What if a fractional owner does not pay his/her dues or otherwise violates the co-ownership agreement?
Through 22 years experience advising co-ownership groups, we have learned that when a co-ownership group is well organized, and the co-ownership agreement is thorough, clear and fair, violations are extremely unusual, and legal enforcement is statistically very rare. But should a problem arise, the responsible owner would have a reasonable opportunity to make the late payment or cure the violation, after which the owners association would have the right to initiate a foreclosure-like procedure to force a sale of the defaulting co-owner’s share. Sale proceeds would be applied to pay any arrearages, penalties and sale costs, with the balance going to the defaulting owner. Where necessary, the process can be enforced through binding arbitration in the U.S. conducted under U.S. law.
Related Questions
- WHY WOULD AN OWNER OR REALTOR SELLING AN ENTIRE PROPERTY DEVELOP THE FRACTIONAL OWNERSHIP STRUCTURE AND AGREEMENT BEFORE MARKETING? WHY NOT LET THE BUYERS DEVELOP THEIR OWN FRACTIONAL AGREEMENT?
- Why would an owner or Realtor selling an entire property develop the co-ownership structure and agreement before marketing? Why not let the buyers develop their own agreement?
- How much will each co-owner pay in fees or dues to the fractional owners association?
