Stability Starts with Structure
The Palmallorca Co-Ownership model is built to be smooth, fair, and stress-free — even if unexpected issues arise with one of the co-owners.
That’s why we’ve designed a clear, respectful, and legally sound process in case a co-owner fails to pay their fair share of annual costs (cleaning, maintenance, insurance, admin, etc.).
Built-In Protection from Day One
When the company is created, each co-owner deposits an upfront buffer equal to 6 months of their annual shared costs. This acts as a financial cushion, reducing the risk for other owners if someone delays or misses payments.
What If a Co-Owner Doesn’t Pay?
If a payment is missed, the administrator takes immediate and discreet action:
- First, the co-owner is contacted personally to understand the situation
- A short grace period allows time to catch up or resolve the issue
- If needed, the co-owner can choose to:
- Rent out one or more weeks to cover the balance
- Sell one or more weeks voluntarily
Legal Rights to Protect the Group
To protect the other owners and the property:
- Each owner’s shares are secured with a pledge clause in the legal agreement
- Shares cannot be transferred or sold if any unpaid balance exists on the owner’s company account
- If no resolution is reached, the administrator may initiate a forced resale of shares to recover the debt — always seeking the best outcome for everyone involved
You Don’t Have to Get Involved
This system ensures:
- No stress for other owners
- No group discussions or drama
- No impact on the property or shared services
The administrator handles all communication and resolution steps. Co-owners remain protected and unaffected — just as they should.
Resale with Respect
If resale becomes necessary:
- Palmallorca and the administrator will assist in finding a new buyer
- Existing owners will be informed but not required to act
- Any resale follows the same legal and ownership rules as all transfers
It’s About Fairness — Not Punishment
Life happens. The structure is not designed to punish, but to protect the shared investment, ensure fairness, and keep the co-ownership enjoyable for everyone — for years to come.
