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 been employed 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 ownership interests in each luxury residence. Depending upon the nature of the property and the requirements of the owners, the mix can change from 4 to 8 owners. The specific number of owners is established during the formulation of each property and prospective owners should consult the Home Formulation Overview for details. Each owner will become a member in a Limited Liability Company (LLC) which will take title to the property on behalf of its members. Each owner will receive an undivided interest in the property which can be transferred via will or deed to a family member, or sold subject to conditions contained in the LLC Operating Agreement.
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 or fractional 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 fractional ownership interest 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 locations, rich in leisure activities. We feature prime locations in destination resort communities highlighted by championship golf courses, world class spas, fitness facilities, and numerous outdoor recreational activities.
Investment potential:As an investment in real property, it is possible that the value of your shared ownership may appreciate over time. Research from other geographic regions indicates that the value of shared ownership mirrors the value of the general real estate market in which the home is located. However, we recommend that your investment in a Resort HomeShare™ property be motivated primarily by the vacation experience, rather than any future appreciation in value. Decisions to purchase based upon investment should only be made in consultation with your personal financial advisor.
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 to the owner's previously requested time frames determined by the Priority Allocation Rotation (PAR)™ scheduling system and approved by the Property Management Company. Surplus time may not be rented to third-parties, but may be offered to friends and relatives.
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, giving you guaranteed access to your home for a specific number of weeks every year. The weeks you use your home can vary from year to year. 7. How often will I have exclusive use of the property?
Owners who subscribe to a nominal 1/6th interest will have a total of 8 weeks use per year. 8. What are the privileges of Resort HomeShare™ shared ownership?
Ownership entitles you to exclusive use of the home from 4 pm on your first day of residency until 11:00 am on your last day of residency. Residency may be by family members and guests (whether accompanied by the owner or not.) Rental of the property is prohibited, however, in order to maintain the highest standard of ownership experience for the members. 9. How is the operation of the residence managed?
Resort HomeManager™, an affiliate of Resort HomeShare™, will provide professional property management services to the Limited Liability Company, assuming full responsibility for ensuring that your home and all its luxurious furnishings are ready for you upon your arrival. Resort HomeManager™ will also maintain responsibility for assuring equitable use of the property, and will coordinate details of the annual meeting of the members of the Limited Liability Company.
10. What is the reservation policy, and is it easy to navigate?
Reservations are booked by sending requests to Resort HomeManager™ at predetermined times twice each year, well in advance of the upcoming season. A Priority Allocation Rotation (PAR)™ scheduling system has been established to ensure that requests are accommodated in a fair and equitable manner in the event that two or more owners request use of the same week.
11. How will I know if my reservation request has been confirmed?
Your reservation will be confirmed by letter and email. No reservation request will be honored unless it has been confirmed by the Property Management Company.
12. Can I change my reservation or exchange it with another owner?
Reservation requests may be changed any time prior to the deadline established by the Property Management Company. Once reservation requests are confirmed in writing by the Property Management Company, there is no guarantee that a request for a change may be arranged. However, the management company will attempt to facilitate a trade with another owner on your behalf, subject to certain conditions.
13. When may I occupy the home, and when must I vacate?
Arrival may be anytime after 4:00 pm on the first day noted on your confirmation letter (usually a Friday.) You must depart prior to 11:00 am on the last day noted on your confirmation letter (also typically a Friday.) The time between 11:00 am and 4:00 pm is reserved exclusively for the cleaning, inventory, repair and maintenance of the home.
14. 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.
15. Is there space available for the storage of my personal items?
A personal garage storage locker will be assigned to each owner, and will be accessible only to that owner. Storage of items within the locker will be the sole responsibility of the owner, and may be subject to certain restrictions elaborated in the Rules & Regulations.
16. Are animals permitted?
No animals of any type are allowed inside the home or upon the property.
17. Is smoking permitted?
Smoking is not permitted inside the home or garage. 18. 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 $250,000 and $350,000 depending upon the ownership interest. Each Resort HomeShare™ property offering is detailed in the "Home Formulation Overview" for that particular residence.
19. 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 the annual meeting of their Limited Liability Company, but responsibility for budgeting, assessment and collection of fees rests with the Property Management Company.
20. 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.
21. Can families share an ownership interest?
No. In order to better protect the property asset, and to enhance the overall owner experience, an ownership interest may not be shared between parties. Upon sale or transfer, an ownership interest must be conveyed in its entirety, and may not be divided in any way.
22. Can a corporation, trust or other legal entity purchase an ownership interest?
Yes, subject to the terms of the LLC Operating Agreement. 23. 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. 24. How can my interest be transferred or sold? Ownership can pass to another party subject to the provisions of the Operating Agreement. Resort HomeShare, Inc, as a licensed Washington State real estate broker, provides brokerage services to those who wish to buy or sell fractional vacation home interests within the state, and referrals to real estate brokers outside the state. 25. Does shared ownership represent a sensible investment opportunity? Most shared or fractional home owners purchase based upon the lifestyle of the vacation home and its environment. They are primarily interested in the convenience, luxury and quality of the vacation "experience," rather than in any future appreciation in value. However, initial research indicates that the value of shared ownership mirrors that value of the general real estate market in which the home is located. Investment decisions should be made in consultation with your personal financial advisor.