Legal Question in Real Estate Law in Arizona

Re: buying property as a group

This will be complicated. I have done partnership agreements for yachts and have actually managed trusts for family ownership of vacation properties, and believe me there can be a lot of headaches. You will need to have a detailed written agreement. Your situation will be more complicated, not less, by the fact that it is family who owns the units. When people do not meet their financial responsibility, and sanctions come into play, there are conflicts. To avoid these, there needs to be carefully spelled-out written agreements, and an enforcement mechanism. What improvements will be made? What if some members want to sell? Who controls the management? What if people don't pay their share? How will use of the property be managed? What if there are disagreements? How will the disagreements be handled? How will voting be handled? What if someone gets a divorce, goes bankrupt, dies? Can they sell their share? Will there be rights of first refusal? Who will pay taxes and insurance? Who decides how much the assessments will be? Will there be an operating fund? Who manages that? Will the managers be paid for their time and expenses? If members don't pay, will their share be forfeited?

See an attorney and get this hammered out. You might want to have a meeting and discuss these issues in advance.

Hope this helps.

Re: buying property as a group

I would use an LLC to own the property. See a lawyer. The "certified document preparers" and online LLC formation services will not be able to draft an operating agreement to address the complexities you will encounter with this arrangement.