What it means to have ownership interest in a property

As far as legal real estate terms go, “ownership interest” is fairly straightforward. Here’s what you need to know.

Interest = “a right to” 

Anytime you have “interest” in a property, it means you have a right to the property, whether it’s through ownership or a security. “Ownership interest” simply means that you have all of the rights that come with owning a property. Ownership interest is different from “security interest,” which is what your mortgage lender holds. Security interest means that a party can obtain ownership interest (or take ownership) of the property only if you fail to live up to your obligations as outlined in your mortgage contract. Unlike security interest, the ownership interest is the highest possible form of interest. 

What rights come with ownership interest? 

No matter what type of ownership you have in a property – whether you own all or part of it – you have certain rights to that property. As a holder of ownership interest in the property, your rights include, but are not limited to: 

• The right to use the property 

• The right to dispose of or sell the property 

• The right to be compensated for property loss or damage 

Keep in mind that the type of ownership interest you hold may limit the scope of these rights. For example, if you own property through joint tenancy or tenancy in common, you may not be able to sell or dispose of the property without the express permission of the other parties who share ownership interest in the property. You also can’t force them to sell the property. 

What responsibilities come with ownership interest? 

Responsible property-ownership includes paying property taxes and utilities, funding property maintenance and upkeep, paying HOA fees (if applicable), and making sure the property is insured.

What kind of ownership interest does Simpley offer? 

Simpley offers co-ownership in a property through a property-specific LLC with a maximum of ten owners. You may own anywhere from 1?10 to ½ shared interest in a Simpley. Because your co-ownership is structured through Simpley, you are protected if another owner defaults on their ownership interest. You also have the right to sell your interest in your Simpley after your first 12 months of ownership. Other co-owners also have the right to sell their interest in the property, but no one co-owner has the right to sell the entire property. Simpley rolls your utilities, property taxes, insurance, applicable HOA dues, and maintenance fees into your monthly operating expenses, simplifying your responsibilities as a co-owner.