13 July 2009
NAEA INTERNATIONAL WARNS CONSUMERS ABOUT ‘DRESSED UP’ TIME SHARE SCHEMES
NAEA INTERNATIONAL WARNS CONSUMERS ABOUT ‘DRESSED UP’ TIME SHARE SCHEMES
Today, the National Association of Estate Agents International warned consumers to be extra cautious when looking to buy a house on fractional ownership.
As fractional ownership becomes more popular, many of the large established time share organisations have ‘rebranded’ their operations to try to compete. T
here are clear differences between time share and real fractional ownership schemes which consumers need to be aware of. In simple terms, fractional ownership gives potential buyers a percentage share of the property, whilst a traditional time share only gives usage for an allotted period of time each year with no claim to ownership of the property.
There is no legal definition of ‘fractional’ but there is of timeshare. But be warned, in many circumstances the way developer’s package “fractional” can mean that the schemes fall within the legal meaning of timeshare.
Richard Edgar, spokesperson at NAEA International, said: “Fractional ownership has become a popular choice for investors because it enables them to buy into a quality product which they may not be able to afford individually.
“Also because lenders tend to consider fractional ownership homes as ‘an appreciating asset’ loan applications can be easier to secure. “From the outset consumers need to be clear on the differences between fractional ownership and timeshare. The market place is full of different ownership options, many purporting not to be ‘time share’ when legally they are. “Consumers need to get their lawyers to check the contracts before signing on the dotted line - and check whether they have a cooling off period. Otherwise they may find themselves tied into a timeshare with no property rights.
“By choosing a NAEA International member you can be sure you are dealing with an experienced and professional agent. All agents operate under strict rules of conduct; members must meet certain standards relating to professional and ethical practice. “
ENDS
Editor Notes
Editor Notes:
About the NAEA International (Incorporating FOPDAC)
NAEA International is the International Committee of the National Federation of Property Professionals (NFOPP), is the UK’s leading professional body for estate agency personnel, representing the interests of around 10,000 members who practice across all aspects of property services both in the UK and overseas.
These include residential and commercial sales and lettings, property management, business transfer, auctioneering and land. The National Association of Estate Agents is dedicated to the goal of professionalism within all aspects of property, estate agency and land. Its aim is to reassure the general public that by appointing an NAEA member to represent them they will receive in return the highest level of integrity and service in both sales and lettings, for all property matters.
Each NAEA member is bound by a vigorously enforced Code of Practice and adheres to professional Rules of Conduct. Failure to do so can result in heavy financial penalties and possible expulsion from the Association.
www.naeainternational.com
For further information contact:
NFOPP PRESS OFFICE
Tel: 020 3128 8181
E-mail: press@nfoppmedia.com
