Fractional Ownership ~ Just the Basics
FRACTIONAL HOMES & CONDOS Just the Basics…
________________________________________
HAWAII FRACTIONAL OWNERSHIP GUIDELINES:
By Hawaii Law, all fractional ownership opportunities must be a minimum of 60 consecutive days annually. This ownership is for a specific home or condo unit and a specific timeframe.
________________________________________
ANNUAL COSTS – Maintenance and other fees:
Each fractional property is unique in its set-up and fee provisions and will vary depending on the preferences of the developer. However, from what I have seen for fractional condos and homes offered for 60 days annually, the average a fractional owner will pay approximately $4500.00 annually. This annual fee will generally cover: interior contents insurance, taxes, condo complex maintenance fees (water, trash, exterior insurance and care, common area maintenance), utilities (cable, internet, electric & air conditioning if available), a contribution to a reserve account for interior property care, management company fees (accounting, cleaning, and inventory between owner usage), and in some instances a vehicle for owner usage. Fees will vary depending on what the Developer has set up as well as future usage that may or may not be determinable prior to ownership. All fees will be disclosed during Escrow and are subject to change as defined by ownership documents.
________________________________________
RULES & REGULATIONS:
All condominiums will have House Rules, Covenants, Conditions, & Restrictions. Each fractional, home or condo, will also have a specific set of guidelines, rules & regulations, as well as Covenants, Conditions, & Restrictions. These elements are there to ensure the comfort and happiness of all owners and cover guidelines for usage, reserve accounts, pets, smoking, general care, purchases, etc. In most cases, all homeowners will have to vote unanimously to change or alter current restrictions or to implement new ones as needed.
________________________________________
REVIEW OF DOCUMENTS:
Due to the confidential nature and cost of creating fractional shares and documents, all documents will be provided during Escrow and Buyers will have a specific review period in which they may accept or decline to purchase. These documents will include those specific to the fractional ownership as well as all documents pertaining to the specific condo complex and most likely the home subdivision.
________________________________________
FINANCING:
Financing is available through a few specialized Lenders.
I recommend contacting Judy Kempf for additional information regarding the nuances of financing your fractional purchase:
Judy Kempf, CMPS
Certified Mortgage Planning Specialist
Creative Capital & Mortgage
Office: 808-246-1787
Cell: 808-346-2226
E-Mail: judy@ccm-loans.com
________________________________________
RESALE:
Your fractional property may be resold in its entirety as you please. Some ownership guidelines will require that you offer a first right of refusal to other owners of the same property.
________________________________________
More questions? Feel free to call or email at your convenience!
Mahalo!
Jamie Friedman (RA)
RE/MAX Kauai
cell (808) 634-2011
fax (808) 822-7677
www.AllHawaiiIslands.com
Leave a Comment