CO-OWNERSHIP FAQ – The Answers to Frequent Questions
is co or fractional ownership? Answer available upon selection
Co-ownership is essentially partial ownership of real estate, not the whole.
With co-ownership, a property is owned and shared by at least two, and often
To understand co-ownership, consider a large, and expensive, property that may
be difficult to purchase and care for on your own. Instead of becoming the sole
owner of the property, you purchase a share of it, as do 10 other people. Now,
you own 1/10 of the property and have others to share in the costs of maintenance,
management and taxes.
different than a timeshare?
Often, people confuse co-ownership with timeshares. Both co-ownership
and timeshare situations are common with vacation and resort-type properties.
With a timeshare, however, you would purchase a specific amount of
time to spend at the property, such as 3 weeks out of every year. You
would not actually own any portion of the property. With co-ownership,
you would own the portion of the property you purchase.
Co-ownership is attractive because it offers an easy way to own vacation
property. With this type of ownership, you have a place to vacation,
yet are freed from being solely responsible for the property and related
expenses. In most cases, a third party or management company takes
care of everything from upkeep and utilities to taxes and insurance.
Though you have little responsibility with a co-ownership, you do get
the deed to the property, specifying the number of shares you own.
You can gift it or sell it as you wish.
Who is responsible
for property expenses?
All expenses, including reserves are budgeted annually. Expenses will
be split among the owners according to their ownership percentage and
billed to them on an annual basis. Each property will be professionally
managed to reduce your burden of maintenance, cleaning, and replacement
of worn items.
How much are
the annual operating expenses?
The annual operating expenses are anticipated to be between $1,500
and $2,000 per year.
Are there ever
assessments beyond the annual operating expenses?
There may be assessments only if necessary for the upkeep and maintenance
of the property. Any out of the ordinary expenditures not provided
for in the budget would need a majority approval from the Owners.
Who handles the
operating funds on behalf of the owners?
All operating fees are collected and disbursed by the property management
company hired on behalf of the owners association. Each property has
its own owners association and bank account to manage the finances.
May we see the
Owners have the right to make inquires and inspect the books anytime.
Who will manage
We have selected a professional property management company to provide
owners with "no hassle" vacations. Owners will be given contact information
for the property management company to reserve your vacation and schedule cleanings.
Are we limited
to current management?
Management services are provided at the pleasure of the Owners. The
management contract runs for one year at a time with automatic renewal
unless notice to terminate is given by the Owners.
the property maintenance?
The property management company handles some of the small maintenance,
while the major construction is contracted out to reliable contractors.
When is the
Maintenance on the home will attempt to be scheduled during times the
home is vacant or during the two annual maintenance weeks scheduled
per year. It is only necessary to disturb Owners in rare cases of emergency.
May I rent my
designated weeks per year?
Yes, you can rent your weeks per year or turn them over to property
management to rent for you. Any damage to the property beyond normal
wear and tear will be the responsibility of the owner.
Are we responsible
for performing any maintenance duties?
All the housekeeping and maintenance upkeep is provided for the owners.
When you arrive the home is clean and ready for you.
May we vacation
for longer than 1 week at a time?
Vacations of two weeks or more may take place at any time of the year.
These changes are handled through the property managers, which will
work to trade time with other owners.
May we change
our assigned vacation dates?
Trading your assigned vacation weeks with other owners is possible.
Owners should notify the property managers with their request and property
management will work to arrange for trades with other owners.
How do we know
which weeks are ours?
The Owner's Calendar assigns all weeks in the year. You always know
in advance which dates are yours. Every year the weeks rotate forward
one week so each owner receives an equal share of holidays and peak
When is the
The weeks are set up for arrival on Friday after 4:00 P.M. The Friday
arrival allows for an extra night, particularly, in case you plan to
use only the weekend portion of your week.
When is departure
Departure is on or before 11:00 on the day you choose or upon the following
Friday. Management needs the full 5 hours for housekeeping to prepare
the home for the next Owner's arrival.
May we bring
Although we love pets, pets are not permitted in the home to respect
the desires of all owners.
May we smoke
in the property?
Smoking is not allowed on the property.
May we let a
friend use the home?
It is your home and you can give the keys to anyone you choose. Guests
of owners tend to take excellent care of the property provided they
know the policies; no pets, no smoking, etc.
May we let clients
or employees use the home?
Client or employee use is acceptable. Some owners deduct the costs
associated with such use.
How many people
may stay in the home?
The occupancy for this property is a maximum of 6.
we resell our ownership interest?
Your interest may be resold by you or a licensed real estate agent,
subject to the declarations and bylaws. If you desire, the listing
company can provide you with resale assistance.