FAQ ... the advantage of Half Ownership!

  1. What is Own-Half ownership?
  2. Why was the Own-Half concept developed?
  3. What are the advantages of Own-Half ownership?
  4. How is this different from a timeshare?
  5. How do I know if I am a good candidate for Own-Half ownership?
  6. Do I have to find a co-owner for my property?
  7. What is the Buyer Match Plan and how does it work?
  8. How will I know if the co-owner is right for me?
  9. What is the Tenants-in-Common (TIC) agreement?
  10. What is covered in the TIC agreement?
  11. Is the OwnHalf TIC agreement available for purchase?
  12. How much time will I be able to use at my property?
  13. What if things don't work out with my co-owner?
  14. What if my co-owner defaults on their payments?
  15. Can we rent our property out when we are not using it?
  16. Who will take care of the property when we are not there?
  17. How do I find the right property?
  18. Will my property go up in value?
  19. What is the tax law governing Own-Half ownership?
  20. Can I purchase a Own-Half property as a 1031 Exchange?
  21. How do I finance a Own-Half purchase?
  22. I own a vacation home, but really have no use for it for the winter ... can I turn it into a fractional?

1. What is Own-Half ownership?
Own-Half ownership can be applied to cottages, vacation homes, condominiums, resorts, boats and yachts. In a nutshell ... Own Half allows you to own 50% of the property for 50% of the use and 50% of the expenses. By co-owning or sharing your property, you not only share the costs, you are also able to develop a co-owner relationship and thus have more control over how your property is used and cared for.

2. Why was the Own-Half concept developed?
OwnHalf ownership was created to meet the growing demand for shared ownership of boats and vacation properties. Own-Half, gives rise to the Own-Half phenomenon, which personalizes and protects ownership in a way vacation timeshare cannot.

3. What are the advantages of Own-Half ownership?
By co-owning your vacation property, you are able to share the costs associated with owning and managing your home or vessel. You also have the opportunity to buy something more discerning and in a more desirable locale. In addition, your property can be furnished by you, with full-service management services available to take care of of your unit while you're away, and they offer the ability to generate rental income if you so choose to enter into such a own-half plan. Remember, you may also enter into a co-ownership plan that does not permit rental of the property. We customize the plan to suit both owners.

4. How is this different from a timeshare?
In traditional timeshare developments, a buyer purchases time without ownership - a specific week or weeks - and lodging could be in many different units ... usually without appreciation. When you Own-Half, owners purchase a deeded interest in real estate which can be sold, transferred, willed or exchanged. When 50% ownership share of property has the chance increase in value just like traditional property appreciation. So therefore, you can actually be building equity while you're enjoying your half share designated time.

5. How do I know if I am a good candidate for Own-Half ownership?
If, you are like most people, you couldn't possibly use your vacation property year-round and you don't like the idea of paying a mortgage, taxes and other carrying costs year round when you are not using it. You're thrilled with the idea of cutting your costs in half by sharing it with a like-minded responsible co-owner who also shares your dream, but perhaps for a different reason and of course for a different season. You choose the summer for example because you are a boater and your family really enjoys the fun in the sun. It's your family's favorite season with out a doubt and you can't wait for the summer to arrive. The other owner has chosen the winter and it happens to be their favorite season ... without a doubt! That makes for a perfect ownhalf plan!

Those who like the winter in the north look forward to thick white snow falls for cross country and down-hill skiing and family reunions during Christmas and New Years away from the city. They will also own the fall months while you own the spring months in addition to your prime summer months. That's good news for both parties because for every sailor there is a skier and if you recognize the advantages of this ... then the Own-Half purchase plan designed for you and for them.

6. Do I need to find a co-owner for my property?
Yes, but we give you the tools to do it and perhaps your realtor can help too. Realtors often have suitable buyers. Work with your realtor ... they know the business well and often have prospects.

7. What is the Buyer Match Plan and how does it work?
OwnHalf.com's Buyer Match Plan is free and was designed to help interested buyers locate their ideal co-owner. OwnHalf.com clients complete a Client Profile Survey to determine the characteristics of their ideal co-owner - desired locale, price range, tastes, interests, lifestyles. That information is then entered into OwnHalf.com's extensive database of other interested buyers. Attributes are then cross-matched and clients are presented with a potential co-owner considered a "good fit". Clients can then proceed strictly "on paper" toward their purchase, or can agree to contact their potential co-owners to further determine suitability.

8. How will I know if the co-owner is right for me?
As part of the tools we offer you, you'll receive a Client Profile Survey that uncovers property and personal goals, among other factors, to help make successful matches. Interested buyers can then "interview" potential co-owners - either online, by phone, or in person as each party agrees. Ultimately, you decide who offers the best fit.

9. What is the Tenants-in-Common (TIC) agreement?
OwnHalf.com leaves nothing to guesswork when it comes to your vacation home. The Tenants-in-Common agreement is a legal document that formalizes all legal concerns regarding rights and responsibilities of each co-owner. The TIC is created and approved before purchase and covers everything from seasonal use requirements and possible rental revenues to re-sale, property maintenance and repair and more. We save you all the time and legwork by providing you with the standard template agreement ... you simply customize it.

10. What is covered in the TIC agreement?
These are just a few of the items covered in our TIC: purpose of ownership, management arrangements, bank accounts used, payment of expenses, transfer of interests, right of first refusal when selling, and scheduling rules.

11. Can we buy the OwnHalf TIC agreement template today?
Yes, and it includes a free portal web site and other free tools to help you promote your ownhalf plan. Our 20 page TIC agreement and shareholders agreements cost us thousands of dollars to develop by our representing solicitors. Much time and work has gone into designing the right Tenancy-in-Common agreement, saving you the time and leg work and probably many many hours of extra legal fees.
Our pre-designed TIC can speed up the process and get you into a plan much sooner, perhaps even months sooner ... for much less of a cost then you think.

Remember, purchasing a 50% ownership plan on your own or with our help means you pay 50% of the negotiated sale price of the property, not an inflated high profit margin that usually accompanies resort fractionals and timeshares.
Example: Resorts may divide a $350,000 valued vacation condo or home into five (10) week fractions. Each 10 week fraction may list for $200,000 or more.

If you purchase two 10 week fractions, you may pay up to $400,000 or even more for 20 weeks of use and chances are only a few of those weeks will be your favorite weeks for vacationing because the 10 weeks are spread out throughout the year. By implementing this fractional plan, the resort owner can sell his $350,000 valued unit for as much as $1,000,000. Great for the developer, but we believe our fractional plan wins hands down for buyers and sellers of private condos and homes!

Creating your own fractional plan with our help using our fractional kit just makes sound economic sense and gives you control about the fractional use, the time of use, the price you pay and the location ... and that can really be applied anywhere in the world!

Chances are, there will always be a 50% owner that would love to join you ...because it will make sound economic sense to them too!

12. How much time will I be able to use at my property?
This is established up front in the Tenants-in-Common agreement. Ultimately, it's up to each co-owner to determine what plan best suits each of you.

Here are some examples of a Own-Half arrangements;

  1. May to October (Summer ownership) or,
  2. Nov to April (Winter Ownership) or,
  3. May to October (Summer) with 2 weeks reciprocal exchange with the co-owner that owns Nov to April (Winter) or,
  4. Alternating every month or,
  5. Alternating every two months or,
  6. Alternating every two weeks or,
  7. Alternating every season or,
... or any other arrangement that suits both co-ownership partners or,

13. What if things don't work out with my co-owner?
The Tenants-in-Common agreement gives each owner the first right of refusal if one of the owners wants to sell. Options include selling your Own-Half to the other owner, putting it on the open real estate market through a local REALTORĀ®, or using the OwnHalf.com marketing program to sell your half interest in the property on your own.

14. What if my co-owner defaults on their payments?
The Tenants-in-Common agreement provides details and secured assurances on default issues. Each co-owner will be required to place one year of common expenses into an interest bearing reserve fund account that can be used in the event of a default in payment. But that does not mean the monies used in the reserve fund does not need to be replaced. If the reserve fund is not replaced by a delinquent co-owner after the third month, then his right to use the unit will be forfeited and his fractional share will be placed on the market for sale. This has been inserted for the benefit of both owners and protects the other owner from a non-payment of any kind by the delinquent owner!

15. Can we rent our property out when we are not using it?
Yes, if both parties have previously agreed to it in the Tenants-in-Common agreement and the location of the property is zoned for rentals. OwnHalf.com will help you find a property management company or give you the tools for a Rent-by-Owner scenario.
At your request, you may enter into an OwnHalf plan that does not allow the property to be made available for rental ... a condition that must be agreed to by both parties.

16. Who will take care of the property when we are not there?
If a professional property management company manages the property, they will take care of the property in your absence. If not, there are usually housekeeping services in resort towns that can be hired to look after your property. OwnHalf.com will help you locate those services where ever you plan to settle your vacation dreams. Also, don't forget, when its time to leave the other fractional owner will take care of the property and keep it secured.

17. How do I find the right property?
OwnHalf.com has its finger on the pulse of the luxury vacation home market, cottages, chalets, condominiums, Yachts and Houseboats continually scouting the U.S., Canada and Europe for those one-of-a-kind, hard-to-find, signature properties that have made OwnHalf.com one of the most sought-after sources for luxury second homes. It does so through a network of realtors. Based on the criteria collected from the Client Profile Survey, Own Half.com will access its extensive network of properties and licensed real estate brokers to uncover the vacation property that is just right for you. Vacation properties from 100,000 to 5,000,000 plus ... we will find just what you are looking for.
For OwnHalf sailors ... a fractional plan for a small $20,000 watercraft to a 5,000,000 Mega Yacht.
Fractional boat plans for personal use and for charter income ... there are many possibilities and many tax advantages!

18. Can my property value increase?
Yes, but as with any market, it can go up and down. OwnHalf.com will gather information on each property so that each buyer can make an informed decision. OwnHalf.com is especially adapt to locating properties in up and coming areas that offer the greatest potential for return on investment. Now is the time to buy property and increase your portfolio through our OwnHalf program.

19. What is the tax law governing Own-Half ownership?
The tax laws are the same that govern any real estate purchase. You will need to check with your accountant to determine the advantages of using your purchase as a second home or as an investment property. Depending where you reside, there may be certain tax advantages if the property is used for rental income as a business.

20. Can I purchase a Own-Half property as a 1031 Exchange?
Yes. Depending where you live and where you intend to buy your OwnHalf vacation property. Tenants-in-Common properties are often used in 1031 Exchanges. With this type of property, you can enjoy your exchange as long as you follow the rules established by the government on investment property for interesting tax advantages.

21. How do I finance a Own-Half purchase?
The best way to finance your purchase is with a home equity loan against your primary residence. You can also buy an Own-Half plan with a low rate mortgage, or enter into a vendor finance arrangement. Still the best arrangement is full cash payment with no financing options. Many purchase and finance options are available, providing they are mutually agreed to by both parties and based OAC. You decide on the finance plan whether it be a cash purchase or financed.

22. I own a vacation home, but really have no use for it for the winter ... can I turn it into a fractional?
Absolutely! That's what many people do. Selling half of your property still allows you to use it for the time you want while eliminating some of the costs associated with full ownership. OwnHalf.com can help you locate a buyer through its Buyer Match Plan and can assist in putting together a winning marketing plan. All the contracts are free when you order your marketing kit for only $375.