Fractional Ownership News

Fractional developers must comply with European Timeshare Directive says FSOTA

The Fractional and Shared Ownership Trade Association (FSOTA) says that fractional operators will have to comply with the new European Union Timeshare Directive, which will be implemented into national law by 23 February 2011.

Some countries, notably France, have implemented the Directive already, while others such as the UK and Finland, have recently issued draft proposals for new laws and several are consulting interested parties.

Once the Directive is implemented in a country where a fractional developer is currently operating or marketing, FSOTA is of the view that these developers will have to comply with the new law. “The implications could be far reaching as many fractional operations in the past did not fall within the scope of the 1st Directive or perhaps fell into what could be called 'grey areas' where they were outside the provisions of the law,” says FSOTA.

Under the general description of “Shared Leisure Real Estate”, fractional ownership of real estate for leisure purposes can best be described as usage rights that are granted to owners as a result of a shared ownership title or a shared right of use. In this description fractional ownership can also be described as ownership of multiple weeks or titles. FSOTA is firmly of the view that whilst fractional ownership comes in many shapes and sizes, in Europe the product will nevertheless fall within the definitions contained in this new Directive.

FSOTA members can obtain a detailed guide to the new Directive as well as national implementation of the laws once they are in place. Currently the association is monitoring developments within the 27 EU member states and lobbying on behalf of the industry wherever necessary.

www.fsota.org

28/07/10
 

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Your comments

Eric Gummers - 31/07/2010 18:31:17
The implemention of this Directive with its requirement for a mandatory 14 day cooling off period, disclosure and prohibibition on taking an advance payment during that cooling off period should not be any problem for the reputable fractional developer. It is a good opportunity to review and improve purchase documentation in accordance with best practice. Eric Gummers

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