Property Ownership

What is a 'fractional ownership' arrangement and how has it been used in Hawaii resort properties?

AA. Ownership of less than a full lot in a subdivision
BB. Co-ownership of a property by multiple parties who share usage time and expenses; used in Hawaii for high-end resort properties as an alternative to timeshares✓ Correct
CC. The state's fractional interest in Native Hawaiian trust lands
DD. A leasehold arrangement with partial ownership of improvements

Explanation

Fractional ownership divides ownership of a property (typically 4–13 shares) among co-owners who share usage time proportionally. Unlike timeshares, owners hold actual title to their fraction. Hawaii resort properties have used fractional ownership to make luxury properties accessible to multiple buyers while sharing maintenance costs.

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