Real estate ownership is a legal status in which a person uses and disposes of a real estate object but may not be the owner. It is important to note that ownership can be either fractional, where the object is owned by several persons, or complete. Each type of ownership has its own characteristics and legal restrictions that determine access and rights to use the object.

The main types of real estate ownership are:

  • Freehold. The owner has full rights to dispose of the property, including transferring it to other persons and changing the terms of use, for example, converting it from residential to non-residential premises.
  • Fractional ownership. The property is jointly owned by several persons who share the rights and obligations associated with it. The division includes the distribution of rental income and the need to coordinate real estate transactions between the co-owners.

Owners have the right to dispose of the property within the limits of their share, including the possibility of renting it out, using it for living, or running a business, if this does not conflict with the agreement with other co-owners or the law. Responsibilities include regular payment of taxes, payment of utility costs, and compliance with the requirements for maintaining the property in proper condition.

To minimize property taxes, it is important to consider the minimum ownership periods when selling real estate. For example, in Russia, the condition for selling without paying taxes is to own the property for 5 years, and only for some categories of properties will this period be 3 years.

Owning real estate is a profitable investment, but it is not without risks. For example, in fractional ownership, a downturn in the market will reduce the value of the share. If the decline continues, you may want to get rid of the asset, but doing so without the consent of the other owners will be difficult.