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What's up with Magnolia Private Residence?
- Thread starter savanah32550
- Start date
gardening1970
Beach Fanatic
Re: Magnolia Cottages
I note some confusing terminology when reading this thread. Sorry for the long-winded response, but I touch and feel Florida timeshare law with great frequency and felt the need to chime in here.
Chapter 721 of Florida Statutes regulates "Timeshare Plans" whether physically located in or just marketed in Florida. A "Timeshare Interest" under Florida law can be a "timeshare estate" in which the purchaser is deeded a 1/51 interest (or any fraction) in the real estate, or a "timeshare license" which grants only use rights for a specific number of months/years. Florida is one of a few states which also regulates personal property timeshare plans, which covers use rights sold in cruise ships, RVs, houseboats, etc.
My main point here is that Florida statute does not separately define fractional ownership as a legally distinct product. This is a marketing term typically used to describe a larger timeshare estate interest, such as a quarter-share. Fractionals are generally more expensive because (i) they are typically higher end than traditional weekly timeshares, and (ii) the fraction of property sold is usually larger.
It is entirely possible to timeshare a single family home if zoning and underlying covenants permit (that's a big IF). SJ is correct that the more common way to accomplish the same goal is to sell shares or memberships in a corp or LLC which owns the house.
If you want to create a timeshare or fractional regime - or share use of a property owned by a single entity for this purpose - consult a lawyer who does this stuff on a regular basis. Even the best general practitioner may not know the pitfalls and nuances involved in structuring different types of regimes and regulations for use.
Thanks for indulging my dry and boring distinctions.
I note some confusing terminology when reading this thread. Sorry for the long-winded response, but I touch and feel Florida timeshare law with great frequency and felt the need to chime in here.
Chapter 721 of Florida Statutes regulates "Timeshare Plans" whether physically located in or just marketed in Florida. A "Timeshare Interest" under Florida law can be a "timeshare estate" in which the purchaser is deeded a 1/51 interest (or any fraction) in the real estate, or a "timeshare license" which grants only use rights for a specific number of months/years. Florida is one of a few states which also regulates personal property timeshare plans, which covers use rights sold in cruise ships, RVs, houseboats, etc.
My main point here is that Florida statute does not separately define fractional ownership as a legally distinct product. This is a marketing term typically used to describe a larger timeshare estate interest, such as a quarter-share. Fractionals are generally more expensive because (i) they are typically higher end than traditional weekly timeshares, and (ii) the fraction of property sold is usually larger.
It is entirely possible to timeshare a single family home if zoning and underlying covenants permit (that's a big IF). SJ is correct that the more common way to accomplish the same goal is to sell shares or memberships in a corp or LLC which owns the house.
If you want to create a timeshare or fractional regime - or share use of a property owned by a single entity for this purpose - consult a lawyer who does this stuff on a regular basis. Even the best general practitioner may not know the pitfalls and nuances involved in structuring different types of regimes and regulations for use.
Thanks for indulging my dry and boring distinctions.
Minnie
Beach Fanatic
Re: Magnolia Cottages
That is the rumor. They were doing some clean up around the site in Feb. when we were there.
That is the rumor. They were doing some clean up around the site in Feb. when we were there.
Georgia Girl
Beach Crab
Re: Magnolia Cottages
I heard that the developers of the Private Residence Club (the part of the development that is nearest Highway 30-A where construction has been abandoned) are in serious financial trouble and the contractor pulled off the project because they were not being paid. I also heard there are a lot of local suppliers who have not been paid. The Magnolia PRC sign has been covered up with a tarp. Does anyone know the real story?
I heard that the developers of the Private Residence Club (the part of the development that is nearest Highway 30-A where construction has been abandoned) are in serious financial trouble and the contractor pulled off the project because they were not being paid. I also heard there are a lot of local suppliers who have not been paid. The Magnolia PRC sign has been covered up with a tarp. Does anyone know the real story?
Paula
Beach Fanatic
I hope the problem gets resolved with that big building (and over time I believe it will, the question is how soon) because I think that's a very nice community. I like the style of the homes, the paved road (reminds me of the yellow brick road), and the layout of the streets. It's in a good location and it's very near a public beach access (I think - they may have a deeded beach access). I definitely wish the cottage owners the best and hope it gets straightened out soon. Personally, I wouldn't have built that big building, but people will get used to it and maybe it will bring something good. Shade from the sun in August when walking back from the beach? Coffee shop or other interesting food place on the first floor? Don't really need more of those because we have good ones already, but if the space is there and someone can make a nice business/living out of it and serve the people around it, I'd support it.
DD
SoWal Expert
iknowkevin
Beach Comber
I believe they have just about finished the Magnolia Private Residence Club. It should be interesting to see how the sales go. They are offering Fractional Ownership, not time share, on the condominium building. The main difference is that Time share gives the owner the right to time, Fractional Ownership gives you a deeded interest in the property. Most Private Residence Clubs are much nicer, offer more time, and offer more services than time share. From the documentation I have read, they have the potential of having a very nicely run property if it is managed correctly.
The cottages in the back were purchased by individual owners. The two other Private Residence Clubs along 30-A appear to have happy owners. There should be no reason this one doesn?t follow there lead.
The cottages in the back were purchased by individual owners. The two other Private Residence Clubs along 30-A appear to have happy owners. There should be no reason this one doesn?t follow there lead.
gardening1970
Beach Fanatic
Just to clarify - Florida statute does not recognize a difference between timeshare estate and fractional ownership. Both are regulated under Chapter 721 as "timeshare". While it is true that some timeshare developers offer contractual use rights only, many (if not most) developers convey deeded interests to the intervals sold, often 1/51 or 1/52nd interest in a condo unit together with a percentage interest in common areas. A fractional offering is simply the conveyance of a larger fraction, which equates to more days of use per year.
No disrespect intended. Looks like a lovely property. I received a nice mailer from the developer - I think it was something like a 1/6 interest starting at $160,000. Best wishes for a successful season!
iknowkevin
Beach Comber
I wasn?t sensing any disrespect. You are 100% correct that Florida law makes no differentiation between the two. There is good reason for having them both covered in the same chapter.
There are some projects that advertise as Fractional Ownership that appear to be nothing more than a dressed up time share property. On the other hand, when you look at the Private Residence Clubs on 30-A, the management, the interest offered (1/6, 1/8, excreta); surely you can see a difference in the Fractional Ownership properties that have been offered on 30-A to date and a time share.
There are some projects that advertise as Fractional Ownership that appear to be nothing more than a dressed up time share property. On the other hand, when you look at the Private Residence Clubs on 30-A, the management, the interest offered (1/6, 1/8, excreta); surely you can see a difference in the Fractional Ownership properties that have been offered on 30-A to date and a time share.
gardening1970
Beach Fanatic
I do not disagree. A 1/8 interest in a private residence club on 30A certainly feels like a different animal than a 1/52 interest at a typical Orlando timeshare property. Marketing will have a different feel also, even if regulation is the same.