Fractional Property Ownership Club Points systems
In some circles this product was hailed as being the best way to own a holiday home.
The sales model is that a developer constructs an apartment/ villa and sells a part of it to a group of people say 2/4/6/8/12. They all share the ownership and equally pay the costs of maintaining it. In many instances the dates when it can be used rotates each year and to ensure that all have full usage of the bulging the part own and maintain. This model is perfect and bring together ownership investment and holidays.
That said, some resorts have morphed the idea causing fundamental problems which might not deliver the generosity expressed in the sales meeting.
This the more perverse Fraction Ownership Timeshare can be classed as “Fixed and “Floating” week system which have converged with the “Points” system. “Fixed” week are sold by a vender Supplier who were then obligated to immediately deed the week(s), to a venders nominated and preferred TRUSTEE.
Upon receipt on the deeded week(s), the TRUSTEE) re-deeds the week back to a company connected to the vendor who then exploits it.
Upon receipt of the week(s) the connected company the asserts, its right to use places it into a “pooled” inventory which is then made available to you and other club members.
The consumer is obligated to pay Membership fees for the fixed week right their connected company sold.
When those maintenance fees are paid, the Complainants are granted the right to buy an allocation of “Points” expressly noted in the sales document. In possession of those “Points” the Complainants can spend them on an undisclosed inventory the clubs assert it retains and if that inventory is available.
What can be averred is that Ownership of property is sold however, full control of it is taken away and vested in a TRUSTEE and for no considerations, who then re-donates it back to the CLC seller or its connected entity, again without considerations who, (with other inventory) donates it back to the Club.