Co-Ownership in Real Estate & How it works

This week we started marketing a ¼ (quarter share) in a property, sometimes described as a co- ownership or often known as a syndicate purchase /ownership

The property, we are selling is located at 14 Monash Ave Great Mackerel Beach Via Palm Beach NSW 2108 Australia is owned by 4 families

The property was built by a group of four families who bought the land and built a charming timber low maintenance beachside cottage for use as a holiday home. One week out of every four week one share owner (or syndicate owner) has sole use of the property for a week.

In this instance the start date is a Friday from 6.30 pm and finished the following Friday at 6.30 pm.

The house rules are simple:

• The house is t be kept clean and tidy on departure
• The property is own as joint tenants
• The property cannot be used for mortgage purpose
• The property cannot be rented out
• If any co –owners have teenage or young adult children they are unable to allow these children use of property without an adult family member with them. This is to stop any parties and misuse of the property
• The cost of upkeep and maintenance is shared by four
• All costs are split by 4
• If one party wishes to sell out of their share then the other owners have first option to purchase
• The value of the share is worked by establishing the fair market price for the whole property and then dived by 4
• They have their own cupboards and wardrobe space and pantry shelving
• These syndicate ownership meet once a year
• They have a sinking fund set up for maintenance issues
• There is a trust deed attached to sale of contract which sets out the rules

This particular co- ownership works well and has been establish for over 25 years.

It is a simple straight forward arrangement giving you the opportunity to own real estate and also have a tangible asset that you can use and enjoy

The information in this article is of a general nature. While care has been taken preparing this information Kathryn Hall Real Estate does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any other purpose that the article may be used. Kathryn Hall Real Estate accepts no liability for any loss or damage (whether caused by negligence or not) resulting from use of information.