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Inside Timeshare

Fractional. What is it?

Fractional Ownership, is it just another word for Timeshare?

 

Well it depends on where you are and what scheme you have entered into. In the United States Fractional is regulated by Real Estate laws.

 

Generally a property is divided up into say  Four, with owners each having 3 months use. These properties may be Freehold or Leasehold with either 50 or 99 year leases. In the US the value of these properties tend to follow the values of the property market. It gives the owners a quality holiday home without laying out for a second home. These properties also tend to be on managed resorts or condominiums, so maintenance fees are usually applicable. The positive side to this is when it is time to give it up, it can be sold and if the market value has increased then thank you I make a profit.

 

The problem now comes with Europe, Fractional Ownership is governed by Timeshare law. It is the resorts that are marketing it, Club la Costa and Diamond being the biggest. So if it is subject to Timeshare laws, then obviously deposits paid within the 14 day cooling  off period applies, as does the selling of it as an investment.

CLCdri logo

During my research I have spoken to many people who have purchased Fractional, all have told me the same thing. They purchased to be rid of their timeshare, and the only way was to take on a fractional, owning several weeks for periods starting at 5 years up to around 20 years. At the end of this period the property would be sold and they would reap the rewards, then being free from their timeshares. Well to me this smacks of what a friend described as “A Pig In A Dress”.

pigdress

The property is going to be sold, but all fractional owners must agree. Did they all buy at the same time and for the same period?

 

If not how can any agreement be reached, also who has the controlling shares?

 

Somehow I cannot see the resorts selling off all the available Fractions, thus losing control.

 

So what happens at the end of this period, does the consumer revert back to their original timeshare?

 

This scheme is still in its infancy in Europe, it looks and sounds great with the slick, smooth, fast talking sales rep. But it does look as though it is not property you are buying but the Right of Use. In other words it seems that it is just another way of selling Timeshare. We have already seen another term take over from that dreaded word, Holiday Ownership.

slicksaleman

On the Club La Costa Members Blog dated 10th July 2012, it states that First National Trust Company who are the trustees of the Fractional Property Owners Club, said that “this model should never be advertised as an investment”. I wonder if the sales staff have been told this in training, or have they been told to ignore it? We have seen this with other aspects of timeshare sales in the past and look where that has led, litigation for misrepresentation and mis selling.

 

http://clcmembers.blogspot.com.es/

 

Is this just another scheme like points or floating weeks to fleece you of your hard earned money?

 

Only you the consumer can answer that, unfortunately by the time you actually find out you may be the loser of thousands.

 

If you have been to a fractional presentation or have purchased, Inside Timeshare would like to hear your story and your views. Even if you are happy with your purchase I am willing to publish your comments, unlike many other blogs Inside Timeshare looks for balance.

balance

A New Position For The Ex Enforcer of the RDO?

Further to the posts published on Inside Timeshare (16th March 2016) with regards to Alberto Garcia leaving Mindtimeshare and the RDO, it appears that the assumptions as to the reason may have been correct. In the end Alberto Garcia is indirectly to blame for the growth in the claims sector against timeshare. His posts attacking legitimate companies backfired, with many people realising he was defending the undefendable.

 

http://insidetimeshare.com/alberto-garcia-steps-down-as-director-of-mindtimeshare/

 

We know the industry has only itself to blame for its woes, but they employed him to act as “Spin Doctor”, now they are reaping the whirlwind. As we have seen with politics employing spin to hide the truth, it will always get you in the end.

spindoctor2

Further to this it appears that he has a new post with Holiday Club Finland. It is believed this new job involves ensuring OPC´s and sales staff  dissociate themselves with sending clients to the claims companies. Maybe even getting them to deny anything is going on, or that everything that is being sold is legal and above board.

 

We know that Calvin Lucock the CEO, sent out a letter to members stating that their contracts were legal and valid. It also stated that very few cases have been won and any litigation could cost the member heavily in fees to cover the cost of these companies defending themselves. More scare tactics!

 

http://insidetimeshare.com/holiday-club/

 

Is this another damage limitation exercise, designed to stop consumers from pursuing any action? After all if the RDO and these companies had taken notice of the regulations in the first place, consumers would not have the need to claim for misselling or misrepresentation. The EU Directives were put into place to protect both parties. Now we know that the RDO lobbied the EU heavily when these regulations were being discussed, but that was for the industries benefit not you the consumer.

 

Could it be Alberto Garcia is himself trying to repair the damage caused by his actions?

spindoctor3

 

Again time will tell, as we find out more it will be published here, informing you the owners of events as they happen. The truth will come out in the end, it always does!