FAQ ...

Half Ownership for Vacation Homes in cottage country and in the city!

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/ Can I take my existing home and sell half of it?

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 relationship with your co-owner 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 vacation home ownership?   
By co-owning your vacation property, you are able to share the costs associated with owning and managing your home. You also have the opportunity to buy something more discerning and in a more desirable locale. In addition, all OwnHalf.com properties can be fully furnished, with full-service management services available to take care of them 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 enter into a co-ownership plan that does not permit rental of the property. Your own-half plan is customized to suit you and we match you with a couple who share your interests and rules of ownership.

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. When you Own-Half, owners purchase a deeded interest in real estate which can be sold, transferred, willed or exchanged. When property values increase you can make money if you own 50% of the property.


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 co-owner who also shares your dream, but perhaps for a different reason .... the 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 favourite season with out a doubt and you can't wait for the summer to arrive to spend your summer months at your new vacation home. The other owner, they have chosen the winter and it happens to be their favourite season ... without a doubt!
That's good news for both parties.


They 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, by the lake. For every sailor there is a skier and if you recognize the advantages of this ... then the Own-Half purchase plan is for you.

6/ Do I need to find my own co-owner for my property?   
Not if you don't want to. OwnHalf.com offers its exclusive Buyer Match Plan, a database of interested buyers like you looking for just the right co-owner to share in the purchase of their property. OwnHalf.com will match you up with a suitable buyer.

7/ What is the Buyer Match Plan and how does it work?   
OwnHalf.com's Buyer Match Plan 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?  
OwnHalf.com's Client Profile Survey uncovers property and personal goals, among other factors, to help OwnHalf.com 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 time sharing requirements and possible rental revenues to re-sale, property maintenance and repair and more.

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/ Is the OwnHalf.com TIC agreement available for purchase?   
Yes, but it's free with your order of our marketing package. Our 20 page TIC agreement cost us over $3,000 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 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.

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 suites 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 suite 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 REALTOR®, or using OwnHalf.com's 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.

15/ Can we rent out our share 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 my absence. If not, there are usually caretaker 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.

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. 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 Million Dollars 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 Million Dollar Mega Yacht. Fractional boat plans for personal use and for charter income ... there are many possibilities and tax advantages!


18/ Can my property appreciate in value?  
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 adept at 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. There are tax advantages if the property is used for rental income as a business.

20/ Can I purchase an OwnHalf 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 an OwnHalf 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 mutually agreed to by both parties and based OAC.

22/ Can I take my existing vacation home and sell half of it?   
Absolutely. That's what many people do. Selling half of your property still allows you to use it 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 $495.


Buyer match form

 

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