Buyer’s Q&A
What questions should I ask before buying a fractional share?
Twelve questions across legal, operator, property, financial and personal-fit dimensions. Use this checklist as a baseline; add destination-specific and operator-specific questions as needed.
The short answer: Twelve baseline questions. (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 operator's average days-to-resale on completed resales in past 24 months? (4) What is the operator'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 SPA? (9) Can I speak to existing owners? (10) What home-country tax position applies to me? (11) What is the operator's commission on resale? (12) What happens if the operator goes out of business?
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. Bad answer: vague or evasive, which carries higher structural risk.
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 operator's average days-to-resale over past 24 months?
Good answer: specific number with track-record evidence (e.g. "98 days average across 47 closed resales in past 24 months"). Bad answer: vague claims about "quick resale" without specifics.
4. What is the operator'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 operator'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 SPA?
Good answer: specific days from signing during which the buyer can withdraw without penalty (typically 7-14 days in EU). Bad answer: shorter than statutory minimum, or unclear withdrawal mechanism.
9. Can I speak to existing owners?
Good answer: yes, here's a structured process to connect with willing existing owners. Bad answer: refusal — may indicate operator doesn't want owner feedback shared with prospects.
10. What home-country tax position applies to me?
Good answer: operator suggests engaging specialist; provides general framework; doesn't pretend to advise on personal tax. Bad answer: detailed personal tax advice from operator without specialist input — operators aren't tax advisers.
11. What is the operator'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. What happens if the operator goes out of business?
Good answer: explains how the home's legal set-up protects the owners' shares; describes replacement-of-management mechanism in the co-ownership agreement; provides reassurance about operator's own financial position. Bad answer: dismisses the question or provides vague reassurance without structural explanation.
How to use the questions
Send the list to the operator in writing during your due-diligence period and ask for written responses. Written answers are easier to compare across operators and harder to retract later. Most credible operators are happy to provide written answers; operators reluctant to do so are a meaningful warning sign.
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 operator. Vague answers, refusal to share documentation, dismissal of any of the questions all indicate elevated risk that warrants either more due diligence or walking away.
Where to find operators who answer the 12 questions well
Co-Ownership Property's marketplace only lists operators whose track record supports answering these questions transparently.
Further reading
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