Look for Marc LaCouvée's monthly article in every edition of The Beacon Magazine (www.eyesonbc.com)!
WHAT IS A "FRACTIONAL INTEREST" IN REAL ESTATE?
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In order to facilitate the use of the fractional interests by the various owners, most developers establish an owners’ association or owners’ corporation to administer the use of the strata lot, maintain and repair the strata lot, collect assessments and pay expenses relating to the strata lot on behalf of the owners.
The organization of owners will generally be an association under the Society Act or a company under the Company Act. The owners’ association or corporation will be made up of the owners of the fractional interests. The members or the shareholders will direct the operation of the owners’ association or corporation, including the election of the board of directors.
Generally the owners’ corporation will hire a manager to carry out the various obligations of the owners’ corporation with respect to the management of the fractional interests.
As always, these articles are not meant to be taken as real estate or legal advice. Please be sure to consult your own team of professionals and do your own due diligence.
Next month I will talk about the legal structure and considerations for buyers.
If you are looking for more information about fractional interests, I would love to help you. You can reach me easily by phone (250-752-2466) or email.
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