- History of share ownership and questions about getting a share in the apartment
- Design and preparation of a receipt for the share of apartments for sale
- How to divide the ownership of fractional ownership?
- How to divide the share in common ownership?
- What's happening, If interest holders do not comply with its obligations?
- Sample receipt for share in the apartment
fractional ownership – this method, in which multiple parties can participate in the possession of valuable tangible asset, eg property, real estate or part of the holiday house. One of the main motives of property ownership in the shares, It is the ability to share the cost of maintaining the property or real estate, which will not be used and serviced by only one owner.
Each share property requires some sort of rules, in accordance with which its management will be, pursuant to the provisions set out in the property documents. Based on agreements, agreements and receipts each owner receives a guarantee of access to the asset. Besides, each owner pays a part of the annual fees for the management and maintenance in relation to the percentage of ownership.
History of share ownership and questions about getting a share in the apartment
The practice of shared ownership of family or friends for a joint use of real estate for vacation or living there for many years. But shared ownership industry property ownership began in the United States, with the sale of cottages at ski resorts in the Rocky Mountains in the early 1990s. These first fractional ownership revealed, that people do not want to buy the whole house, which they will use for only a few weeks of the year, holidays in the mountains. According to research firm, at 2017 there were over in North America 312 shared ownership property, that shows the popularity and profitability of such holdings to the public.
Outside of the US non-profit form of share ownership has existed for several decades,. In this form, the people, unrelated to each other or related family ties, draw up agreements, receipt and agreement to buy, eg, property for recreation, transport or real estate. Such unions act as private groups with a small number of sharers, on a commercial basis, usually, they simply share the costs and use of property. Such receipts of share ownership to own apartments, houses or vehicles.
The share of real estate gives the owner certain privileges, eg, a few days or weeks, when they can use it property at a minimal cost, interest holders can always sell his part of the property, lease it or to live there with all the legitimate. Also his children without the consent of other shareholders can always count on your "angle". operations, which can be performed with fractional ownership is very diverse. However, it is important to take into account the basic rule, namely to have agreement concluded between all the members, or real estate investors. In this case, there is no doubt, that any use of share ownership will give the opportunity to the successful implementation of its part in the possession of the property.
However, fractional ownership property raises a number of questions, eg:
- How to divide the ownership of fractional ownership?
- how to divide the share in common ownership?
- what's happening, If interest holders do not comply with its obligations?
Design and preparation of a receipt for the share of apartments for sale
The law does not establish clear rules for drawing up such a document. Its shape may be arbitrary form, However, the content must be specific, does not contain errors, and filled with the full information about all the participants in the transaction. The content of receipts and the sequence of entering the data must have the following form and order:
- title: "Receipt of getting a share of the contract of sale of an apartment consisting in common ownership";
- date and place of transfer of money;
- F.I.O., date of birth address equity holders registration;
- series passport, issued by, date of issue, subdivision code;
- name of the body, vыdavsheho passport;
- particular phrase, such a plan: "…received(but) full share of cash in the amount of _______________ rubles as payment under a contract of sale and purchase apartments, consisting in common ownership;
- title of the treaty on the basis of which the receipt: «Contract ________ № _____” from “__”_________ 20__;
- "... means obtained from Citizen(-that) _______________________ (F.I.O., year of birth, address);
- series passport, N who and when issued;
- division and the name code, vыdavsheho passport;
- FI. receipt and signature of the originator;
- of identification signature of the notary.
Since the form of the document is not strict, it can be adapted to the needs and characteristics of a specific transaction. The receipt is important to specify all the details, and express the will of the owners, if necessary. In the case of correct and complete filling of the content, Receipt can provide full legal protection of the rights and interests of all participants in the transaction, even if it was not certified at the notary's office.
How to divide the ownership of fractional ownership?
Regardless of, who is the share participant and how many of them all, the seller must determine how to use the shared property. This is usually the first step in determining the structure shares ownership. use structure will determine other factors shared property ownership.
In the analysis of the various shared ownership of use cases, co-owners of the rights to use will be exchanged between a matter, which system is adopted. Choose whether to use the share ownership structure of distribution should be determined by the location and size of the object, his season, probable duration of visits and the, how people can plan its use, as well as the desire to dispose of it in the future.
The most popular model is the use of shared ownership "assignment approach". Each co-owner is assigned the exclusive right to use the house for a certain number of days, weeks, months or years. Periods of use can be fixed, eg, "The month of February" or "the first two weeks of February and July", variables, which means that they change every year, or a combination of fixed and variable.
The property of every interest holders may enter the real estate division in parts, or by square meters. When one of the shareholders wish to sell or rent out their part, on the purchase price can be affected just the size of the share in the property.
The right to use may be limited only by the owners or extended family, friends, tenants or other persons. Different usage rights can be applied to different periods of use.
Less popular model of the distribution rights for the use of the equity is a "pay per use". Officers are paid a pre-agreed "fee for use" for each day or week of use. User fee, along with any income, received such, by putting a stake in rent, It used to pay for part ownership in real estate costs.
If the fee for use and rental income together exceed the costs, surplus divided between owners; if there is a lack of, each owner must contribute.
How to divide the share in common ownership?
In a co-ownership agreements, associated with one house or apartment, operating expenses, such as insurance, Maintenance, repairs, improvement, utilities and management, generally divided proportionally ownership, so that each owner will pay 20% for each of those costs.
If the property is rented, every interest holders received respectively 20% of any income. Resale of one co-owner should never increase the tax burden on other property share, owned co-owner.
The parties may decide, that each co-owner will contribute only in the operating costs of that part of property, for which he has the right to use.
Receipt of the joint ownership must provide a specific and clear authorization, If there is any conflict situation. The more clearly set forth the essence of fractional ownership receipts, the less likely, she will not be able to help solve a specific problem. The advantage of a detailed statement of the essence of the transaction receipt is, that it allows the co-owner to solve more problems and makes it more useful in dealing with conflict situations.
What's happening, If interest holders do not comply with its obligations?
Although the co-owner is a possible cause of the potential risks in the future, do not underestimate the harm, which can cause an unscrupulous property interest holders. More common problems, associated with the use of common property is the inability to keep it clean, use it in an unauthorized time or improperly, and the use of, rental or sale without the consent of the other equity holders, in the possession of the property.
real estate investors, comply with the terms of the contract can always decide to use all its legal force, or show loyalty, if a circumstances require leniency. However, the co-owners do not have to be lenient, if one of the members of the agreement ignores the rules or jeopardizes property, in common ownership.
If the accused is an equity owner decides to challenge this assertion, the matter is referred to the resolution of the dispute, in arbitration court. If the accused is a co-owner does not correct your breach or does not contribute to resolution of the dispute within the prescribed period, its share in the joint property is sold at a market price with carefully described procedure. The sales revenue is used to pay for any debts, transaction costs, court costs and fines, and any remaining amount divided among the remaining co-owners.
Some real estate investors decide, it is appropriate to establish a reserve for them, funds from which will be used for the payment of interest on mortgage loans, taxes, insurance, just in case, if the co-owner will not be able to contribute its share.
A sufficient number of handwritten text to provide additional protection, since it would establish the authorship of receipts during the forensic examination and analysis of handwriting. Receipt allows the parties to obtain protection against unfair fulfill its obligations, and an incentive for the faithful follow the agreement.