Flexible legal structures

Choosing the correct legal structure at the outset is fundamental to the long term success of any Shared Ownership product. Whether it is a real estate based simple fixed week Vacation Ownership or Timeshare resort development, Vacation Club, Fractional Resort Property, Private Residence Club (PRC), Marina, Boating Club, Fractional Jet or Yacht Ownership Program, or Golf Club Membership, the importance of the legal structure should be at the forefront of any strategic and financial planning.

In whichever jurisdiction(s) the shared Ownership development or product is intended, there are a number of important questions that need to be asked, including:

• Is it simple to administer allowing you to focus on sales and marketing?
• Does it enable you to work across a variety of different jurisdictions, enabling both horizontal and vertical growth?
• Can it adapt to a variety of different product offerings e.g. fixed weeks / fixed unit, fixed week / floating units, split weeks, points, fractions, PRCs etc?
• Will your sales closure costs be minimized, making it easier for your purchaser to say yes?
• Does it provide proper consumer protection without hindering the successful growth and management of the business?
• Does it provide third party independent support to your lender?

These are just a few of the key requirements that a structure needs to be successful.

With over 30 years of experience designing legal structures using the trust model to support the needs of developers and lenders alike, FNTC clients benefit from an unmatched knowledge base to draw from which provides a number of benefits.

Benefits include:

• Proven system that can be implemented internationally, simply and cost effectively
• Mature, well-articulated trust laws in most jurisdictions and a Uniform Trust Act now enacted in whole or in part in over 20 states
• Recognized by all leading service providers within the industry including exchange companies and banks
• Lending credibility to the sales process by affording high levels of consumer protection
• Easier and simplified way for managing an exit strategy should you decide to sell all or just part of the business
• Sales closure process is simple and cost effective
• Easy process for issuing owner / member certificates, processing transfers, upgrades and resales
• Foreclosure process for delinquencies is faster, more cost effective and helps to recycle inventory quickly
• Provides for quality standards of the property to be maintained more easily over the long term
• Ensures agreements between parties are compliant before funds are distributed avoiding unnecessary disagreements and disputes
• Allows for the easy transfer of property assets to support market changes and reflect consumer demands

PLACE YOUR RESORT IN A TRUST TO:

• REDUCE TRANSACTIONAL COSTS
• INCREASE CONSUMER CONFIDENCE
• IMPROVE OPERATING EFFICIENCIES
• INCREASE YIELDS AND RETURNS
• MAINTAIN OPTIMUM FLEXIBILITY

For more information on how FNTC America can help your business please email FNTC America or contact by phone at (+1) 866 978 2571