It's referring to the type of ownership interest in the property. With this particular property, title is held as Tenants In Common. That means you can become owner of as little as 1/8 of the property. You would have the right to use the property, presumably a single unit of an 8-unit complex, and can sell your interest at any time. If you were to acquire all 8 interests, you would be sole owner of the entire property. This is not the normal way to hold title to a property, when you intend to own a condo.
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There are some wrong answers on here, so I wanted to be clear for you: This is a fractional ownership, meaning you can buy 1/8 of the ownership of this condo for $100,000.00 (so in essence, they are stating that this condo is worth $800,000 total). It is kind of like a timeshare. You would most likely be entitled to about six and a half weeks a year depending on what agreements there are in place. There is also an opportunity to buy more shares of the home. I don't think this is what you are looking for, but it's important to ask these questions and get right answers! Feel free to contact me directly.
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It sounds like a 1/8 interest in a property, meaning there are 7 other units in an 8-unit complex, and you would have the other eighth.
If you're looking at a house, it probably means you'd be sharing ownership with others, an equity sharing situation. Equity sharing is often done with investment properties, where each owner would have a certain percentage of interest in the property. It could be split evenly, or maybe one person took the risk of the loan, so they'd get extra interest in the property, or maybe one person had a higher down payment, so their share would be larger, etc. Owners are often Tenants in Common in this this type of ownership.
For example, if you and two friends bough a house together, and you all had the same down payment, you would have 1/3 ownership.
Hope that helps!
This is called "fractional ownership" meaning that you are entitled to 1/8 of the time per year in this unit, it's not a bad deal in the sense that that condo would probably sell for about $725-750K in this current market. You would be giving it a valuation of $800K since it's $100K times 8 owners. That's not too bad...many of these fractional ownership situations have valuations that are 200% of true value.
What is important is: 1) how this time is split up, 2) your monthly fees/taxes, 3) any limitations on usage.
I would be glad to look into all of this for you. Feel free to contact me at:
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Typically this type of ownership would be used if friends or family members were to buy a property together (usually a vacation type property). In those cases you would all agree upon who gets to use it when. When buying into a "tenants in common" type situation, be sure to know what has already been agreed upon for usage. If it is set in stone for specific dates or if it is flexible (Like rotating out holidays).
You may also have the future options of buying more "shares" if the other parties were willing to sell.
Hope this helps and good luck.
You could purchase 1/8 ownership or more. If you only bought 1/8 you would have to make arrangements with the owners of the other 7/8 to share the time that you could use the property. There could be one owner who owns the other 7/8 or there could be several owners. You would not be buying â€œtimeâ€ to use a property as you would be in a timeshare, you would be buying a fractional ownership of the entire property. In function, yes, similar to a timeshare.
The point is that the owners make their own agreement of how the time is split up among the owners. There is also the overriding rules of the homeowners associationâ€¦assuming the property is in a â€œcommunityâ€.
It is a concept that will work for some and not others.