Choosing the correct legal structure at the outset is fundamental to the long term success of any shared ownership development.
Whether it is a simple fixed week based timeshare model, a quarter share of a fractional property or a more complex Private Residence Club, the importance of the legal structure should be at the forefront of any strategic and financial planning.
In whichever jurisdiction the shared ownership development is to be located, there are a number of important questions which need to be asked, including:
- Is it simple to administer, allowing you to focus on sales and marketing?
- Does it enable you to work across a variety of different jurisdictions, enabling both horizontal and vertical growth?
- Can it adapt to a variety of different product offerings i.e. fixed week/fixed apartment, fixed week/floating apartment, split weeks, points, fractions, PRCs etc?
- Will your sales closure costs be minimized, making it easier for your purchaser to say yes?
- Does it provide proper consumer protection without hindering the successful growth and management of the business?
- Will it allow for quality standards of the property to be maintained more easily over the long term?
These are just a few of the key requirements which a structure needs to be successful.
Over 30 years experience of designing bespoke legal structures for over 300 resort developments worldwide, enables Global Federal Trust clients to draw on an unparalleled knowledge base which provides a number of benefits.
- Proven system which can be implemented internationally, simply and cost effectively
- Lending credibility to the sales process by affording high levels of consumer protection
- Easier and simpler for managing an exit strategy should you decide to sell all or just part of your business
- Recognised by leading service providers within the industry, including exchange companies and banks
- Sales closure process is simple and cost effective
- Easy process for issuing owner/member certificates, processing upgrades and re-sales
- Repossession procedure for delinquent maintenance fees is faster, more cost effective and helps to recycle inventory more efficiently
- Provides for quality standards of the property to be maintained more easily over the long term
- Ensures agreements are in place at the offset before funds are distributed avoiding unnecessary disagreements and disputes