No matter where your shared ownership development is located, selecting the right legal structure from the start is crucial for long-term success. The structure must be robust, flexible, and efficient, streamlining resort operations and maximizing profitability.

Whether it's a simple fixed-week timeshare model, a quarter-share fractional property, or a more complex Private Residence Club, the quality of the structure should be central to strategic and financial planning. Here are key considerations for creating the most effective structure:

Is it easy to administer, enabling you to concentrate on sales and marketing?

Can it operate across multiple jurisdictions, supporting both horizontal and vertical growth?

Can it adapt to various product offerings, such as fixed week/fixed apartment, fixed week/floating apartment, split weeks, points, fractions, PRCs, and more?

Will sales closure costs be minimized, making it easier for buyers to say ‘yes’?

Can property quality standards be more easily maintained over the long term?

That's where CCTL steps in..

With over 30 years of experience designing custom legal structures for more than 300 resort developments worldwide, CCTL offers clients unmatched expertise, delivering numerous benefits, including:

A proven system that can be easily and cost-effectively implemented internationally.

Enhancing the sales process by providing high levels of consumer protection.

Simplifying the management of an exit strategy when selling all or part of your business.

Recognized by top industry service providers, including exchange companies and banks.

The sales closure process is straightforward and cost-effective.

A simple process for issuing owner/member certificates, handling upgrades, and managing re-sales.

Quicker repossession process for delinquent maintenance fees.

More cost-effective and enhances inventory recycling efficiency.

Property quality standards are more easily maintained over time.

Ensures agreements are established upfront before funds are distributed, preventing future disagreements and disputes.

Dividing a property into fractions can be complex and costly, with local legislation sometimes lacking provisions for this. CCTL offers various structures to simplify the process of developing a fractional ownership model, making it:

Simpler to manage over the long term.

More cost-effective to operate.

When an owner decides to sell their fraction, the associated costs and taxes are minimal.

With our extensive experience in the international fractional market, we help you choose the best option for your needs. Everything we do is customized to suit you. From escrow, stakeholder, and trustee services to financial services and systems integration, CCTL offers tailor-made solutions to support your business goals.

"With the CCTL fractional product, a property is typically divided into fractions ranging from two to thirteen weeks (quarter-shares). Owners of larger fractions often enjoy fixed week occupancy each year, with the remaining time rotating annually. Fractional structures can be established in perpetuity or for a fixed term, such as 15, 20, or 50 years, depending on the developer's commercial objectives.

"Typically, the legal title to the property being fractioned is held by a company, owned and managed by CCTL as trustee for the benefit of the fractional owners. Owners obtain their fractional title through the trustee, governed by a set of rules and a deed of trust. This provides the same level of protection and security as an individual registered leasehold title.

The country in which the property is located determines the legal title granted to the company. In the UK, this could be a freehold or long leasehold title if the fraction is purchased in perpetuity, or a shorter leasehold title for fractions with a fixed term, such as 10 or 20 years. For fixed-term fractions, a mechanism can be established where, upon the termination of the fixed usage rights, the trustee sells the property and distributes any net proceeds to the fractional owners registered at the time of termination.

The short-term fractional structure

One of the newest offerings is the 'limited life' fraction (e.g., 10 years), also known as the 'Short Term Fractional.' At the end of the usage term, the property is sold on the open market as a whole freehold property. The net proceeds from the sale are distributed among the fractional owners. This concept offers two major advantages for the buyer:

Enjoy a decade of vacation use, saving money on future holidays.

The money invested in the property could potentially generate a return when the project concludes.

The typical fraction length is one to two weeks, with the property likely located in a Mediterranean beach resort where real estate costs are relatively low.