More fractional residences are poised to open their doors on the island of Bermuda, which is good news for second home buyers unable to meet the country’s restrictive foreign ownership laws.

The Reefs Club, a fractional development on the property of a five-star resort in Southampton, will open next spring, while the second phase of shared ownership villas at the Residence Club at Tucker’s Point is wrapping up construction this year. Fractional units are also slated for Ariel Sands, an older hotel that is being demolished and replaced with shared-ownership residences.

Buying property overseas often comes with restrictions, but Bermuda’s laws are among the most limiting for foreign buyers. Non-Bermudians cannot purchase undeveloped land, with few exceptions. Foreigners can only purchase most existing homes and condominiums if they are being sold by a non-Bermudian or are in a development that has been designated for foreign-ownership. There are a limited number of single-family homes that can be purchased by foreigners, and real estate brokerages in Bermuda often maintain separate listings of homes and condos that non-Bermudians are permitted to buy.

The restrictions are likely the primary reason for the lack of destination clubs with homes in Bermuda. One exception is One Key, which leases the homes in its portfolio, rather than purchasing residences, a factor that enables the club to have a presence on the island.

These new fractional properties are designated for foreign-ownership. In mid-2009, the Reefs Club will roll out one-tenth shares of two- and three-bedroom units. The 1,606 square foot, two-bedroom shares start at $350,000, while the three-bedroom units, spread across 2,028 square feet, are selling for $410,000.

The Tucker’s Point Club opened its first fractional units in 2005, but it is adding 14 more units at a development called Harbor Court this year. It is selling one-tenth shares of two- and three-bedroom units that entitle buyers to three weeks a year of use. Prices range from $355,000 to $455,000. The fractional purchase also includes a membership at the Tucker’s Point Club and access to the golf course, a membership that typically sells for nearly $100,000. The development also includes several new whole ownership villas with price tags starting at $3.2 million. An 88-room hotel with a 12,000 square foot spa will also open its doors on the property in the spring of 2009.

Both fractional projects are a part of the Elite Alliance, an exchange network of fractional owners that includes Seven Canyons in Sedona, Ariz. and the Residence Club at PGA West in La Quinta, Calif., among others.

Learn more about purchasing a fractional vacation home by downloading our Decision Guide to Fractional Residences.