Q. What is fractional ownership?
Fractional Ownership, or Shared Ownership, in real estate is a rapidly growing alternative to Whole Ownership designed so that each owner is deeded a specific interest (fraction) of a specific residence. Fractional ownership is a deeded property with the same rights as any other real estate purchase. Each co-owner owns a percentage of the property and is shown on the title and deed as an owner. It works very well for the family or individual that wants a vacation home or real estate investment, but does not want to pay the full price on a second home that they will only use for a few weeks a year.

Q. How is fractional ownership different than timeshare ownership?
The difference between most timeshares and most fractional ownerships is the extent of ownership and control given the users of the property. Traditional timeshares typically do not involve direct ownership of real estate, meaning that the users of the property do not actually own or control it. Modern fractional ownership involves direct ownership, meaning that each user has a deeded interest, and this means greater owner control. For example, a fraction can be mortgaged, sold, rented, or even willed to a friend or family member. Also, fractional deeded ownership in real estate historically has the same appreciation rate as whole ownership, whereas timeshares currently resell for an average of 50% of their initial cost. Shared ownership is a real property ownership right rather than just a usage right as with timeshares. In short this means that if the property price increases then you reap the benefit of any capital gain.

Q. Will fractional owners always stay in the same residence?
Yes, a fraction gives an individual ownership interest of a specific property and a deed is filed. Fractions are considered second home ownership.

Q. Is fractional ownership for me?
Although everyone dreams of owning a second home/vacation property, most don't purchase one for a variety of reasons including that they would not use the second home enough to justify the added expense. Fractional ownership provides a solution by allowing the purchaser to pay only a fraction of the costs and ongoing expenses of a second home, and share the unforeseen maintenance issues and economic changes with others. Also, due to the amount of time available to a fractional owner, there is less need to keep the property constantly rented as compared with whole ownership. To summarize, a fractional purchaser has a Lower Purchase Price, Lower Operating Costs, and a Lower need for Rental Tenants.

Q. Why is fractional ownership superior to full ownership?
Home ownership can be an expensive proposition. A luxury vineyard home can be a sizable investment and the carrying costs of mortgaging can make the investment out of reach. Along with the costs of purchase, you have operating costs such as property taxes, ongoing maintenance, insurance, etc. Additionally, even though the costs of full ownership continue 12 months out of the year, few people can actually enjoy the investment for more than a limited time period. With fractional ownership, you only purchase the time you actually spend at your luxury vacation home.

Q. What is the financial benefit of fractional ownership at The Ranch on Soda Rock?
The Ranch on Soda Rock is a one-time payment from $300,000 with annual payments for taxes, insurance, reserve fund contributions, and maintenance of approximately $985 per month. With the average price of vineyard/winery single-family homes (with year-round access) in the California Wine Country being in the multiple millions-it is obvious why families are choosing to purchase fractions of one estate.

Q. How are the operating costs split between the owners?
Running costs are shared equally between the owners and is billed monthly. This reduces the financial burden of owning an expensive property on your own.

Q. How do fractional owners reserve the use of their residence?
Reservations are not required for Fractional Ownership. It is a deeded residence. A schedule of occupancy is set amongst all of the property owners in advance.

Q. How often can we use The Ranch on Soda Rock?
Each fraction purchased entitles you to five (5) weeks of exclusive use every year. You choose the specific weeks you want to spend at The Ranch on Soda Rock and the schedule rotates each year so that you can experience the property at each season.

Q. How is our reserved time rotated year-by-year and how can we be sure to stay at the Ranch when we want?
The Combination usage system combines flexible and fixed weeks allowing fractional owners to choose specific weeks, which will remain permanently assigned to them, and participate in the rotational usage system for the other weeks. Flexible week selection is based on a rotation basis. For the first calendar year, Fractional Share #1 (the first to be purchased) will have first priority. Fractional Share #2 will have the second priority and so on. For the second calendar year Fractional Share #2 will have first priority, Fractional Share #3 will have second priority and so on. Each calendar year the order of selection will rotate in this manner until each share has had first priority after which the rotation will begin again. Fractional owners can trade usage periods with other owners or allow relatives and guests to use the home.

Q. Can we loan our share in the Ranch to friends or family, or rent the home?
Yes. If you are unable to use your weeks, you can let your family or friends enjoy it or rent it to members of the general public on your own. You must, however, provide the names of the occupying individuals to the property management team in advance. Should you wish to avoid the effort in renting out your share, the management company will be happy to assist you in this regard for a nominal fee.

Q. Can I sell my fraction of the Ranch on Soda Rock?
Your shares are your investment to keep within the family for life, bequeath in your estate or sell at your discretion. The sale of shares prior to project completion is subject to the terms and conditions within the ownership documents.

Q. How are ongoing property management decisions made?
The Ranch on Soda Rock and its Shareholders own all the property and buildings. You and the co-owners will make all decisions regarding the property.

Q. Is buying more than one share allowed?
Absolutely.

Q. What happens if I decide to sell?

The value of your share would be the percentage relating to the number of owners and this would equate to a percentage of the property value. You would of course be entitled to sell your share to whoever wants to buy.

For sales information contact Cynthia Palmer at 707.327.7232 or send us an email.

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