Resort HomeShare™ is a Redmond, WA based company that organizes and manages the "shared" or "fractional" ownership of luxury vacation homes, freeing the owners from the hassles of housekeeping, maintenance and repairs.
2. Who are the principals of the company?
Rick Lawton, President of Resort HomeShare™, is a 30 year veteran of the Puget Sound real estate market, with specialization in design, sales, marketing and merchandising of new homes and communities. He also acts as the designated broker for Resort HomeShare, Inc. Steve Jewett, Vice President of Resort HomeShare™, has served as marketing director, project manager and consultant to the building industry for 25 years, with primary focus on program and design development, finance, marketing, operations, design review and governmental approvals. 3. What is the ownership interest that is being offered?
Resort HomeShare™ typically offers 6 or 7 interests in each luxury residence. Depending upon the nature of the property and the requirements of the owners, the typical mix can range from 4 to 8. The specific number of owners is established during the formulation of each property and prospective owners should consult the Home Formulation Overview for details. 4. What are the advantages of Shared Ownership?
Cost effective:Many people believe that luxury vacation homes cost too much to purchase and maintain than can be justified by their limited use. Shared ownership is one way to equate the dollars you're spending with the amount of time that you will spend in your vacation home. National statistics show that people with second homes spend only 30 to 60 days a year at their second home. By buying a share in a vacation home, you can effectively pay for only the amount of time that you are likely to use your property.
Hassle-free:The lure of a vacation home is one of carefree lifestyle, unencumbered by household maintenance and repairs. Shared ownership provides the ability to show up and start relaxing and enjoying your vacation, without the hassles of traditional full ownership. A professional property management company assumes responsibility for ensuring that your home and all its luxurious furnishings are ready for you upon your arrival. At the end of your vacation, you can simply leave without worrying about the property.
Luxury appointments:Resort HomeShare™ homes feature more luxurious appointments than can usually be justified in traditional full ownership homes. Our professional designers and decorators incorporate excellent quality standards in the design, construction and furnishing of the home.
Prime locations and amenities:Our homes are located in the most desirable Northwest locations, rich in leisure activities, often hlighted by championship golf courses, world class spas, fitness facilities, and numerous outdoor recreational activities.
5. What are the disadvantages of shared ownership?
Since the property is professionally furnished and decorated, owners do not have the opportunity to add their "personal touch" to the décor. In addition, owners may not use the property at random times, and are restricted by the rules and regulations adopted by the owners and administered by the Property Management Company. This may include restrictions on pets and rental of the property to unaffiliated third parties.
6. How does "shared or fractional ownership" differ from "timeshare?"
Shared ownership is distinctly different from timeshare ownership. A typical timeshare involves the purchase of a week-long use of a small condominium during the same week or season every year. Shared vacation home ownership involves the purchase of a slice or "share" of a particular piece of real estate. The weeks you use your home can vary from year to year. 7. How is the operation of the residence managed?
Management of the property's business and affairs shall be vested in a Managing Member, initially Resort HomeShare, Inc. The Managing Member is directed to employ a professional property management company which will assume responsibility for ensuring that your home and all its luxurious furnishings are ready for you upon your arrival. No individual co-owner will bear responsibility for management or maintenance of the residence. 8. How often will I have use of the property?
The owners group of each property will determine the fair and equitable division of time for each individual owner proportionate with their membership share. ResortHomeManager uses the PAR® Schedule to determine the priority rotation of reservations which divides the year into two seasons and holiday weeks that are reserved by the owners in turn so as to insure an even spread of optimal use by each owner.
9. What is the reservation procedure?
One of the primary responsibilities of the property management company will be to oversee the fair and equitable use of the property. The management company will propose use schedules and reservation procedures which the owners will establish by majority rule.
10. What if damage or loss of any contents is discovered at the time of my arrival?
Any such damage or loss should be reported to the Property Management Company as soon as possible after arrival. You may be charged for damage or loss of contents if not reported promptly.
11. Is there space available for the storage of my personal items?
A personal storage closet will be assigned to each owner, and will be accessible only to that owner. Storage of items within the closet will be the sole responsibility of the owner, and may be subject to certain restrictions elaborated in the Rules & Regulations.
12. Are animals permitted?
Most Resort HomeShare™ properties do not allow animals of any type inside the home or upon the property. However, select homes may be designated "pet friendly" to accommodate animals, subject to the Rules and Regulations specific to the property. Please contact Resort HomeShare™ for more information.
13. Is smoking permitted?
Smoking is not permitted inside the home or garage. 14. What is the cost of ownership and what does it include?
The initial cost of ownership varies depending upon the value of the property and its furnishings. Generally speaking, Resort HomeShare™ targets spacious, amenity-rich vacation homes suitable for entertaining family and friends. Once furnished with luxurious furniture and appointments, the market value will range between $1,000,000 and $2,000,000. Individual "shares" for a fully-furnished residence typically range between $150,000 and $300,000 depending upon the ownership interest. Each Resort HomeShare™ property offering is detailed in the "Home Formulation Overview" for that particular residence.
15. What does the quarterly maintenance fee cover? Maintenance fees are assessed by the Property Management Company to cover taxes, insurance, utilities, spa and landscaping maintenance, and reserves for upkeep and replacement of furnishings. Maintenance fees are approved by the owners in their annual business meeting, but responsibility for budgeting, assessment and collection of fees rests with the Property Management Company.
16. Are there additional daily charges to use the home or the community amenities?
A weekly house cleaning fee will be charged at the end of your stay to prepare the property for the next owner. At that time, the Property Management Company will be responsible to inventory the furnishings and assess for any loss or damage. The only additional daily charges will accrue from goods or services that you order individually or through an outside vendor or resort-owned facility such as a restaurant or spa.
17. Can families share an ownership interest?
Families may share an ownership interest as long as one individual is designated by the group as the party legally responsible to act on behalf of the ownership group. This individual would be responsible for the submission of reservation requests, payment of quarterly assessments and cleaning fees, and voting on behalf of the group at the annual meeting of the owners.
Upon sale or transfer of the group's interest, the ownership share must be conveyed in its entirety, and may not be divided in any way.
18. Can a corporation, trust or other legal entity purchase an ownership interest?
Yes, subject to the terms of the Operating Agreement. 19. Is financing available to assist in the purchase? While financing may be available through select lenders that specialize in shared or fractional ownership purchases, three out of four fractional purchasers pay cash. Many find that home equity loans on their primary residence provide an easy, tax-advantaged way to help finance their vacation home. 20. Can my interest be transferred or sold? Yes, ownership may pass to another party subject to the provisions of the Operating Agreement.