Buyer’s Q&A
What questions should I ask before buying a fractional share?
Twelve questions across legal, company, property, financial and personal-fit dimensions. Use this checklist as a baseline; add destination-specific and company-specific questions as needed.
The short answer: Twelve questions give you a complete picture of any home, and a well-run company answers every one of them clearly. (1) How is the legal set-up arranged for this home? (2) Can I read the co-ownership agreement before signing? (3) What is the company's average days-to-resale on completed resales in past 24 months? (4) What is the company's special-assessment history on this property over past 5-10 years? (5) What is the home's current reserve fund balance vs target? (6) What is the annual fee history over past 5 years? (7) What is the rotation schedule for the next 8 years? (8) What is the cooling-off period in this purchase agreement? (9) Can I speak to existing owners? (10) What home-country tax position applies to me? (11) What is the company's commission on resale? (12) How does the set-up protect owners if the company ever changes?
The twelve questions — and what good answers look like
1. How is the legal set-up arranged for this home?
Good answer: a clear walk-through of the legal set-up for this specific home, with documents your own lawyer can review, and the home set up on its own rather than pooled with other properties.
2. Can I read the co-ownership agreement before signing?
Good answer: yes, here it is, please review with your lawyer. Bad answer: "we'll share at signing" — you need to review before committing, not after.
3. What is the company's average days-to-resale over past 24 months?
Good answer: specific number with track-record evidence (e.g. hundreds of shares resold, in just over three months on average). Bad answer: vague claims about "quick resale" without specifics.
4. What is the company's special-assessment history?
Good answer: specific record showing zero or small assessments over recent years, with explanation of any. Bad answer: deflection or vague claims about "rare" assessments.
5. What is the home's current reserve fund balance vs target?
Good answer: specific current balance and target (€X balance vs €Y target per the company's capital plan). Bad answer: vague claims about "well-funded" without numbers.
6. What is the annual fee history over past 5 years?
Good answer: year-by-year specific percentages (e.g. 2022: +4%; 2023: +6%; 2024: +5%; 2025: +5%; 2026: +4%). Bad answer: vague claims about "moderate increases" without specifics.
7. What is the rotation schedule for the next 8 years?
Good answer: specific schedule showing peak-week priority for each owner for each year of the 8-year cycle. Bad answer: vague claims about "fair rotation" without the actual schedule.
8. What is the cooling-off period in this purchase agreement?
Good answer: specific days from signing during which the buyer can withdraw without penalty. Bad answer: shorter than statutory minimum, or unclear withdrawal mechanism.
9. Can I speak to existing owners?
Good answer: yes, here's a simple way to connect with existing owners who are happy to share their experience.
10. What home-country tax position applies to me?
Good answer: company suggests engaging specialist; provides general framework; doesn't pretend to advise on personal tax. Bad answer: detailed personal tax advice from company without specialist input — companies aren't tax advisers.
11. What is the company's commission on resale?
Good answer: specific percentage (typically 3-6%) with breakdown of what it covers. Bad answer: vague or significantly above 6%.
12. How does the set-up protect owners if the company ever changes?
Good answer: explains how the home's legal set-up protects the owners' shares, and walks you through the replacement-of-management mechanism in the co-ownership agreement.
How to use the questions
Send the list to the company in writing during your due-diligence period and ask for written responses. Written answers are easier to compare across companies and harder to retract later. Credible companies are happy to provide them.
What good answers across all 12 indicate
Specific numerical answers across all questions, willingness to share documentation, structured processes for owner-to-prospective-buyer connection, and recommendation of specialist tax advice — together signal a credible, well-run company.
Where to find companies who answer the 12 questions well
Co-Ownership Property's selection only lists companies whose track record supports answering these questions transparently.
Further reading
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