Fractional ownership is a form of investment whereby number of different investors can share the ownership of a luxury property. With this arrangement each owner will have exclusive right of usage of the property for specific number of days in a year.
Investor can start small and see whether if its right for him/her, that is the beauty of fractional buying.Dubai has approved this concept and agreed to register this type of ownership by issuing individual tittle deeds.This will allow each investor in the property to have their rights to the property by DLD.All the legal procedures in place and all the owners are protected by DLD.
In case of default investor typically stands to lose 60% of the paid share amount
If investor delays his installment beyond the grace period of normally 60 days from the date when the payment due of %
8% is net profit
The investor has to inform and send notice to all the shareholders at least before 6 months of the date of expiry.
The operator will bear the service charges expenses during the operating period.
Investors are equally responsible if the maintenance work exceed AED 5,000
Investors shall not allow disposing of the property without informing the rest of the shareholders.
The operating part will take care of the utility bills during the open period
Compensation will be paid to all the shareholders for the remaining time period as per the original agreement.
AED 18 per Sq. ft.
Once the investor commits to buy the share, the buyer will select the unit as per his/ her investment and then the buyer will provide his documents and contact details to ARE. ARE will release OPT and the buyer should do the payment within 03 days. Once all the shares are sold, DF shall release developer OTP and SPA. Once signed SPA is returned from all the shareholders, the title deed will be released.
In such sales ARE shall be entitled to the standard brokerage fees of 2%
Although many people dream of owning a property in luxury areas, most of them cannot afford that type of property they want. Fractional Ownership provides the solution to these problems by allowing each co-owner to pay only a fractional of the cost with a convenient payment plan. Fixed ROI is minimizing the risk compared to single-unit buying.
With a timeshare you do not own a tangible asset but you are buying the right to use one or move properties at certain times. With fractional ownership, you are buying a percentage of the property. This fraction then entitles you to use the property for a certain number of days a year and unlike timeshare, you can transfer or sell your fraction on.