Terms of Service

Last updated on June 23, 2023

  1. Introduction

These Terms of Use (these "Terms") are a legally binding agreement between you and Fractional Homes, Inc., doing business as Fractional ("Fractional," "we," or "us"). We offer a software platform and other services that help connect owners of real property with investors seeking to co-own and co-purchase that real property (the "Property Services") through our websites, including our website located at fractional.app (collectively, our "Websites") and application program interfaces and other services we make to interact with you through social networks (such social networks, "Social Networks"; our services that interact with Social Networks, "Social Network Services"; our Websites, our Social Network Services, our Property Services and our other services are collectively our "Services").

Certain features of the Services may be subject to additional terms and conditions which will be posted on the Services in connection with those features or provided to you in writing (including by email). All such additional written terms and conditions are incorporated by reference into these Terms. If there is a conflict between these Terms and such additional written terms and conditions, those additional terms and conditions will control.

By using the Services (including interacting with Fractional through Social Networks), you acknowledge that you have read and understand these Terms and agree to be bound by these Terms (on behalf of yourself or the entity that you represent). By using the Services, you acknowledge that you have the required capacity to enter into these Terms and that you are at least 18 years old. If you do not agree with these Terms, do not access or use the Services.

  1. Changes to Terms of Use

We may, in our sole discretion and without prior notice, modify these Terms at any time. If we do so, we will notify you by posting the modified Terms at fractional.app/terms and/or through other communications to you. You should review these Terms and our other policies (including our Privacy Policy available at fractional.app/privacy) periodically to be aware of any changes. By using the Services after changes to these Terms, you are agreeing to be bound by the changes.

  1. Eligibility

You may only use the Services if you (1) are 18 years or older, (2) are a legal resident of the United States, (3) are capable of forming a binding contract, (4) have not been previously suspended from the Services, and (5) are not barred from using the Services under applicable law. If you are entering into these Terms as an entity, then you must have the legal authority to accept these Terms on that entity’s behalf, in which case “you” will mean that entity.

  1. Registration and Accounts

To access and use the Services, you will have to create an account with Fractional (an "Account"). Currently, you can create your Account by giving us certain information at fractional.app/signup. You must provide us with accurate, complete, and up-to-date information for your Account. If you do not maintain current information with us, we may have to suspend or terminate your Account.

You acknowledge that all information you submit to us is accurate and you will update that information as appropriate. You may submit a request to delete your Account at any time by emailing us at [email protected] or by following other instructions posted on our Websites, if any. However, no Account deletion requests can be completed until you have: (1) successfully transferred and assigned all your interests in the Property LLC in accordance with Article 8 of the Operating Agreement (defined below); (2) been released from all your obligations and liabilities under the Operating Agreement; and (3) withdrawn your remaining funds from the Deposit Account (defined below).

By creating an Account, you are agreeing to receive electronic communications from Fractional, including through Social Networks and by email, and that any notices or disclosures that are sent to you electronically are sufficient written legal notice under this Agreement and as may be required by applicable law. Our communications to you may include information about your Account, the Services, and promotional information, such as contests, surveys, offers, and other relevant information. If you wish to unsubscribe to all or certain electronic communications you receive from Fractional, please follow the instructions for how to unsubscribe in the electronic communications.

  1. Identity Verification

In order to use the Services, you agree to provide us with the information we request for the purposes of verifying your identity and detecting potential money laundering, terrorist financing, fraud or other financial crimes and permit us to keep a record of such information. You will need to complete certain verification procedures before you are permitted to use the Services. Your access to the Services and the limits that apply to your use of the Services may be altered as a result of information collected about you on an ongoing basis. The information we request may include certain personal information, including, but not limited to, your name, address, telephone number, email address, date of birth, taxpayer identification number, a government identification, and information regarding your bank account (such as the name of the bank, the account type, routing number, and account number). In providing us with this or any other information that may be required, you confirm that the information is accurate and authentic. You agree to keep us updated if any of the information you provide to us changes. You authorize us to make inquiries, whether directly or through our third-party service provider Footprint Inc (“Footprint”), that we consider necessary to verify your identity or protect you and/or us against fraud or other financial crime, and to take action we reasonably deem necessary based on the results of such inquiries. When we carry out these inquiries, you acknowledge and agree that your personal information may be disclosed to credit reference and fraud prevention or financial crime agencies and that these agencies may respond to our inquiries in full. See our Privacy Policy at fractional.app/privacy for more information on how we treat your data.

  1. Bank Account

Once an offer to purchase a property is accepted by the seller and the due diligence process on the property has been completed, Fractional will form a limited liability company for the purpose of facilitating co-ownership of the property (“Property LLC”) subject to an operating agreement to be entered into by you, Fractional and each of the co-owners of the Property LLC (“Operating Agreement”). We have opened: (i) a custodial bank account at First Internet Bank of Indiana member FDIC (“Bank Provider”) for Property LLC and other similar entities managed by us (“Property Custodial Account”); and (ii) a custodial account at Bank Provider on you and other investors’ behalf for the sole purpose of funding the Property Custodial Account and receiving any distributions from the Property Custodial Account (“Deposit Custodial Account”). The Property Custodial Account and the Deposit Custodial Account (collectively, the “Custodial Accounts”) are solely for investment or business purposes, and shall not be used for personal, family, or household purposes.

We are not a bank, and we have no legal interest in or ownership of the funds in the Custodial Accounts. We have partnered with Bank Provider to provide to you depository, payment and money movement services (the “Banking Services”). To that end, Bank Provider has established the Custodial Accounts for the benefit of Fractional’s customers, including Property LLC, other similar entities, you and other individual investors. Bank Provider will hold title to all funds deposited in the Custodial Accounts for the proportionate benefit of the Property LLC and similar property entities, with respect to the Property Custodial Account, and you and other similar Fractional customers, with respect to the Deposit Custodial Account, as shown on the records maintained by Fractional. You understand and acknowledge that the funds transferred into the Custodial Accounts may be pooled and commingled with funds of Fractional and other Fractional customers. You further acknowledge that Bank Provider is an intended third party beneficiary of these Terms. Subject to these Terms and the Bank Provider agreement (located at https://increase.com/first-internet-bank-terms) that we agreed to in opening the Custodial Accounts (the “Bank Provider Agreement”), Bank is willing to open the Custodial Accounts and provide the Banking Services. You will not be charged any fees for the Banking Services.

By agreeing to these Terms, you also appoint Fractional to act as your agent for the purpose of the fulfillment of the Banking Services, including without limitation, to: (i) open the Custodial Accounts; (ii) receive and provide notices and communications on your behalf; (iii) maintain records of the Custodial Accounts and transactions on the Custodial Accounts; (iv) authorize and direct the Bank Provider to debit and credit accounts at other financial institutions; (v) collect the information necessary to establish your interests in the Custodial Accounts; (vi) disclose such information to the Bank Provider; and (vii) take any other action that Fractional deems necessary or desirable to carry out the transactions constituting the Banking Services. You hereby authorize the Bank Provider to follow the instructions of Fractional (whether electronic, written or oral) and agree that the Bank Provider may completely rely on such instructions without further investigation or authorization.

You also acknowledge and agree that Fractional provides certain services to and acts on behalf of the Bank Provider, including without limitation marketing Banking Services, delivering communications on behalf of the Bank Provider, collecting information from customers and authorizing, authenticating and completing transactions. You acknowledge and expressly agree to Fractional acting as agent for you and the Property LLC and as the agent for the Bank Provider for purposes of these Terms and the Banking Services. You hereby waive any conflict resulting from such relationships.

THE BANKING SERVICES ARE PROVIDED "AS IS" AND WITHOUT ANY REPRESENTATION OR WARRANTY, WHETHER EXPRESS, IMPLIED OR STATUTORY. FRACTIONAL AND BANKING PROVIDER SPECIFICALLY DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT. Neither Banking Provider nor Fractional guarantees continuous, uninterrupted or secure access to the Banking Services. Fractional and Banking Provider will make reasonable efforts to ensure that requests for electronic transactions are processed in a timely manner but makes no representations or warranties regarding the amount of time needed to complete processing because the Banking Services are dependent upon many factors outside of Fractional and Banking Provider’s control, such as delays in the banking system or the U.S. or international mail service.

Increase Technologies Inc. (“Increase”) is a backend software provider that provides a banking API to help you communicate with the Bank Provider to manage and access your interests in the Custodial Accounts. By agreeing to our Terms and Privacy Policy, you also agree to Increase’s terms and policies below:

Deposits can be made to the Deposit Custodial Account by ACH or wire transfers only. You authorize us to electronically debit and credit your interests in the Deposit Custodial Account (when and as applicable) to:

  • Fund the Property Custodial Account;
  • Receive any distributions from the Property Custodial Account; and
  • Transfer funds into your Connected Account.

Before you can make any withdrawals from the Deposit Custodial Account, you must connect your personal bank account to your Account (“Connected Account”). When you connect your Connected Account to your Account, we will ask you to verify ownership of your Connected Account. You authorize one of our third-party service providers to use your Connected Account credentials to retrieve account statement information.

  1. Fees

You can find information about our fees by reviewing your Operating Agreement, logging into your Account or clicking this link. We accept payment for our fees via ACH debit from the Property Custodial Account. By creating an Account and agreeing to these Terms, you authorize us to debit the Property Custodial Account to pay our fees.

  1. Changes to Services

We reserve the right, in our sole and absolute discretion, to change, reformulate, suspend, discontinue, or terminate any of the Services at any time, without prior notice.

  1. Content on the Services; Social Network Terms

All materials provided on the Services, including but not limited to information, documents, products, logos, graphics, sounds, images, compilations, content and services, are provided either by Fractional or by respective third-party users, authors, developers or vendors and are the copyrighted works of Fractional and/or such third-party providers (or is permitted/licensed to be used by such third party providers), unless specifically provided otherwise. Except where expressly provided otherwise by Fractional, nothing on the Services shall be construed to confer any license or ownership right in or to the materials provided through the Services, under any of Fractional’s intellectual property rights, whether by estoppel, implication, or otherwise. Subject to your compliance with these Terms, Fractional grants you a limited, non-exclusive, non-transferable, non-sublicensable license to access and view the Services solely in connection with your permitted use of the Services. If you use a Social Network in connection with the Services, you shall comply with all terms of use and privacy policies to such Social Network.

  1. User Content

For purposes of these Terms: (a) "Content" means text, graphics, images, music, software, audio, video, works of authorship of any kind, and information or other materials that are posted, generated, provided or otherwise made available through the Services by Fractional; and (b) "User Content" means any Content that you or other users provide to be made available through the Services. Content includes without limitation User Content.

Fractional does not claim any ownership rights in any User Content that you make available through the Services and nothing in these Terms will be deemed to restrict any rights that you may have to use and exploit your User Content. Subject to the foregoing, Fractional and its licensors exclusively own all right, title and interest in and to the Services and Content, including all associated intellectual property rights. You acknowledge that the Services and Content are protected by copyright, trademark, and other laws of the United States and foreign countries. You agree not to remove, alter or obscure any copyright, trademark, service mark or other proprietary rights notices incorporated in or accompanying the Services.

By making any User Content available through the Services, you hereby grant to Fractional and each of its affiliates a non-exclusive, transferable, sublicensable, worldwide, royalty-free license to use, copy, modify, create derivative works based upon, publicly display, publicly perform and distribute your User Content in connection with operating and providing the Services and Content to you and to other users.

You are solely responsible for all your User Content. You represent and warrant that you own all your User Content or you have all rights that are necessary to grant us the license rights in your User Content under these Terms. You also represent and warrant that neither your User Content, nor your use and provision of your User Content to be made available through the Services, nor any use of your User Content by Fractional or other users on or through the Services will infringe, misappropriate or violate a third party's intellectual property rights, or rights of publicity or privacy, or result in the violation of any applicable law or regulation.

You can remove your User Content by specifically deleting it. However, in certain instances, some of your User Content may not be completely removed and copies of your User Content may continue to exist on the Services. Neither Fractional nor its affiliates are responsible or liable for the removal or deletion of (or the failure to remove or delete) any of your User Content.

  1. Copyright Violations

Fractional respects the intellectual property of others and asks that users of our Websites do the same. In connection with our Websites, we have adopted and implemented a policy respecting copyright law that provides for the removal of any infringing materials and for the termination, in appropriate circumstances, of users of our online Websites who are repeat infringers of intellectual property rights, including copyrights. If you believe that one of our users is, through the use of our Websites, unlawfully infringing the copyright(s) in a work, and wish to have the allegedly infringing material removed, the following information in the form of a written notification (pursuant to 17 U.S.C. § 512(c)) must be provided to our designated copyright agent:

  • your physical or electronic signature;
  • identification of the copyrighted work(s) that you claim to have been infringed;
  • identification of the material on our Websites that you claim is infringing and that you request us to remove;
  • sufficient information to permit us to locate such material;
  • your address, telephone number, and e-mail address;
  • a statement that you have a good faith belief that use of the objectionable material is not authorized by the copyright owner, its agent, or under the law; and
  • a statement that the information in the notification is accurate, and under penalty of perjury, that you are either the owner of the copyright that has allegedly been infringed or that you are authorized to act on behalf of the copyright owner.

Please note that, pursuant to 17 U.S.C. § 512(f), any misrepresentation of material fact (falsities) in a written notification automatically subjects the complaining party to liability for any damages, costs and attorney's fees incurred by us in connection with the written notification and allegation of copyright infringement.

Pursuant to the Digital Millennium Copyright Act, 17 U.S.C. § 512(c) ("DMCA"), Fractional’s designated copyright agent for notice of claims of copyrights infringement can be contacted at the addresses below.

DMCA Agent, c/o

Fractional Homes, Inc.

188 King St PH5 San Francisco, CA

[email protected]

650-204-0689

You acknowledge, accept and agree that if we receive a notice of a claim of copyright infringement, we may immediately remove the identified materials from our Websites without liability to you or any other party and that the claims of the complaining party will be referred to the United States Copyright Office for adjudication as provided in the DMCA.

Please note that this procedure is exclusively for notifying Fractional and its affiliates that your copyrighted material has been infringed. The preceding requirements are intended to comply with our rights and obligations under the DMCA, including 17 U.S.C. §512(c), but do not constitute legal advice. It may be advisable to contact an attorney regarding your rights and obligations under the DMCA and other applicable laws. Allegations that other intellectual property rights are being infringed should be sent to [email protected]. Fractional may, in its sole discretion, delete the profile and posts of those who are accused of copyright infringement or other intellectual property rights.

  1. User Conduct

Fractional imposes certain restrictions on your permissible use of the Services. You are prohibited from violating or attempting to violate any security features of the Services, including, without limitation, (a) accessing content or data not intended for you, or logging onto a server or account that you are not authorized to access; (b) attempting to probe, scan, or test the vulnerability of the Services or any associated system or network, or to breach security or authentication measures without proper authorization; (c) interfering or attempting to interfere with service to any user, host, or network, including, without limitation, by means of submitting a virus to the Services, overloading, "flooding," "spamming," "mail bombing," or "crashing;" (d) using the Services to send unsolicited e-mail, including, without limitation, promotions, or advertisements for products or services; (e) forging any TCP/IP packet header or any part of the header information in any email or in any posting using the Services; (f) attempting to modify, reverse-engineer, decompile, disassemble, or otherwise reduce or attempt to reduce to a human-perceivable form any of the source code used by Fractional in providing the Services; or (g) using the Services in connection with the violation of any third party's intellectual property or proprietary rights, including copyrights, trademarks, or patents. Any violation of system or network security may subject you to civil and/or criminal liability. You shall not post, upload, publish, submit or transmit any Content, or otherwise conduct yourself in connection with the Services in a way, that: (a) infringes, misappropriates or violates a third party's patent, copyright, trademark, trade secret, moral rights or other intellectual property rights, or rights of publicity or privacy; (b) violates, or encourages any conduct that would violate, any applicable law or regulation or would subject Fractional or any of its affiliates to civil liability; (c) is fraudulent, false, misleading or deceptive; (d) is defamatory, obscene, pornographic, vulgar, or offensive; (e) promotes discrimination, bigotry, racism, hatred, harassment, or harm against any individual or group; (f) is violent or threatening or promotes violence or actions that are threatening to any person or entity; or (g) promotes illegal or harmful activities or substances. You shall not use, display, mirror or frame the Services, or any individual element within the Services, the names, trademarks, logos, or other proprietary information of Fractional or any of its affiliates, or the layout and design of any page or form contained on a page on the Services, without Fractional's express written consent. You shall not attempt to access or search the Services or Content or download Content from the Services through the use of any engine, software, tool, agent, device or mechanism (including spiders, robots, crawlers, data mining tools or the like) other than the software and/or search utilities provided by Fractional or other generally available third-party web browsers. You shall not send any unsolicited or unauthorized advertising, promotional materials, email, junk mail, spam, chain letters or other form of solicitation with the Services. You shall not use any meta tags or other hidden text or metadata utilizing a trademark, logo, URL or product name of Fractional or any of its affiliates without Fractional’s express written consent. You shall not use the Services or Content, other than User Content, for any commercial purpose or in any manner not permitted by these Terms. You shall not collect or store any personally identifiable information from the Services from other users without their express permission. You shall not impersonate or misrepresent your affiliation with any person or entity. You shall not violate any applicable law or regulation. You shall not encourage or enable any other individual to do any of the foregoing actions prohibited in this section.

Although we’re not obligated to monitor access to or use of the Services or Content or to review or edit any Content, we have the right to do so for the purpose of operating the Services, to ensure compliance with these Terms, or to comply with applicable law or other legal requirements. We reserve the right, but are not obligated, to remove or disable access to any Content or User Content, at any time and without notice, including, but not limited to, if we, at our sole discretion, consider any Content to be objectionable or in violation of these Terms. We have the right to investigate violations of these Terms or conduct that affects the Services. We may also consult and cooperate with law enforcement authorities to prosecute users who violate the law.

  1. Feedback

You may provide us feedback, comments, and suggestions for improvements to the Services ("Feedback"), which are separate from User Content. You grant us a non-exclusive, worldwide, perpetual, irrevocable, fully-paid, royalty-free, sublicensable, and transferable license under any and all intellectual property rights that you own or control to use, copy, modify, create derivative works based upon, and otherwise exploit the Feedback for any purpose.

  1. Third Party Websites

You acknowledge that we have no control over, and no liability for any third-party websites or materials, including websites and materials that you may access from links on our Websites, including any Social Networks and websites operated by third-party service providers that we engage to assist us in providing the Services. Fractional makes no guarantees about the accuracy, currency, content, or quality of the information provided by such websites, and Fractional assumes no responsibility for unintended, objectionable, inaccurate, misleading, or unlawful content that may reside on those websites.

  1. Term and Termination

These Terms will remain in full force and effect while you use the Services, unless terminated as described in this section. We may give notice of termination and suspend your access to and use of the Services (including your Account), at our sole discretion, at any time and without notice to you. You must transfer and assign all your interests in Property LLC within 3 months of receiving the notice of termination. The process for transferring and assigning your interests in Property LLC must be in accordance with Article 8 of the Operating Agreement. Termination will become effective once you have successfully transferred and assigned all your interests in the Property LLC in accordance with Article 8 of the Operating Agreement. Any remaining funds in your Deposit Account will be transferred to your Connected Account, and your Deposit Account will be closed upon termination. Termination does not affect any remaining obligations and liabilities you may have under the Operating Agreement.

You acknowledge that any termination of your Account may result in the deletion of your User Content. You hereby waive any claims that you may have against Fractional in connection with the termination of your Account or the deletion of your User Content. The following sections of these Terms survive termination of your Account or these Terms: "User Content," "Indemnity," "Disclaimers," "Limitation of Liability," "Dispute Resolution," and "Entire Agreement; Severability; Waiver."

  1. Indemnity

To the fullest extent permitted by applicable law, you agree to indemnify, defend, and hold harmless Fractional, its affiliates, officers, directors, employees, consultants, agents, representatives, predecessors, successors, and assigns ("Fractional Parties") from any and all third party claims, losses, liability, damages, and/or costs (including reasonable legal fees and costs) ("Claims") arising from or related to (1) any access to, use of, or misuse of the Services by you or any third party you authorize to access or use the Services, (2) your violation of these Terms, (3) any User Content you create, post, share, or upload on or through the Services or any Social Network, (4) any Feedback, (5) your violation of the legal rights of a third party, and (6) your infringement, or infringement by any other user of your Account, of any intellectual property or other right of any person or entity. Fractional will notify you promptly of any such claim, loss, liability, or demand, and will provide you with reasonable assistance, at your expense, in defending any such claim, loss, liability, damage, or cost. You shall promptly notify Fractional of any Claims alleged by third parties, cooperate with the Fractional Parties in defending such Claims and pay all fees, costs and expenses associated with defending such Claims (including, without limitation, all legal fees and costs). The Fractional Parties shall have control of the defense or settlement of any third-party Claims. This indemnity is in addition to, and not in lieu of, any other indemnities set forth in a written agreement between you and Fractional.

  1. General Funds Availability

You agree that funds transmitted using the Services are subject to Bank Provider's funds availability policy which takes precedent over this Section 17 in the event of a conflict. At a minimum, the funds transmitted using the Services will be available in a time frame that is compliant with Regulation CC.

Bank Provider shall make funds available according to the type of deposit and when the funds are applied or credited to the Custodial Accounts. Some types of deposits may not be available for immediate use. When Bank Provider delays the availability of funds or places a hold on a deposit made to the Custodial Accounts, you may not withdraw those funds, and neither we nor Bank Provider will use them to pay any debits, such as ACH transfers or payments during the hold period. Bank Provider has the right to refuse any deposit. If final payment is not received on any item you have deposited into the Custodial Accounts, or if any ACH transfer is returned to Bank Provider for any reason, Bank Provider may require you to pay them the amount of the returned item.

The length of the delay in the availability of funds will vary depending on the type of deposit. The length of the delay in the availability of funds is counted in business days from the day your deposit is applied to the Deposit Custodial Account. For the purposes of these disclosures, Bank Provider business days are Monday through Friday. Federal holidays are not included. If Bank Provider receives a deposit before 4:00 PM CST on a business day, Bank Provider will consider that business day to be the day of your deposit. However, if Bank Provider receives a deposit after 4:00 PM CST or on a non-business day, Bank Provider will consider the deposit as having been made the next business day.

Deposits received on a day Bank Provider is not open will be processed the following business day that Bank Provider is open. Funds received from preauthorized electronic payments will be available on the day the deposit is applied to the Custodial Accounts. ACH credits received from an external bank account will be applied to the Custodial Accounts when we have verified the external account and received payment on collected funds. Once the funds are applied to the Custodial Accounts, they will have same day availability.

Electronic transfer deposits into the Custodial Accounts initiated through the Website may take up to five (5) business days from the date of the initial request but will post on the payment date of the deposit once the money has reached Bank Provider. There are exceptions that may apply in certain circumstances (e.g., if you have overdrawn your interest in the Deposit Custodial Account repeatedly in the last six months or there is an emergency). Bank Provider will notify you if Bank Provider delays your availability to withdraw funds and Bank Provider will tell you when the funds will be available for withdrawal no later than the seventh business day after the day of your deposit.

  1. Disclaimers

WE DO NOT WARRANT OR GUARANTEE THE ACCURACY OF THE INFORMATION AVAILABLE ON THE SERVICES. IF THERE IS AN ERROR OR DISCREPANCY ON OUR SERVICES, IN ANY COMMUNICATIONS WITH YOU, OR OTHERWISE, WE RESERVE THE RIGHT TO CORRECT THAT ERROR.

THE SERVICES ARE PROVIDED ON AN "AS IS" BASIS WITHOUT WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED. FRACTIONAL DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT AS TO THE SERVICES AND CONTENT, AND ANY WARRANTIES THAT ARISE FROM TRADE USAGE OR CUSTOM. Fractional DOES NOT WARRANT THAT THE SERVICES WILL MEET YOUR REQUIREMENTS OR THAT THE OPERATION OF THE SERVICES WILL BE UNINTERRUPTED OR ERROR-FREE.

Reference to any products, services, processes or other information by trade name, trademark, manufacturer, supplier, vendor or otherwise does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by us.

  1. Limitation of Liability

FRACTIONAL’S LIABILITY TO YOU IS LIMITED. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN NO EVENT SHALL FRACTIONAL BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES OF ANY KIND (INCLUDING, BUT NOT LIMITED TO, LOSS OF REVENUE, INCOME OR PROFITS, LOSS OF USE OR DATA, LOSS OR DIMINUTION IN VALUE OF ASSETS OR SECURITIES, OR DAMAGES FOR BUSINESS INTERRUPTION) ARISING OUT OF OR IN ANY WAY RELATED TO THE ACCESS TO OR USE OF THE SERVICES OR CONTENT (INCLUDING, BUT NOT LIMITED TO, USER CONTENT, THIRD PARTY CONTENT AND LINKS TO THIRD PARTY SITES) OR OTHERWISE RELATED TO THESE TERMS (INCLUDING, BUT NOT LIMITED TO, ANY DAMAGES CAUSED BY OR RESULTING FROM RELIANCE ON ANY INFORMATION OBTAINED FROM ANY Fractional PARTY, OR FROM EVENTS BEYOND THE FRACTIONAL PARTIES' REASONABLE CONTROL, SUCH AS SITE INTERRUPTIONS, DELETIONS OF FILES OR EMAILS, ERRORS OR OMISSIONS, DEFECTS, BUGS, VIRUSES, TROJAN HORSES, DELAYS IN OPERATION OR TRANSMISSION OR ANY FAILURE OF PERFORMANCE, WHETHER OR NOT RESULTING FROM ACTS OF GOD, COMMUNICATIONS FAILURE, THEFT, DESTRUCTION OR UNAUTHORIZED ACCESS TO THE FRACTIONAL PARTIES' RECORDS, PROGRAMS OR SYSTEMS), REGARDLESS OF THE FORM OF ACTION, WHETHER BASED IN CONTRACT, TORT (INCLUDING, BUT NOT LIMITED TO, SIMPLE NEGLIGENCE, WHETHER ACTIVE, PASSIVE OR IMPUTED) OR ANY OTHER LEGAL OR EQUITABLE THEORY (EVEN IF THE PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES AND REGARDLESS OF WHETHER SUCH DAMAGES WERE FORESEEABLE).

TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN NO EVENT SHALL THE MAXIMUM AGGREGATE LIABILITY OF THE FRACTIONAL PARTIES (JOINTLY) ARISING OUT OF OR IN ANY WAY RELATED TO (A) THE ORDER, RECEIPT OR USE OF SERVICES PURCHASED FROM FRACTIONAL EXCEED THE AMOUNT PAID FOR SUCH SERVICES; AND (B) THE ORDER, RECEIPT OR USE OF THE SERVICES OR CONTENT, EXCEED THE GREATER OF $250 OR THE AMOUNT YOU PAID TO US IN THE ONE (1) MONTH PERIOD IMMEDIATELY PRECEDING THE DATE ON WHICH YOUR CLAIM AROSE. THE FOREGOING LIMITATIONS SHALL APPLY EVEN IN THE EVENT YOUR REMEDIES HEREUNDER FAIL OF THEIR ESSENTIAL PURPOSE, AND THE FOREGOING SHALL CONSTITUTE THE FRACTIONAL PARTIES' SOLE LIABILITY AND OBLIGATION IN RESPECT HEREOF, REGARDLESS OF THE FORM OF ACTION, WHETHER BASED IN CONTRACT, TORT (INCLUDING, BUT NOT LIMITED TO, SIMPLE NEGLIGENCE, WHETHER ACTIVE, PASSIVE OR IMPUTED), OR ANY OTHER LEGAL OR EQUITABLE THEORY.

TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, YOU, ON BEHALF OF YOUR HEIRS, EXECUTORS, ADMINISTRATORS, LEGAL AND PERSONAL REPRESENTATIVES, HEREBY RELEASE, WAIVE, ACQUIT AND FOREVER DISCHARGE THE FRACTIONAL PARTIES FROM AND AGAINST, AND COVENANT NOT TO SUE ANY SUCH FRACTIONAL PARTY FOR, ALL CLAIMS YOU HAVE OR MAY HAVE ARISING OUT OF OR IN ANY WAY RELATED TO THESE TERMS. IF YOU ARE A CALIFORNIA RESIDENT, YOU HEREBY WAIVE YOUR RIGHTS UNDER CALIFORNIA CIVIL CODE 1542, WHICH STATES "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR."

THE LIMITATIONS SET FORTH IN THIS SECTION TITLED "LIMITATION OF LIABILITY" DO NOT LIMIT OR EXCLUDE LIABILITY FOR OUR FRAUD, GROSS NEGLIGENCE, OR INTENTIONAL, WILLFUL, MALICIOUS OR RECKLESS MISCONDUCT.

  1. Privacy Policy

Please refer to our Privacy Policy located at fractional.app/privacy for information on how we collect, use, and disclose information about our users.

  1. Governing Law

These Terms and any action related to these Terms will be governed by the laws of the United States and the laws of the State of California, without regard to their rules regarding conflicts of law.

  1. Entire Agreement; Severability; Waiver

These Terms constitute the entire agreement between you and us regarding the use of our Services through the Services. If for any reason a court of competent jurisdiction finds any provision of these Terms invalid or unenforceable, that provision will be enforced to the maximum extent permissible and the other provisions of these Terms will remain in full force and effect. No waiver of any breach of any provision of these Terms will constitute a waiver of any prior, concurrent, or subsequent breach of the same or any other provisions hereof, and no waiver shall be effective unless made in writing and signed by an authorized representative of the waiving party. Neither party is an agent or partner of the other. These Terms, and your rights and obligations herein, may not be assigned, subcontracted, delegated, or otherwise transferred by you without Fractional's prior written consent, and any attempted assignment, subcontract, delegation, or transfer in violation of the foregoing will be null and void. Fractional may freely assign these Terms. The terms and conditions set forth in these Terms shall be binding upon assignees.

  1. Copyright

All contents of the Websites and other Services are: Copyright © 2023 Fractional Homes, Inc. All rights reserved. Nothing contained on the Websites should be understood as granting you a license to use any of the trademarks, service marks, or logos owned by Fractional or by any third party.

  1. Contact

To contact us about these Terms, please email us at [email protected].

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Terms of Service

Last updated on June 23, 2023

  1. Introduction

These Terms of Use (these "Terms") are a legally binding agreement between you and Fractional Homes, Inc., doing business as Fractional ("Fractional," "we," or "us"). We offer a software platform and other services that help connect owners of real property with investors seeking to co-own and co-purchase that real property (the "Property Services") through our websites, including our website located at fractional.app (collectively, our "Websites") and application program interfaces and other services we make to interact with you through social networks (such social networks, "Social Networks"; our services that interact with Social Networks, "Social Network Services"; our Websites, our Social Network Services, our Property Services and our other services are collectively our "Services").

Certain features of the Services may be subject to additional terms and conditions which will be posted on the Services in connection with those features or provided to you in writing (including by email). All such additional written terms and conditions are incorporated by reference into these Terms. If there is a conflict between these Terms and such additional written terms and conditions, those additional terms and conditions will control.

By using the Services (including interacting with Fractional through Social Networks), you acknowledge that you have read and understand these Terms and agree to be bound by these Terms (on behalf of yourself or the entity that you represent). By using the Services, you acknowledge that you have the required capacity to enter into these Terms and that you are at least 18 years old. If you do not agree with these Terms, do not access or use the Services.

  1. Changes to Terms of Use

We may, in our sole discretion and without prior notice, modify these Terms at any time. If we do so, we will notify you by posting the modified Terms at fractional.app/terms and/or through other communications to you. You should review these Terms and our other policies (including our Privacy Policy available at fractional.app/privacy) periodically to be aware of any changes. By using the Services after changes to these Terms, you are agreeing to be bound by the changes.

  1. Eligibility

You may only use the Services if you (1) are 18 years or older, (2) are a legal resident of the United States, (3) are capable of forming a binding contract, (4) have not been previously suspended from the Services, and (5) are not barred from using the Services under applicable law. If you are entering into these Terms as an entity, then you must have the legal authority to accept these Terms on that entity’s behalf, in which case “you” will mean that entity.

  1. Registration and Accounts

To access and use the Services, you will have to create an account with Fractional (an "Account"). Currently, you can create your Account by giving us certain information at fractional.app/signup. You must provide us with accurate, complete, and up-to-date information for your Account. If you do not maintain current information with us, we may have to suspend or terminate your Account.

You acknowledge that all information you submit to us is accurate and you will update that information as appropriate. You may submit a request to delete your Account at any time by emailing us at [email protected] or by following other instructions posted on our Websites, if any. However, no Account deletion requests can be completed until you have: (1) successfully transferred and assigned all your interests in the Property LLC in accordance with Article 8 of the Operating Agreement (defined below); (2) been released from all your obligations and liabilities under the Operating Agreement; and (3) withdrawn your remaining funds from the Deposit Account (defined below).

By creating an Account, you are agreeing to receive electronic communications from Fractional, including through Social Networks and by email, and that any notices or disclosures that are sent to you electronically are sufficient written legal notice under this Agreement and as may be required by applicable law. Our communications to you may include information about your Account, the Services, and promotional information, such as contests, surveys, offers, and other relevant information. If you wish to unsubscribe to all or certain electronic communications you receive from Fractional, please follow the instructions for how to unsubscribe in the electronic communications.

  1. Identity Verification

In order to use the Services, you agree to provide us with the information we request for the purposes of verifying your identity and detecting potential money laundering, terrorist financing, fraud or other financial crimes and permit us to keep a record of such information. You will need to complete certain verification procedures before you are permitted to use the Services. Your access to the Services and the limits that apply to your use of the Services may be altered as a result of information collected about you on an ongoing basis. The information we request may include certain personal information, including, but not limited to, your name, address, telephone number, email address, date of birth, taxpayer identification number, a government identification, and information regarding your bank account (such as the name of the bank, the account type, routing number, and account number). In providing us with this or any other information that may be required, you confirm that the information is accurate and authentic. You agree to keep us updated if any of the information you provide to us changes. You authorize us to make inquiries, whether directly or through our third-party service provider Footprint Inc (“Footprint”), that we consider necessary to verify your identity or protect you and/or us against fraud or other financial crime, and to take action we reasonably deem necessary based on the results of such inquiries. When we carry out these inquiries, you acknowledge and agree that your personal information may be disclosed to credit reference and fraud prevention or financial crime agencies and that these agencies may respond to our inquiries in full. See our Privacy Policy at fractional.app/privacy for more information on how we treat your data.

  1. Bank Account

Once an offer to purchase a property is accepted by the seller and the due diligence process on the property has been completed, Fractional will form a limited liability company for the purpose of facilitating co-ownership of the property (“Property LLC”) subject to an operating agreement to be entered into by you, Fractional and each of the co-owners of the Property LLC (“Operating Agreement”). We have opened: (i) a custodial bank account at First Internet Bank of Indiana member FDIC (“Bank Provider”) for Property LLC and other similar entities managed by us (“Property Custodial Account”); and (ii) a custodial account at Bank Provider on you and other investors’ behalf for the sole purpose of funding the Property Custodial Account and receiving any distributions from the Property Custodial Account (“Deposit Custodial Account”). The Property Custodial Account and the Deposit Custodial Account (collectively, the “Custodial Accounts”) are solely for investment or business purposes, and shall not be used for personal, family, or household purposes.

We are not a bank, and we have no legal interest in or ownership of the funds in the Custodial Accounts. We have partnered with Bank Provider to provide to you depository, payment and money movement services (the “Banking Services”). To that end, Bank Provider has established the Custodial Accounts for the benefit of Fractional’s customers, including Property LLC, other similar entities, you and other individual investors. Bank Provider will hold title to all funds deposited in the Custodial Accounts for the proportionate benefit of the Property LLC and similar property entities, with respect to the Property Custodial Account, and you and other similar Fractional customers, with respect to the Deposit Custodial Account, as shown on the records maintained by Fractional. You understand and acknowledge that the funds transferred into the Custodial Accounts may be pooled and commingled with funds of Fractional and other Fractional customers. You further acknowledge that Bank Provider is an intended third party beneficiary of these Terms. Subject to these Terms and the Bank Provider agreement (located at https://increase.com/first-internet-bank-terms) that we agreed to in opening the Custodial Accounts (the “Bank Provider Agreement”), Bank is willing to open the Custodial Accounts and provide the Banking Services. You will not be charged any fees for the Banking Services.

By agreeing to these Terms, you also appoint Fractional to act as your agent for the purpose of the fulfillment of the Banking Services, including without limitation, to: (i) open the Custodial Accounts; (ii) receive and provide notices and communications on your behalf; (iii) maintain records of the Custodial Accounts and transactions on the Custodial Accounts; (iv) authorize and direct the Bank Provider to debit and credit accounts at other financial institutions; (v) collect the information necessary to establish your interests in the Custodial Accounts; (vi) disclose such information to the Bank Provider; and (vii) take any other action that Fractional deems necessary or desirable to carry out the transactions constituting the Banking Services. You hereby authorize the Bank Provider to follow the instructions of Fractional (whether electronic, written or oral) and agree that the Bank Provider may completely rely on such instructions without further investigation or authorization.

You also acknowledge and agree that Fractional provides certain services to and acts on behalf of the Bank Provider, including without limitation marketing Banking Services, delivering communications on behalf of the Bank Provider, collecting information from customers and authorizing, authenticating and completing transactions. You acknowledge and expressly agree to Fractional acting as agent for you and the Property LLC and as the agent for the Bank Provider for purposes of these Terms and the Banking Services. You hereby waive any conflict resulting from such relationships.

THE BANKING SERVICES ARE PROVIDED "AS IS" AND WITHOUT ANY REPRESENTATION OR WARRANTY, WHETHER EXPRESS, IMPLIED OR STATUTORY. FRACTIONAL AND BANKING PROVIDER SPECIFICALLY DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT. Neither Banking Provider nor Fractional guarantees continuous, uninterrupted or secure access to the Banking Services. Fractional and Banking Provider will make reasonable efforts to ensure that requests for electronic transactions are processed in a timely manner but makes no representations or warranties regarding the amount of time needed to complete processing because the Banking Services are dependent upon many factors outside of Fractional and Banking Provider’s control, such as delays in the banking system or the U.S. or international mail service.

Increase Technologies Inc. (“Increase”) is a backend software provider that provides a banking API to help you communicate with the Bank Provider to manage and access your interests in the Custodial Accounts. By agreeing to our Terms and Privacy Policy, you also agree to Increase’s terms and policies below:

Deposits can be made to the Deposit Custodial Account by ACH or wire transfers only. You authorize us to electronically debit and credit your interests in the Deposit Custodial Account (when and as applicable) to:

  • Fund the Property Custodial Account;
  • Receive any distributions from the Property Custodial Account; and
  • Transfer funds into your Connected Account.

Before you can make any withdrawals from the Deposit Custodial Account, you must connect your personal bank account to your Account (“Connected Account”). When you connect your Connected Account to your Account, we will ask you to verify ownership of your Connected Account. You authorize one of our third-party service providers to use your Connected Account credentials to retrieve account statement information.

  1. Fees

You can find information about our fees by reviewing your Operating Agreement, logging into your Account or clicking this link. We accept payment for our fees via ACH debit from the Property Custodial Account. By creating an Account and agreeing to these Terms, you authorize us to debit the Property Custodial Account to pay our fees.

  1. Changes to Services

We reserve the right, in our sole and absolute discretion, to change, reformulate, suspend, discontinue, or terminate any of the Services at any time, without prior notice.

  1. Content on the Services; Social Network Terms

All materials provided on the Services, including but not limited to information, documents, products, logos, graphics, sounds, images, compilations, content and services, are provided either by Fractional or by respective third-party users, authors, developers or vendors and are the copyrighted works of Fractional and/or such third-party providers (or is permitted/licensed to be used by such third party providers), unless specifically provided otherwise. Except where expressly provided otherwise by Fractional, nothing on the Services shall be construed to confer any license or ownership right in or to the materials provided through the Services, under any of Fractional’s intellectual property rights, whether by estoppel, implication, or otherwise. Subject to your compliance with these Terms, Fractional grants you a limited, non-exclusive, non-transferable, non-sublicensable license to access and view the Services solely in connection with your permitted use of the Services. If you use a Social Network in connection with the Services, you shall comply with all terms of use and privacy policies to such Social Network.

  1. User Content

For purposes of these Terms: (a) "Content" means text, graphics, images, music, software, audio, video, works of authorship of any kind, and information or other materials that are posted, generated, provided or otherwise made available through the Services by Fractional; and (b) "User Content" means any Content that you or other users provide to be made available through the Services. Content includes without limitation User Content.

Fractional does not claim any ownership rights in any User Content that you make available through the Services and nothing in these Terms will be deemed to restrict any rights that you may have to use and exploit your User Content. Subject to the foregoing, Fractional and its licensors exclusively own all right, title and interest in and to the Services and Content, including all associated intellectual property rights. You acknowledge that the Services and Content are protected by copyright, trademark, and other laws of the United States and foreign countries. You agree not to remove, alter or obscure any copyright, trademark, service mark or other proprietary rights notices incorporated in or accompanying the Services.

By making any User Content available through the Services, you hereby grant to Fractional and each of its affiliates a non-exclusive, transferable, sublicensable, worldwide, royalty-free license to use, copy, modify, create derivative works based upon, publicly display, publicly perform and distribute your User Content in connection with operating and providing the Services and Content to you and to other users.

You are solely responsible for all your User Content. You represent and warrant that you own all your User Content or you have all rights that are necessary to grant us the license rights in your User Content under these Terms. You also represent and warrant that neither your User Content, nor your use and provision of your User Content to be made available through the Services, nor any use of your User Content by Fractional or other users on or through the Services will infringe, misappropriate or violate a third party's intellectual property rights, or rights of publicity or privacy, or result in the violation of any applicable law or regulation.

You can remove your User Content by specifically deleting it. However, in certain instances, some of your User Content may not be completely removed and copies of your User Content may continue to exist on the Services. Neither Fractional nor its affiliates are responsible or liable for the removal or deletion of (or the failure to remove or delete) any of your User Content.

  1. Copyright Violations

Fractional respects the intellectual property of others and asks that users of our Websites do the same. In connection with our Websites, we have adopted and implemented a policy respecting copyright law that provides for the removal of any infringing materials and for the termination, in appropriate circumstances, of users of our online Websites who are repeat infringers of intellectual property rights, including copyrights. If you believe that one of our users is, through the use of our Websites, unlawfully infringing the copyright(s) in a work, and wish to have the allegedly infringing material removed, the following information in the form of a written notification (pursuant to 17 U.S.C. § 512(c)) must be provided to our designated copyright agent:

  • your physical or electronic signature;
  • identification of the copyrighted work(s) that you claim to have been infringed;
  • identification of the material on our Websites that you claim is infringing and that you request us to remove;
  • sufficient information to permit us to locate such material;
  • your address, telephone number, and e-mail address;
  • a statement that you have a good faith belief that use of the objectionable material is not authorized by the copyright owner, its agent, or under the law; and
  • a statement that the information in the notification is accurate, and under penalty of perjury, that you are either the owner of the copyright that has allegedly been infringed or that you are authorized to act on behalf of the copyright owner.

Please note that, pursuant to 17 U.S.C. § 512(f), any misrepresentation of material fact (falsities) in a written notification automatically subjects the complaining party to liability for any damages, costs and attorney's fees incurred by us in connection with the written notification and allegation of copyright infringement.

Pursuant to the Digital Millennium Copyright Act, 17 U.S.C. § 512(c) ("DMCA"), Fractional’s designated copyright agent for notice of claims of copyrights infringement can be contacted at the addresses below.

DMCA Agent, c/o

Fractional Homes, Inc.

188 King St PH5 San Francisco, CA

[email protected]

650-204-0689

You acknowledge, accept and agree that if we receive a notice of a claim of copyright infringement, we may immediately remove the identified materials from our Websites without liability to you or any other party and that the claims of the complaining party will be referred to the United States Copyright Office for adjudication as provided in the DMCA.

Please note that this procedure is exclusively for notifying Fractional and its affiliates that your copyrighted material has been infringed. The preceding requirements are intended to comply with our rights and obligations under the DMCA, including 17 U.S.C. §512(c), but do not constitute legal advice. It may be advisable to contact an attorney regarding your rights and obligations under the DMCA and other applicable laws. Allegations that other intellectual property rights are being infringed should be sent to [email protected]. Fractional may, in its sole discretion, delete the profile and posts of those who are accused of copyright infringement or other intellectual property rights.

  1. User Conduct

Fractional imposes certain restrictions on your permissible use of the Services. You are prohibited from violating or attempting to violate any security features of the Services, including, without limitation, (a) accessing content or data not intended for you, or logging onto a server or account that you are not authorized to access; (b) attempting to probe, scan, or test the vulnerability of the Services or any associated system or network, or to breach security or authentication measures without proper authorization; (c) interfering or attempting to interfere with service to any user, host, or network, including, without limitation, by means of submitting a virus to the Services, overloading, "flooding," "spamming," "mail bombing," or "crashing;" (d) using the Services to send unsolicited e-mail, including, without limitation, promotions, or advertisements for products or services; (e) forging any TCP/IP packet header or any part of the header information in any email or in any posting using the Services; (f) attempting to modify, reverse-engineer, decompile, disassemble, or otherwise reduce or attempt to reduce to a human-perceivable form any of the source code used by Fractional in providing the Services; or (g) using the Services in connection with the violation of any third party's intellectual property or proprietary rights, including copyrights, trademarks, or patents. Any violation of system or network security may subject you to civil and/or criminal liability. You shall not post, upload, publish, submit or transmit any Content, or otherwise conduct yourself in connection with the Services in a way, that: (a) infringes, misappropriates or violates a third party's patent, copyright, trademark, trade secret, moral rights or other intellectual property rights, or rights of publicity or privacy; (b) violates, or encourages any conduct that would violate, any applicable law or regulation or would subject Fractional or any of its affiliates to civil liability; (c) is fraudulent, false, misleading or deceptive; (d) is defamatory, obscene, pornographic, vulgar, or offensive; (e) promotes discrimination, bigotry, racism, hatred, harassment, or harm against any individual or group; (f) is violent or threatening or promotes violence or actions that are threatening to any person or entity; or (g) promotes illegal or harmful activities or substances. You shall not use, display, mirror or frame the Services, or any individual element within the Services, the names, trademarks, logos, or other proprietary information of Fractional or any of its affiliates, or the layout and design of any page or form contained on a page on the Services, without Fractional's express written consent. You shall not attempt to access or search the Services or Content or download Content from the Services through the use of any engine, software, tool, agent, device or mechanism (including spiders, robots, crawlers, data mining tools or the like) other than the software and/or search utilities provided by Fractional or other generally available third-party web browsers. You shall not send any unsolicited or unauthorized advertising, promotional materials, email, junk mail, spam, chain letters or other form of solicitation with the Services. You shall not use any meta tags or other hidden text or metadata utilizing a trademark, logo, URL or product name of Fractional or any of its affiliates without Fractional’s express written consent. You shall not use the Services or Content, other than User Content, for any commercial purpose or in any manner not permitted by these Terms. You shall not collect or store any personally identifiable information from the Services from other users without their express permission. You shall not impersonate or misrepresent your affiliation with any person or entity. You shall not violate any applicable law or regulation. You shall not encourage or enable any other individual to do any of the foregoing actions prohibited in this section.

Although we’re not obligated to monitor access to or use of the Services or Content or to review or edit any Content, we have the right to do so for the purpose of operating the Services, to ensure compliance with these Terms, or to comply with applicable law or other legal requirements. We reserve the right, but are not obligated, to remove or disable access to any Content or User Content, at any time and without notice, including, but not limited to, if we, at our sole discretion, consider any Content to be objectionable or in violation of these Terms. We have the right to investigate violations of these Terms or conduct that affects the Services. We may also consult and cooperate with law enforcement authorities to prosecute users who violate the law.

  1. Feedback

You may provide us feedback, comments, and suggestions for improvements to the Services ("Feedback"), which are separate from User Content. You grant us a non-exclusive, worldwide, perpetual, irrevocable, fully-paid, royalty-free, sublicensable, and transferable license under any and all intellectual property rights that you own or control to use, copy, modify, create derivative works based upon, and otherwise exploit the Feedback for any purpose.

  1. Third Party Websites

You acknowledge that we have no control over, and no liability for any third-party websites or materials, including websites and materials that you may access from links on our Websites, including any Social Networks and websites operated by third-party service providers that we engage to assist us in providing the Services. Fractional makes no guarantees about the accuracy, currency, content, or quality of the information provided by such websites, and Fractional assumes no responsibility for unintended, objectionable, inaccurate, misleading, or unlawful content that may reside on those websites.

  1. Term and Termination

These Terms will remain in full force and effect while you use the Services, unless terminated as described in this section. We may give notice of termination and suspend your access to and use of the Services (including your Account), at our sole discretion, at any time and without notice to you. You must transfer and assign all your interests in Property LLC within 3 months of receiving the notice of termination. The process for transferring and assigning your interests in Property LLC must be in accordance with Article 8 of the Operating Agreement. Termination will become effective once you have successfully transferred and assigned all your interests in the Property LLC in accordance with Article 8 of the Operating Agreement. Any remaining funds in your Deposit Account will be transferred to your Connected Account, and your Deposit Account will be closed upon termination. Termination does not affect any remaining obligations and liabilities you may have under the Operating Agreement.

You acknowledge that any termination of your Account may result in the deletion of your User Content. You hereby waive any claims that you may have against Fractional in connection with the termination of your Account or the deletion of your User Content. The following sections of these Terms survive termination of your Account or these Terms: "User Content," "Indemnity," "Disclaimers," "Limitation of Liability," "Dispute Resolution," and "Entire Agreement; Severability; Waiver."

  1. Indemnity

To the fullest extent permitted by applicable law, you agree to indemnify, defend, and hold harmless Fractional, its affiliates, officers, directors, employees, consultants, agents, representatives, predecessors, successors, and assigns ("Fractional Parties") from any and all third party claims, losses, liability, damages, and/or costs (including reasonable legal fees and costs) ("Claims") arising from or related to (1) any access to, use of, or misuse of the Services by you or any third party you authorize to access or use the Services, (2) your violation of these Terms, (3) any User Content you create, post, share, or upload on or through the Services or any Social Network, (4) any Feedback, (5) your violation of the legal rights of a third party, and (6) your infringement, or infringement by any other user of your Account, of any intellectual property or other right of any person or entity. Fractional will notify you promptly of any such claim, loss, liability, or demand, and will provide you with reasonable assistance, at your expense, in defending any such claim, loss, liability, damage, or cost. You shall promptly notify Fractional of any Claims alleged by third parties, cooperate with the Fractional Parties in defending such Claims and pay all fees, costs and expenses associated with defending such Claims (including, without limitation, all legal fees and costs). The Fractional Parties shall have control of the defense or settlement of any third-party Claims. This indemnity is in addition to, and not in lieu of, any other indemnities set forth in a written agreement between you and Fractional.

  1. General Funds Availability

You agree that funds transmitted using the Services are subject to Bank Provider's funds availability policy which takes precedent over this Section 17 in the event of a conflict. At a minimum, the funds transmitted using the Services will be available in a time frame that is compliant with Regulation CC.

Bank Provider shall make funds available according to the type of deposit and when the funds are applied or credited to the Custodial Accounts. Some types of deposits may not be available for immediate use. When Bank Provider delays the availability of funds or places a hold on a deposit made to the Custodial Accounts, you may not withdraw those funds, and neither we nor Bank Provider will use them to pay any debits, such as ACH transfers or payments during the hold period. Bank Provider has the right to refuse any deposit. If final payment is not received on any item you have deposited into the Custodial Accounts, or if any ACH transfer is returned to Bank Provider for any reason, Bank Provider may require you to pay them the amount of the returned item.

The length of the delay in the availability of funds will vary depending on the type of deposit. The length of the delay in the availability of funds is counted in business days from the day your deposit is applied to the Deposit Custodial Account. For the purposes of these disclosures, Bank Provider business days are Monday through Friday. Federal holidays are not included. If Bank Provider receives a deposit before 4:00 PM CST on a business day, Bank Provider will consider that business day to be the day of your deposit. However, if Bank Provider receives a deposit after 4:00 PM CST or on a non-business day, Bank Provider will consider the deposit as having been made the next business day.

Deposits received on a day Bank Provider is not open will be processed the following business day that Bank Provider is open. Funds received from preauthorized electronic payments will be available on the day the deposit is applied to the Custodial Accounts. ACH credits received from an external bank account will be applied to the Custodial Accounts when we have verified the external account and received payment on collected funds. Once the funds are applied to the Custodial Accounts, they will have same day availability.

Electronic transfer deposits into the Custodial Accounts initiated through the Website may take up to five (5) business days from the date of the initial request but will post on the payment date of the deposit once the money has reached Bank Provider. There are exceptions that may apply in certain circumstances (e.g., if you have overdrawn your interest in the Deposit Custodial Account repeatedly in the last six months or there is an emergency). Bank Provider will notify you if Bank Provider delays your availability to withdraw funds and Bank Provider will tell you when the funds will be available for withdrawal no later than the seventh business day after the day of your deposit.

  1. Disclaimers

WE DO NOT WARRANT OR GUARANTEE THE ACCURACY OF THE INFORMATION AVAILABLE ON THE SERVICES. IF THERE IS AN ERROR OR DISCREPANCY ON OUR SERVICES, IN ANY COMMUNICATIONS WITH YOU, OR OTHERWISE, WE RESERVE THE RIGHT TO CORRECT THAT ERROR.

THE SERVICES ARE PROVIDED ON AN "AS IS" BASIS WITHOUT WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED. FRACTIONAL DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT AS TO THE SERVICES AND CONTENT, AND ANY WARRANTIES THAT ARISE FROM TRADE USAGE OR CUSTOM. Fractional DOES NOT WARRANT THAT THE SERVICES WILL MEET YOUR REQUIREMENTS OR THAT THE OPERATION OF THE SERVICES WILL BE UNINTERRUPTED OR ERROR-FREE.

Reference to any products, services, processes or other information by trade name, trademark, manufacturer, supplier, vendor or otherwise does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by us.

  1. Limitation of Liability

FRACTIONAL’S LIABILITY TO YOU IS LIMITED. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN NO EVENT SHALL FRACTIONAL BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES OF ANY KIND (INCLUDING, BUT NOT LIMITED TO, LOSS OF REVENUE, INCOME OR PROFITS, LOSS OF USE OR DATA, LOSS OR DIMINUTION IN VALUE OF ASSETS OR SECURITIES, OR DAMAGES FOR BUSINESS INTERRUPTION) ARISING OUT OF OR IN ANY WAY RELATED TO THE ACCESS TO OR USE OF THE SERVICES OR CONTENT (INCLUDING, BUT NOT LIMITED TO, USER CONTENT, THIRD PARTY CONTENT AND LINKS TO THIRD PARTY SITES) OR OTHERWISE RELATED TO THESE TERMS (INCLUDING, BUT NOT LIMITED TO, ANY DAMAGES CAUSED BY OR RESULTING FROM RELIANCE ON ANY INFORMATION OBTAINED FROM ANY Fractional PARTY, OR FROM EVENTS BEYOND THE FRACTIONAL PARTIES' REASONABLE CONTROL, SUCH AS SITE INTERRUPTIONS, DELETIONS OF FILES OR EMAILS, ERRORS OR OMISSIONS, DEFECTS, BUGS, VIRUSES, TROJAN HORSES, DELAYS IN OPERATION OR TRANSMISSION OR ANY FAILURE OF PERFORMANCE, WHETHER OR NOT RESULTING FROM ACTS OF GOD, COMMUNICATIONS FAILURE, THEFT, DESTRUCTION OR UNAUTHORIZED ACCESS TO THE FRACTIONAL PARTIES' RECORDS, PROGRAMS OR SYSTEMS), REGARDLESS OF THE FORM OF ACTION, WHETHER BASED IN CONTRACT, TORT (INCLUDING, BUT NOT LIMITED TO, SIMPLE NEGLIGENCE, WHETHER ACTIVE, PASSIVE OR IMPUTED) OR ANY OTHER LEGAL OR EQUITABLE THEORY (EVEN IF THE PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES AND REGARDLESS OF WHETHER SUCH DAMAGES WERE FORESEEABLE).

TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN NO EVENT SHALL THE MAXIMUM AGGREGATE LIABILITY OF THE FRACTIONAL PARTIES (JOINTLY) ARISING OUT OF OR IN ANY WAY RELATED TO (A) THE ORDER, RECEIPT OR USE OF SERVICES PURCHASED FROM FRACTIONAL EXCEED THE AMOUNT PAID FOR SUCH SERVICES; AND (B) THE ORDER, RECEIPT OR USE OF THE SERVICES OR CONTENT, EXCEED THE GREATER OF $250 OR THE AMOUNT YOU PAID TO US IN THE ONE (1) MONTH PERIOD IMMEDIATELY PRECEDING THE DATE ON WHICH YOUR CLAIM AROSE. THE FOREGOING LIMITATIONS SHALL APPLY EVEN IN THE EVENT YOUR REMEDIES HEREUNDER FAIL OF THEIR ESSENTIAL PURPOSE, AND THE FOREGOING SHALL CONSTITUTE THE FRACTIONAL PARTIES' SOLE LIABILITY AND OBLIGATION IN RESPECT HEREOF, REGARDLESS OF THE FORM OF ACTION, WHETHER BASED IN CONTRACT, TORT (INCLUDING, BUT NOT LIMITED TO, SIMPLE NEGLIGENCE, WHETHER ACTIVE, PASSIVE OR IMPUTED), OR ANY OTHER LEGAL OR EQUITABLE THEORY.

TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, YOU, ON BEHALF OF YOUR HEIRS, EXECUTORS, ADMINISTRATORS, LEGAL AND PERSONAL REPRESENTATIVES, HEREBY RELEASE, WAIVE, ACQUIT AND FOREVER DISCHARGE THE FRACTIONAL PARTIES FROM AND AGAINST, AND COVENANT NOT TO SUE ANY SUCH FRACTIONAL PARTY FOR, ALL CLAIMS YOU HAVE OR MAY HAVE ARISING OUT OF OR IN ANY WAY RELATED TO THESE TERMS. IF YOU ARE A CALIFORNIA RESIDENT, YOU HEREBY WAIVE YOUR RIGHTS UNDER CALIFORNIA CIVIL CODE 1542, WHICH STATES "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR."

THE LIMITATIONS SET FORTH IN THIS SECTION TITLED "LIMITATION OF LIABILITY" DO NOT LIMIT OR EXCLUDE LIABILITY FOR OUR FRAUD, GROSS NEGLIGENCE, OR INTENTIONAL, WILLFUL, MALICIOUS OR RECKLESS MISCONDUCT.

  1. Privacy Policy

Please refer to our Privacy Policy located at fractional.app/privacy for information on how we collect, use, and disclose information about our users.

  1. Governing Law

These Terms and any action related to these Terms will be governed by the laws of the United States and the laws of the State of California, without regard to their rules regarding conflicts of law.

  1. Entire Agreement; Severability; Waiver

These Terms constitute the entire agreement between you and us regarding the use of our Services through the Services. If for any reason a court of competent jurisdiction finds any provision of these Terms invalid or unenforceable, that provision will be enforced to the maximum extent permissible and the other provisions of these Terms will remain in full force and effect. No waiver of any breach of any provision of these Terms will constitute a waiver of any prior, concurrent, or subsequent breach of the same or any other provisions hereof, and no waiver shall be effective unless made in writing and signed by an authorized representative of the waiving party. Neither party is an agent or partner of the other. These Terms, and your rights and obligations herein, may not be assigned, subcontracted, delegated, or otherwise transferred by you without Fractional's prior written consent, and any attempted assignment, subcontract, delegation, or transfer in violation of the foregoing will be null and void. Fractional may freely assign these Terms. The terms and conditions set forth in these Terms shall be binding upon assignees.

  1. Copyright

All contents of the Websites and other Services are: Copyright © 2023 Fractional Homes, Inc. All rights reserved. Nothing contained on the Websites should be understood as granting you a license to use any of the trademarks, service marks, or logos owned by Fractional or by any third party.

  1. Contact

To contact us about these Terms, please email us at [email protected].

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