The Trustee system is highly sophisticated and refined; it offers numerous advantages to both the resort developer and the purchaser, giving security and credibility to the product, as well as playing a key role in the industry.
The aim of a trustee system is to give complete legal security to the purchaser in respect of the rights of occupancy they have acquired in timeshare or fractional accommodation. This is usually achieved through the transfer of the legal ownership of the said accommodation from the developer entity to the Trustee, by using a non-trading owning company solely controlled by the Trustee or its nominees, hence protecting the consumers’ rights against the possible demise of the developer. The trust structure is also normally established by combining local property law with English trust law, providing maximum protection to the purchasers.
Once the legal structure of a project has been agreed upon, the Trustee will also get involved in drafting the relevant documentation such as the Deed of Trust, the Rules of Occupation, the Purchase Agreement, the Management Agreement and any other Disclosure documentation that maybe required. Once a sale is effected, then the Trustee will often take on a stakeholder role and receive the purchase monies on a dedicated Client account, to be held until the Trustee is satisfied that all release criteria have been fulfilled as per the terms of the Project Documentation; then only the funds in question are released to the relevant parties. This is shortly followed by the issuance of a Holiday Ownership Certificate in the name of the owner/member evidencing their rights of occupancy for their timeshare or fractional purchase.
It is also important to highlight that the role of the Trustee is on-going and continues long after a resort is sold out. One of the key functions of the Trustee is to ensure that the legal structure of the resort/Club is maintained and the rights of the owners and members are fully protected for the duration of the “life” of the Club, or Resort, which in some case can be in perpetuity!
So, in conclusion, the Trustee system is highly sophisticated and refined; it offers numerous advantages to both the resort developer and the purchaser, giving security and credibility to the product, as well as playing a key role in the industry. Because, no matter where in the world a resort is located, the Trustee system can provide all round protection to the end product and its users.
Hutchinson & Co Trust Company Ltd [“Hutchinson”] has been offering Trustee services to the shared leisure industry for over 25 years and is renowned for its professional, transparent and flexible approach amongst industry professionals and resort developers worldwide.
Hutchinson’s unparalleled experience in the shared leisure industry and the services that it offers have given security to consumers and added credibility to developers, due to its on-shore status, its ability to adapt its modus operandi to working with developments being sold in more than fifty countries worldwide and the intricacies of the various legal systems operating therein.
Hutchinson’s website is at http://www.hutchtrust.co.uk
FNTC Ltd is part of the IFG Group plc, a financial services company quoted on both the London and Dublin stock exchanges. Currently FNTC provides services to over 650,000 timeshare owners who have bought in resorts that are located in more than 300 resorts worldwide. These consumers can feel confident that their interests are being protected by a company that has provided trustee and administration services to the industry for more than 30 years.
FNTC provides the necessary commercial infrastructure for holiday and fractional ownership so that it is both legally and financially compliant find out more by going to http://www.fntc.com