Timeshare Trust Companies
It is being the trust companies who became involve in timeshare as a result of a problem which existing in Unincorporated associations which timeshare owners know as clubs. An association of people can be incorporated (say a company) or unincorporated like a cricket football or golf club. On the key deafferentations is that incorporated it’s a personality on its self (a person) and unincorporated it has no personality thus, is not a legal person, accordingly cannot own any assets, like the rights to occupy property timeshare.
The simple solution some say would be to incorporate the club.
A Property consists of 2 distant parties the equitable interest and the right to occupy it. (example you buy a property live in and own it, or you rent it out don’t live there but you still own it.
When timeshare developer elects to construct a timeshare resorts they will build holiday units (say apartments) within a resort and then consider how many rights will be created in each Unit. Taking the bi-annual systems, in a 2 calendar in one unit 104 weeks could be created therefore 104 in part bi-annual systems are available for sale. In single week systems you will only have 52 weeks. If you create a club to the rights acquire could extend membership in the club which will become an efficient vehicle to administrate all the obligations and benefits. If many owners become a member of a club the inventory (rights to occupy) can be pooled together and potentially managed more efficiently.
If a club is created and is unincorporated it’s not a legal person therefore, cannot hold property therefore, a trust is created whereby the members of the club agree to place the rights into a trust which will hold the assets unencumbered and for the owner.
Trust company’s therefore might be a wise move as it ensures the property and its rights and kept safe.
Worldwide there are several competing trusts who deliver a service to many consumers however mainly converse with the industry.