What is joint ownership of a property?
Joint ownership is when more than one person owns a share in a piece of real estate. In a second home, shares are usually divided by fractions or percentages based on the amount of money and/or sweat equity you invest in the home. The three main types of joint ownership are joint tenancy, tenancy in common and limited liability corporation (LLC). Most joint ownership agreements are drawn up by legal counsel to ensure that all joint owners are on the same page.Benefits of joint ownership of property
- It’s real ownership. Unlike a timeshare or a membership in a fractional vacation club, a joint ownership arrangement gives you all the rights and privileges that come with real estate ownership. This includes (but is not limited to) earned equity in the home, the right to sell (as long as it’s in keeping with the joint ownership agreement), and free use of the property according to your share.
- It cuts the purchase price. Rather than shouldering the full cost of a home, joint ownership of property lets you cut that cost in half – or even more. This can greatly increase your buying power and help you get more home for less money, bringing your dream home within your reach.
- It increases purchase opportunities. If you have good credit but not a lot of cash for a down payment, and a friend has plenty of cash on hand and poor credit, teaming up using a joint property ownership agreement might be the perfect way for both of you to secure ownership in a second home.
- It saves on expenses. The cost of a home doesn’t end with the purchase price. Insurance, taxes, maintenance, utilities and HOA fees stack up, and having one or more joint owners to share costs can significantly lighten your financial load.
- It relieves maintenance burdens. If you’ve ever wished there were two of you so one of you could meet the plumber while the other was at work, joint ownership of a property might be for you. Joint ownership lets you share the less-than-fun tasks of home ownership and maintenance with your co-owners.
- It keeps the house occupied. When a second home stays occupied regularly, it prevents maintenance issues that arise from neglect. With joint ownership of a property, someone is more likely to be around to notice when there’s a leak or a crack, or a fallen branch that needs attention.
- It lets you pay for what you’ll use. Joint ownership of a property keeps you from paying full price for something you’re only using part time.
- It offers a consistent vacation experience. Rather than scrambling to find open dates in a rental with good reviews or stuffing yourself and your luggage into a questionable hotel room, joint ownership in a second home gives you the freedom for last-minute trips and packing light. Plus, you’ll always know who else has been staying in your space.
Co-ownership with Pacaso
Pacaso uses a fully managed LLC model to give you all the perks of co-ownership of property, but without all the hassles typically associated with joint ownership agreements. Co-ownership of property with Pacaso offers:- Luxury. Pacaso curates stunning single-family residences in highly desirable second home markets, listing fully furnished turnkey homes.
- Privacy. Pacaso brings together up to eight qualified buyers to form an LLC; buyers may purchase anywhere from ⅛ to ½ of the property.
- Streamlined ownership. Pacaso offers integrated financing, property management and a scheduling app for a fully supported, streamlined and hassle-free owner experience.
