Q: I have a great condo by the ocean, and I want to sell it as a timeshare because I think I can get more money doing it that way. Can I do this? _ Mary
A: This is a very creative idea, but you cannot do it. Fractional ownership, or a timeshare, is more than just selling weeks of ownership. Besides all of the disclosure requirements, timeshare management is very different than just owning a condo. There are concerns such as management and maintenance, not to mention the issues with the neighbors.
Properties have certain designated uses to ensure that everyone gets the maximum benefit from their property. This is why you will rarely see a factory in the middle of a residential neighborhood, or a single family home nestled between two high-rise office buildings. Changing the designated use of a property is an involved legal and political challenge.
The condominium law bars the creation of timeshares unless the state-approved condo declaration specifically allows it. Very few do. Additionally, there is a timeshare statute with a basketball season's worth of hoops that must be jumped through to create a legal timeshare. To make it even more difficult, most counties and municipalities will restrict their creation, unless specifically allowed in their land use plan.
This is not to say that a group of people cannot jointly own property together if approved by the association. This sort of relationship is called a "joint tenancy."
People, whether related to each other or not, who jointly own property should have a written agreement that discusses the expenses, maintenance, and operation of the property.
This contract should also discuss what happens if the joint owners disagree about something, or have a complete falling out.
