What is fractional ownership of property in South Africa?

Question

MyProperty · Accepted Answer

Fractional ownership refers to shared ownership and usage of a property, often a leisure property, by a group of shareholders. Here’s how it works:

Shared Ownership and Usage

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Ownership: Multiple shareholders own the property together. • Usage: Usage is allocated to shareholders through an ownership usage roster. • Costs: Running costs are divided among shareholders based on their percentage shareholding.

How It Works

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Shareholding: Buyers acquire a percentage shareholding in a company that owns the property, receiving a share certificate. • Usage Allocation: Ownership allows use of the property for a certain number of weeks each year, depending on shareholding. Typically, a 13th shareholding provides 4 weeks of usage annually, on a rotational basis. Fractional ownership is an attractive option for those looking to enjoy a property without the full financial commitment of sole ownership.