Fractional ownership for home in Truckee, CA

Asked by Jbell7866, South Lake Tahoe, CA Sat Aug 10, 2013

We are currently looking at inventing in a 1/5 fractional ownership of a home in Truckee. We all agree we must hire an attorney up front to prepare all the required agreements to describe and agree on everything but we are not sure how to get financing. Are there lenders out there that would finance a fractional ownership with separate deeds on each owner reflecting the 1/5th ownership? We do not have the flexibility to make this a cash deal and are not interested in sharing one Deed with all partners. We want the flexibility to be able to sell individual shares down the line.

Also, does anyone know what happens when one partner sells his share? Does the property tax go up for all partners or only the share that is sold? I understand all states handle this differently.

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Nicole Reitter’s answer
Nicole Reitt…, Agent, Truckee, CA
Sat Aug 10, 2013
Hello- I represent several 1/8 fractionals in Northstar. To my knowledge, fractional financing is not available-- unless you have a pre-existing relationship with a bank & they're willing to lend.
Fractionals are often tenants in common arrangements & everyone has their own APN. Thus, they are not affected when someone sells from a property tax perspective.
Hope this helps & yes, best you have all docs drawn up by a lawyer.
Nicole
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Padden Prope…, , Truckee, CA
Sat Aug 10, 2013
Fractional financing - especially for a single family home, as opposed to a condo/hotel - is not available nationwide, unless working with some developers.

As to your tax question: If you have 5 deeds and the ownerships are "fee simple" then you shouldn't see a reassessment for the entire property at each sale - only for that specific share. Check with your attorney though, as this is important.

Good Luck
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