Finance and legal

- generel information.

There are a lot of details to clarify in relation to finance, tax and legal matters, when assembling 21 families co-owning five vacation homes in Canada and the US. 21-5, with the assistance of our lawyers and tax accountants, has gone through an extensive due diligence process to ensure that our owners/families will not experience any unpleasant surprises.  


The vacation homes are located in several different areas of Canada and the US. This diversification helps to protect their combined value against any local real estate downturn - as opposed to buying a single property in one location, where your value would be 100% dependant on that locations real estate market.

In short, a 21-5 ownership share is less vulnerable to any local real estate fluctuations than owning a single vacation home in a given market. 

Further more, the operational costs are based on the local price levels and therefore also diversified over the five locations. 

Based on our extensive experience, we have developed budgets for the monthly operational costs for the owner associations and accordingly provides our owners/families with financial transparency and predictability. 

The monthly maintenance fees include, among other things:

  • Insurance
  • Property taxes
  • Property maintenance
  • Any strata/HOA maintenance fees
  • Administration
  • Accounting
  • Owner association coordination and support

Utilities (water, electricity and heating) and professional cleaning are covered by the individual family after each stay.

Every owner/family deposits one years worth of maintenance fees to their owner association's bank account. This way, all owners are protected should one owner not pay their monthly maintenance fees. 

If the owner association decides to upgrade and/or renovate one or more of their five vacation homes, this has to be approved at the annual general meeting. No projects are initiated until the funds have been raised. 

If major repairs are needed, but not covered by the owner association's contingency fund or insurance, the owners/families will equally pay 1/21 of the costs - which is obviously significantly less costly than being the sole owner of a property in need of repairs. Another advantage of co-ownership.




The 21-5 owner associations are very well regulated with a thorough contractual framework specifically developed with Canadian laws and tax code in mind. 

The legal structure for our owner associations has been developed in cooperation with expert lawyers and accountants in both Canada and the US.

The ownership structure is a Limited Partnership (LP) consisting of the 21 individual and equal owners/families.

As an example of the rules and regulation is, for instance, should a family not pay their monthly maintenance fees, the other members of the owner association can decide to expel that family from their association. In that case, the non-paying family must sell their ownership share. If that does not happen, 21-5 will take legal action to do so.

This might sound harsh, but for 21-5 it is more important to protect the association from bad creditors, including a non-paying member of a 21-5 owner association, than protect an individual owner/family with financial troubles. Having said that, we will obviously do our utmost to help an owner in distress to sell their ownership share at the best possible price. But the best interests of the co-ownership has our primary focus.

The 21 families are the legal owners of the five vacation properties

It is the 21 families, and nobody else, who own the five vacation homes. As a member of a 21-5 owner association you therefore become a 1/21 co-owner in the specific five properties. 


Right of first refusal

When we assemble an owner association, we meet with all prospective families to ensure the right fit. This approach began in Denmark where it’s called a “coffee meeting”, but in fact it’s more a vetting opportunity benefiting both parties. In case of a resale of an ownership share, we do not go through the same interview process with the potential buyer. However, the other 20 families in the specific owner association, where an ownership share is up for sale, will have first right of refusal to the ownership share at minimum the same price offered by any third party. This serves to protect the best interest of the owner association.

In relations to an estate sale, where either the spouse or children are the beneficiaries, the right of first refusal is not executed.

Read more about finance and legal in the following sections.


Scene from a terrasse of a 21-5 apartment on Mallorca, Spain


Contact 21-5 and we will help you fulfill your vacation home dreams.


email to or call 604 446 1188