How it works:

In its simplest form, a luxury property is sold as a club membership, divided into segments of 1/4, 1/8, or 1/16. This allows purchasers to enjoy an annual fixed or rotating term of use, along with full access to all amenities. A one-time purchase fee is required to acquire the fractional ownership, in addition to an annual fee that covers property maintenance and amenity costs.

The method of acquiring a fraction can vary based on the property's location and the developer's long-term goals. The most common options include:

A club membership

A deeded interest

Ownership through a company limited by shares or guarantee

The most popular and successful fractional model, based on sales performance, targets consumers seeking annual access to a property with a planned exit. The consumer purchases for a fixed term (e.g., 10 or 15 years), while CCTL holds the legal title to the property in trust on behalf of the fractional owners.

At the end of the fixed term, CCTL facilitates the sale of the entire property on the open market. Once sold, the fractional owner receives their proportionate share of the net proceeds, distributed by CCTL.