With the increasing cases of timeshare scams nowadays, there is a new directive in UK which will soon be implemented. Such scams often victimize those owners who are trying to get out of their timeshare contracts. However, the Fractional and Shared Ownership Trade Association or FSOTA says that the 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 like France have implemented the Directive already while others such as the UK and Finland have recently issued draft proposals for new laws and several others 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 said new law. According to FSOTA, 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.
However, 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 to a vacation property. 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.