Voasa

Developers who are ‘looking’ at entering the shared vacation ownership industry should be checking the following:

 

Are you a member of a regulatory body approved by the Department of Trade and Industry; not a self-appointed body?

 

What is the legal basis of your scheme:

 

i)    Sectional Title

ii)   Share Block

iii)  Other i.e. Lease, Voluntary Association, Trust, Club, etc.

 

Should the legal basis of your scheme be listed under (iii) above then regulation 6 to 14 of the Property Timesharing Control Act will apply.

 

Does your sales documentation comply with the Share Block or Sectional Title scheme? The provisions of Section 4 of the Share Block Controls Act govern the usage rights of a share relating to any accommodation scheme that is shared.

 

Does your sales documentation contain all the necessary documents i.e. Alienation Agreements, Use Agreements, Application for Club Membership, Memorandum and Articles of Share Block Companies, Body Corporate Rules and Title Deeds of the relevant property. Does your sales documentation comply with the relevant legislation?

 

Does the sales contract make provision for a deposit? Have you opened your trust account? Is the development complete? If yes, do you have the necessary Architects’ Certificate? See the provisions of Section 7 of the Property Timesharing Control Act.

 

Do you have the required zoning permission? – see the provisions of sections 5(1) (a) of the Share Blocks Control Act.

 

Do you have a Managing Agents Agreement?

 

Have your sales documentation checked by an attorney or financial advisor with the necessary knowledge of the relevant legislation indicated above.

 

Does all your advertising adhere to the provisions of Regulation 3 of the Property Timesharing Control Act?

 

Regulation 4 of the Property Timesharing Control Act will require you to make certain written information and documentation available for inspection at the location from which your development is being sold. Do you comply?

 

Shared Vacation Ownership sales transactions could be subject to VAT; ensure that all your reporting systems are in place. Have your sales documentation checked by a financial advisor with this point in mind.

 

Have you considered registering your development with a reputable Exchange Company?