(MONEY Magazine) – Time sharing -- buying an annual week or two at a resort -- has lost its luster in recent years because of high-pressure sales tactics, poorly managed properties and a lousy secondary market. Now developers are pushing another twist: fractional ownership. You can pick up a quarter share of a two-bedroom, 2 1/2-bath condo in Pennsylvania's Pocono Mountains for about $50,000 -- only three times as much as for a two-week time share. The advantages: you have fewer co-owners to deal with, a lower markup owing to sales expenses (only about 10% to 20% over the underlying real estate value, vs. 35% to 50% for a time share), and a deed to your share of the property, not just a vacation contract, so you can build equity. ) Nevertheless, fractionals have several important drawbacks. You'll pay extra for financing: at the quarter-share villas opened by New Seabury Corp. on Cape Cod, for example, an adjustable-rate mortgage costs you prime plus two percentage points -- pretty standard, except that you start at a high (currently 13.5%) rate rather than at a low (national average: 9.5%) teaser rate. And, as with a time share, you have no control over who else buys into your property at the outset, and little or none later if one of your co-owners sells to someone you don't like. Given these problems, before buying a fractional, pay close attention to: -- Rental policy. Unless you take 13-week vacations, you'll want to rent the property part of the time. Try to find a manager who will rent it for a reasonable fee; some take 50% of the rent for this service. -- Fees. Make sure the fee includes everything you'll need to run the property, including real estate taxes, insurance, utilities, housekeeping, a reserve fund for emergencies, and membership in the resort's recreational facilities. -- Resale value. Find out how much comparable units are selling for on the secondary market, and ask to speak to an ex-owner who has recently sold one.