In our slow market, several property owners feel that they can get more money if they divide their condo or their home into fractional interests. I received an e-mail this week from a waterfront owner in Tampa who wanted to sell 3 three-month interests in his property, and maintain one three-month interest for himself.
I haven't responded, because I don't have the expertise (yet) to handle these situations. If it were a condo, the condo association and their rules would probably determine whether this can be done. In a single family - what about the zoning requirements of a "single family home"? The zoners probably never considered four different one-at-a-time owners. What about deed restrictions? Who's going to control the expenditures? Is it "Not a security" if none of the owners expect income from renting out all or part of their 3 months? What if only 2 or 3 of the shares sell?
Sounds like lots of issues and concerns. I'm wondering if any of you have been involved in these situations, how they were structured, and what the outcome was.
