Avoiding The Pitfalls

Administration

There are a number of fractional schemes on the market and you should always take independent legal advice when considering purchasing a property using a fractional scheme.

Clients should seek out a reputable company that offers a full administration service to ensure legal compliance for your fractional purchase and to ensure that everything is operational and dealt with on a day to day basis. This should include :

• Property management agreements
• Property rules and regulations

We recommend that when considering a Fractional purchase you look for a scheme that does not have too many fractional owners per property. To make the most of your fractional property and for added peace of mind we also recommend that you consider a scheme that offers a full management package to include things such as:

• A full rental management programme
• A fractional ownership exchange system
• A full management and maintenance of your property

Buying Process

Fractional property purchases follow the same process as any freehold purchase. Legal advice is strongly recommended for all buying clients. Do your homework if thinking about purchasing a fractional scheme.

The Fundamentals

Clients should check the fundamentals of any fractional scheme offered by companies. They should include:

• Rights to investment returns
• Re sale and exit strategy
• Responsibilities for fees ( and how can they be increased)
• The ability to rent out the property

Dedicated professionals

As with any property purchase clients want to be secure in the knowledge that they are receiving the best advice at all times. Look for:

• Dedicated fractional sales professionals with extensive product knowledge
• Sound legal, financial and tax advice using only professional partners
• Companies that offer an extensive management and maintenance programme