FRACTIONAL OWNERSHIP PROPERT
Born in the USA in the early 90s, the “split” (so-called “Fractional Ownership Property”) is experiencing a significant spread across Europe, including France and Italy, especially with reference to “high-end” real estate of (as in the field of resorts and luxury hotels, including all related services such as golf courses, 24 x 7 concierge service, swimming pools, tennis courts, etc.) but also with regard to other luxury goods such as aircrafts and yachts.
Beyond the question “terminology”, what really is of interest to the investor is the actual position of their participation in the joint property (in terms of the actual value of the asset, the maintenance costs and the quality and effectiveness of the degree of control exercised over the asset owner and, above all, the number of participants). It is therefore important to provide customers with clear information that will enable them to obtain a precise idea of the advantages and potent
Leaving aside the academic discussion about the differences between the fractional ownership and the previous promoted “timeshare” option, what is required is the need for an agreement to be drawn up by specialist consultants experienced in arranging a system of harmonized provisions within the tax legislation, including regulations, of the country in which the property is registered, or the intended object to be purchased via fractional ownership. It is important with fractional ownership that the scheme is tailored to the specific needs of the prospective owners and devised in such a way as to be flexible yet at the same time robust enough to constitute a safe investment in all those cases.
Beyond the question “terminology”, what really is of interest to the investor is the actual position of their participation in the joint property (in terms of the actual value of the asset, the maintenance costs and the quality and effectiveness of the degree of control exercised over the asset owner and, above all, the number of participants). It is therefore important to provide customers with clear information that will enable them to obtain a precise idea of the advantages and potential disadvantages of the operation. It is also vitally important, to ensure that the customized contract document faithfully reproduces the objectives pursued by those participating in the initiative and offers maximum guarantees of “estate” in case of contingencies.
