Legal Resource
State Fractional Real Estate Laws
A reference guide for developers, investors, and property owners — all 50 states
How fractional ownership laws work
Back in the 1960s and 70s, some developers became greedy and sold timeshares that didn't exist. The government stepped in and forced all states to adopt timeshare laws to protect consumers.
As you'll see, most states have not drafted separate fractional real estate laws. These states have given authority to their local cities and counties to draft their own rules regarding fractional ownership for developers. Others did adopt specific fractional rules, which you'll find below.
What developers want to know is: How many owners can I have in an individual property before it triggers the timeshare rules? For instance, here in Florida a developer can have 7 people owning a property without triggering the timeshare rules — however, if they add an 8th person, that will trigger the timeshare rules whereby the developer will have to go through the state's timeshare regulations.
Many developers opt to go through the timeshare regulations because they want to have more owners per property than the state's threshold allows. This is not all that difficult in most states — you fill out forms explaining your project and how you wish to design and build it. The state will then confer with county officials to be sure they are all on board. This is normally done by the developer's attorney. It can take some time and money, but larger developers think it's well worth it to have the project the way they want it.
Look up your state
Select a state to see whether it has specific fractional ownership thresholds or defers to local city and county regulations. Every state includes a direct link and phone number for the Secretary of State.
Select a state above to see its fractional ownership rules.
Important Disclaimer: This guide is for general informational purposes only and does not constitute legal advice. Fractional ownership laws change frequently. The thresholds shown are based on our research and 28 years of industry experience, but we advise in all cases that developers double-check with a licensed real estate attorney in the applicable state before proceeding with any project.
For states that defer to local authority, contact the county clerk or local planning department where the property is located. The Secretary of State links and phone numbers provided are a good starting point for verifying current timeshare and fractional ownership regulations.
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