WHAT HAPPENS IF A FRACTIONAL INTEREST OWNER DOESNT FULFILL HIS/HER OBLIGATIONS?
While co-owner default is a major potential risk of shared ownership, it is important to keep the problem in perspective. In my experience, the type of default that co-owners are most worried about, failure to make a required payment, is extremely rare. Far more common, but still rare, are defaults related to usage of the shared property, such as damaging the property, failing to keep it clean, using it at unauthorized times or in improper ways, and altering or cluttering it without group approval. While it is necessary (from both a legal and an ethical point of view) to protect the rights and equity of each fractional owner even if he/she has defaulted, it is also important that a fractional ownership agreement give the group the power to deal with a default quickly and effectively. The group can always decide not to use all of its power if the circumstances warrant leniency, but the group should not be forced to be lenient if one member is ignoring the rules or putting the property o
Related Questions
- What happens if an Owner fails or refuses to discharge his or her obligations with regard to maintenance, cleaning, repair or replacement of items for which he or she is responsible?
- What happens if a provider fails to fulfill the contractual obligations such as safety?
- What happens if a Co-Owner does not fulfill their obligations?
