CO-OWNERSHIP FAQ

The Answers to Frequent Questions

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 several, individuals.

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 12 other people. Now, you own 1/12 of the property and have others to share in the costs of maintenance, management and taxes.

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.

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.

The annual operating expenses are anticipated to be between $1,500 and $2,500 per year depending on the unit selected.

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.

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.

Owners have the right to make inquires and inspect the books anytime.

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.

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 management company handles some of the small maintenance, while the major construction is contracted out to reliable contractors.

Maintenance on the home will attempt to be scheduled during times the home is vacant or during the one annual maintenance week scheduled per year. It is only necessary to disturb Owners in rare cases of emergency.

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.

All the housekeeping and maintenance upkeep is provided for the owners. When you arrive the home is clean and ready for you.

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.

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.

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 summer time.

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.

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.

Although we love pets, pets are not permitted in the home to respect the desires of all owners.

Smoking is not allowed on the property.

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.

Client or employee use is acceptable. Some owners deduct the costs associated with such use.

The occupancy varies based on the size of home.

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.