em>Club Residences at Aina Nalu</em>?"</strong>
Fractional ownership in the Club Residences at Aina Nalu is a shared 1/6th deeded interest of your choice of one of four floor plans.  Co owners may be strangers, other family members or friends.  A detailed, legal operating agreement for the property spells out the rights of each owner in regards to responsibilities, costs, resale privileges, and other pertinent information about maintaining the property into the future.  Each co–owner shares the cost of maintaining the residence.  Professional management of the property assures each owner a clean, well maintained, and cost effective home to enjoy equally.

<strong>"What is the difference between fractional and timeshare ownership?"</strong>
Many people confuse fractional and timeshare ownership.  There are some common factors between the two structures, primarily:

Timeshares are non–equity based period of usage, (frequently one week).  Fractionals offer an equity based real estate ownership purchase for a period of at least 60 days.

The similarity is in the shared usage in a leisure asset.  The fundamental difference in property is that fractional ownership is an ownership of real estate and not just the right to use a share of time in the property.

With fractional ownership in the Club Residences at Aina Nalu, you own the same two months year after year in a particular residence, knowing exactly what to expect with plenty of flexibility.  Often with timeshares, it can be difficult to reserve your desired usage to fit your schedule.

<strong>"Is fractional ownership right for you?"</strong>
One of the main reasons people own fractionals, even when they can afford the entire purchase, is “the ease of ownership” that comes with having the property professionally managed and maintained for you.  The expense and responsibility of ownership is greatly reduced.  You get the benefits and conveniences of a second home with amenities and services, without the expense and responsibilities of full ownership.  It is hard to justify having the expense of a mortgage, insurance, and taxes for an entire residence that you only use a few weeks or month of each year.  Fractional ownership allows your second home to become a true family vacation destination.  At the same time, you own the deed to the property and you can pass it down to your heirs or sell it as you wish.

<strong>"What if I don’t know the other owners?"</strong>
Few people will know the other owners before purchase.  The ownership structure eliminates the need.  There is no overlap in the calendar dates and there is no need to interact socially with the other owners of your residence.  However, long–term friendships will often develop with owners of other residences for the same months you own.

<strong>"Can family or friends stay?"</strong>
Of course they can!  This is your vacation home, after all, and we hope your friends and family will gather here with you.  If, however, you wish to have guests stay when you are not there, management must be notified.

<strong>"Who manages the property?"</strong>
A property management company will handle all of the day to day tasks including maintenance and accounting, so you get to enjoy your home without having to manage and maintain it yourself.

<strong>"What about maintenance and housekeeping?"</strong>

There will be service periods between occupancy dates.  Minor service periods include replacement or minor repair of the common furnishings, and inspection of the fractional residences to make sure they are prepared and returned to the next owner in proper condition.

Five consecutive days out of each year are set aside for major service periods which may include replacement of major appliances, re–painting, re–carpeting, re–flooring, or upgrading the fractional residences in the future.

Housekeeping is performed bi–weekly to ensure that the residences are kept clean and orderly.

<strong>"What do the ownership dues include and how often do I pay?"</strong>

The ownership dues are paid quarterly and include all utilities, property taxes, insurance, landscaping, maintenance of the swimming pools and common areas, security, internet, and the service fee for the fractional managing agent.

<strong>"Can I sell my deeded interest?"</strong>

Yes.  Deeded fractional interests may be held for generations, in perpetuity, or may be sold, transferred or willed like any other real estate.

<strong>"Once I own my property, can I swap dates with another owner?"</strong>

Absolutely.  Swapping dates can be done between owners of the fractional residences at the discretion of the owners.

<strong>"Can I rent my club residence during my period of ownership when I’m not using it myself?"</strong>

Yes.  As an owner, you can rent your residence utilizing a number of vacation rental companies.

<strong>"How are decisions made among the owners?"</strong>

There is a co–ownership agreement which sets out basic rules and regulations of how the residence is owned and managed.

<strong>"What about damages to the property?"</strong>

Damages beyond normal wear and tear are the responsibility of the occupying owner.  The ownership agreement defines the policies and guidelines for repairing and replacing damaged items.

<strong>"What happens if one of the owners has a mortgage lien, other type of forced lien or judgment against them?"</strong>

If an owner defaults on his/her loan, the lender can foreclose only on that owner’s share without affecting the other co–owner’s interest.  Liens or judgments against one owner will not attach or encumber the fractional interest of any other owner.

<strong>"Can I get financing for my purchase?"</strong>

Fractional real estate can be financed subject to the buyer’s qualifications.  Because of the lower prices available with fractional ownership, many buyers choose to use an existing line of credit or to pay cash.  There is even a way that funds from a retirement account such as an IRA or a 401k can be used to pay for the purchase.

If you would like to learn how you could become an owner of the Club Residences at Aina Nalu, please contact us at:

Direct:  808–661–1161

Or email:
<a href="mailto:jperna13@gmail.com.">Jane Perna</a>

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