What if one of the owners has a mortgage lien, other type of forced lien or judgment against them?

If you were to rent a place with your friends, if one person couldn’t come up with their share of the rent, all the other housemates would have to cover it or risk eviction. HOWEVER, with Fractional Ownership every owner holds a separate deed, so one deed-holder’s foreclosure does not affect the others. The other owners continue on “business as usual” and the remaining piece of the pie likely gets sold to another buyer. The property manager will take care of everything for you.

What if two of the owners want to use the home at the same time?

Many fractional agreements are fully negotiable. Since the ownership is so small, it’s rare that conflicts arise. Typically, the arrangements are made on a rotating schedule so that each owner will get to use the property during every season and on every holiday eventually. Sometimes the property manager will set up an online scheduling system for last-minute requests or changes in usage. Sometimes there are “priority” systems that rotate every year.

What if something needs maintenance or gets damaged?

Owners can simply alert management via a Repair & Maintenance form or can call the management company at any time for a pressing issue. In terms of damage, owners are individually responsible for their time of occupancy. If there is damage beyond normal wear and tear, the owner who created it must pay for it. However, property damage among fractionally owned properties is virtually nonexistent, since these homes are so high-end.

What if I want to sell my share?

Most agreements offer an optional buy-out after a certain number of years. Usually the other shareholders will be offered the fraction first. If no one wishes to buy it, then the owner can sell his or her share privately or go through the management company for assistance. This can be done at any time, of course.