What Are the Problems with Owning Undivided Fractional Land?
Owning or managing undivided fractional land can drain your time and resources.
With multiple owners, it's nearly impossible to keep track of who's going on to the land, for what purpose, with or without permission. Because every owner is a co-tenant, any one of them can legally go onto the land or lease it to whomever they want for any purpose. They do not have to notify the other owners or get their consent. The land you co-own could be used in a way that you do not want or even know about.
Dealing with the other owners of shared land can be difficult. Each owner has different needs and opinions, and agreeing on what to do with the land can be hard. Some owners may want to develop the land, while others want to sell and invest the income into something they would enjoy more.
It is difficult to prevent trespassers from entering fractional land. In addition to creating liability if they are injured, trespassers could also damage the property without your knowledge, leading to a reduction in value. Adjacent landowners too may cause problems by interfering with the land.
Often, one of the owners is taxed for the land and must try to collect taxes from the other owners. If taxes on the land are not paid, the government could take the entire parcel of land.
Most realtors will not contract to sell partial ownership interests. It is also close to impossible to hire a property manager for fractional land.
Finally, you are liable for accidents that occur on the fractional land you co-own. Learn more about the liability of owning fractional land. [Link to “Am I liable as a fractional land owner?”]
If you want to avoid the hassle of owning or managing fractional land, fill out the Real Property Questionnaire to begin the process of selling your partially-owned land to Landowner Solutions. [Link to Questionnaire]
Am I liable as a fractional landowner?
Every owner of undivided fractional land has liability. If a person is injured on land you own or manage, even if they are trespassing, you may be liable for damages. Any or all of the owners of the property could be sued, including those who only own a small portion of it.
A lawsuit could cost more than the land is worth. Plus, while you own the land, you must pay for insurance to protect yourself from liability, which can be costly.
To eliminate the risk of a lawsuit by selling your undivided fractional interest, fill out the Real Property Questionnaire. [Link to Questionnaire]
Should I keep my land?
When deciding to keep or sell your fractional land, it is a good idea to weigh the benefits and problems of owning shared land.
Fractional landowners generally do not receive the same benefits from land ownership that those with full ownership can. Few, if any, banks will loan money using fractional ownership as collateral because the associated legal problems make it an unacceptable asset. You must have total agreement from the other owners to develop the land, which is difficult to get.
Keeping your fractional land in order to will it to your descendants often causes more problems, as the number of fractional owners increases with each generation. That means your children would have even more trouble managing or selling the land.
If you decide that selling is in your best interest, please fill out the Real Property Questionnaire to learn more about the process. [Link to Questionnaire]
What Land Do We Buy?
We buy all types of rural fractional land, including cultivated, pasture, recreational and conservation land. We purchase land in any location, of any size, from any source. If you have mineral rights, but do not want the associated land, we will buy the land and you can keep the mineral rights.
Examples of the types of land we buy include:
- Fractional ownership farmland
- Fractional ownership agricultural land
- Joint ownership recreational land
- Hunting or fishing land bought by a group
- Fractional ownership of unused rural land
- Fractional interest donations
- Land that could be used for conservation
Learn more about how we assess the value of your fractional interest. [Link to What Is My Land Worth? article]
What Is My Land Worth?
The value of your undivided fractional land depends on its location and usage. Landowner Solutions uses a variety of public and private resources to determine the land's value.
As the first step in purchasing your land, we will appraise your land. We use several services to help us value each property before making an offer.
We buy land anywhere, but location will determine the value of that land. In addition, the value of fractional land is lower than land completely owned by the seller, because the purchaser must invest in resolving the problems associated with partial undivided interests.
Please fill out our Real Property Questionnaire to get an appraisal of your fractional land.
Does Landowner Solutions buy land with title problems?
You do not need complete records on the land you inherited. You do not even need to know much about it. Landowner Solutions will take on the task of researching your title and evaluating your property.
We will conduct a formal land title examination to establish who owns the land after you agree to the terms of the sale. Through this process, we will find out the names and locations of all of the owners, what each owner owns, and if there are problems with the title. Most of the projects that we work on have numerous title problems going back decades, but we're still able to complete the transaction. We are willing to invest time and money into resolving title problems because long-term land investment is our mission.
To begin the process of selling your hard-to-sell fractional land, fill out our Real Property Questionnaire.
