Which statement describes "fractional interest" ownership?

"Fractional interest" ownership refers to a shared ownership model where multiple individuals or entities hold a specific portion or segment of a property's rights. This type of ownership allows various parties to enjoy a fraction of the total ownership benefits, which can include usage rights, financial stakes, and obligations related to the property.

In this context, it is important to understand the concept of a "bundle of rights" typically associated with property ownership. Ownership is not just about the physical property itself; it consists of various rights, such as the right to use, rent, lease, sell, or modify the property. A fractional interest means that one party holds only a portion of these rights, rather than full, outright ownership. This concept is particularly beneficial in scenarios like vacation home shares or investment groups, where the property is too costly or impractical for a single individual to own entirely.

The other options are not representative of fractional interest ownership. Complete ownership would imply full control over the entire property, which contradicts the essence of fractional ownership. A right that cannot be sold would not provide any financial benefit or incentive, which is contrary to the purpose of fractional ownership as it usually allows for the potential sale of one’s share. Lastly, an interest that includes leases only does