Business Services
Holiday Ownership Services
Trustee system relating to Holiday Units
- Developer / Promoter appoints Trustee and enters into Deed of Trust.
- Trustee forms Owning Company to hold "rights of use".
- Developer / Promoter owns the holiday units and is responsibile for transferring the "rights of use", to the Trustee once the Deed of Trust has been signed.
- Developer / Promoter appoints marketing company.
- Marketer sells benefit of "right of use" to purchaser once "rights of use" have been transfered to the Trustee.
- Once the Trustee has control of the "rights of use" it issues Holiday Certificates to Purchasers on instruction from Developer / Promoter as evidence of their entitlement to use the Holiday Units.
- Holiday Owners use the Holiday Units.
There are a number of reasons why the Trustee System is beneficial to the Consumer
- If appointed by the promoter to do so, the Trustee can provide a stakeholder service, which ensures that the purchase monies it receives remain protected until such time as it is satisfied that there are sufficient weeks and/or points in the system which are secured and ready for immediate use. At this point, the Trustee is able to provide the consumer with a Holiday Certificate evidencing his holiday ownership entitlement. Even under a “deeded” legal system, which is possible in some countries, there is always a period, between payment for the week and registration with the notary or local Land Registry, when the funds are unprotected. This cannot happen under the Trustee System, provided all funds are paid directly into the Trustee’s client account.
- The Trustee receives and records confirmation that the developer has good title to the property and that he has obtained all relevant planning permissions and building licences. The Trustee also receives and records that there are no mortgages or other encumbrances on the property, which might prejudice the consumers’ rights of occupation.
- The Trustee takes control of the occupancy rights of the holiday ownership property throughout the period of the project, thus preventing the developer from selling or mortgaging those rights or doing anything else which might adversely affect the consumer’s enjoyment of his holiday ownership/club membership. It is usual for these rights to be held in a non-trading company for added security.
- The Trust System protects the consumers’ rights of occupation from any demise of the developer, once the trust arrangments have been fully completed.
- It is easy for the holiday owner to bequeath his holiday ownership/club membership without having to make a will in the country in which the resort or club is situated.
- The administration process involved in selling or transferring his holiday ownership/club membership to a third party, or upgrading it is considerably more cost effective for the consumer than under a “deeded system”. Under the deeded system referred to above, it is necessary for the consumer to be present before the notary in the country where the resort is situated or appoint an attorney to represent him and he will have to pay a much higher fee to the notary than the administration fee charged by the Trustee.