Buyer’s Q&A
What due diligence should I do before buying a fractional share?
Five due-diligence layers: legal (the home's legal set-up and ownership agreement); company quality (track record, resale history, owner feedback); property (condition, location, reserve fund); cross-border tax (home-country position); and personal fit. Together they give you complete confidence before you sign.
The short answer: Five straightforward layers — and COP's partner vetting has already done much of the groundwork for you. (1) Legal: have the company walk you through the home's legal set-up; read the co-ownership agreement (preferably with a lawyer). (2) Company quality: verify track record (years operating, transaction count); request resale history (average days-to-resale; price-vs-original on completed resales); seek owner feedback where possible. (3) Property: inspect during a viewing; verify reserve fund balance vs target; check refresh-cycle history and upcoming planned work. (4) Cross-border tax: engage a home-country / property-country specialist to model the tax position. (5) Personal fit: a place you'll love returning to, at a budget that sits comfortably. Together they let you buy with complete confidence.
Layer 1 — Legal due diligence
Three specific checks. First, ask the company to walk you through the legal set-up for this specific home, which differs by country and by property, and have your own lawyer review it. Second, read the co-ownership agreement in full (preferably with your lawyer) — pay particular attention to: voting thresholds for material decisions; resale process; special-assessment provisions and caps; replacement-of-management procedure; dispute resolution. Three, read the share-purchase agreement carefully — see SPA key clauses.
Layer 2 — Company quality due diligence
Five company checks. Years operating (5+ years suggests proven track record). Total transactions handled (proxy for operational maturity). Average days-to-resale on completed resales over past 24 months. Percentage of listed shares that have closed (vs withdrawn or sitting). Owner feedback where you can access it. Independent sources (trade press, Companies House filings, SherpaReport profiles) round out the picture.
Layer 3 — Property due diligence
Four property checks. First, in-person inspection during a property viewing — see inspection checklist. Second, reserve fund balance vs target — request specific numbers from the company. Third, refresh-cycle history — when was the last major refresh? When is the next planned? Four, special-assessment history — number and size over past 5-10 years. A well-kept home holds its value over a decade, and these checks show you how it's cared for.
Layer 4 — Cross-border tax due diligence
Three steps. Engage a cross-border tax specialist (your home country + property country) before signing. Model the specific share's tax position including: ongoing reporting requirements; treatment of any income distributions; capital-gains treatment at eventual disposal; estate planning implications. Confirm any wealth-tax thresholds (IFI for France; Patrimonio for Spain; equivalents elsewhere) — a share is valued at its own fraction, which often keeps owners well below them.
Layer 5 — Personal-fit due diligence
The enjoyable part. Is this a place you'll love returning to, year after year? Do the share price and annual running costs sit comfortably in your plans? Does around six weeks a year fit how you want to live? If the answers are yes, you've found your home.
What due diligence typically costs
| Due-diligence item | Typical cost |
|---|---|
| Cross-border specialist lawyer | €1,500-€5,000 |
| Cross-border tax specialist | €500-€2,500 |
| Property viewing trip (travel, accommodation) | Buyer's own cost; €1,000-€3,000 typically |
| Company verification (independent research) | Free (your time) |
| Total typical due-diligence spend | €3,000-€10,000 |
On a €300k-€800k purchase, this is a small fraction of the transaction value for complete peace of mind.
What you come away with
A clear picture of the home, the ownership rules, the running costs and your tax position — so you sign knowing exactly what you're getting, and can choose between homes with confidence.
Where to start due diligence
Co-Ownership Property's selection includes homes from partners whose documentation supports thorough due diligence. The FAQ library covers each due-diligence layer in depth.
Further reading
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