13 June, 2007


Timeshare Fraud. I read with interest in the Independent Newspaper that a rise in timeshare frauds is causing the European Union to legislate. The peak of the timeshare scam in the United Kingdom was in the 1980s. Since then, the British have long ago introduced legislation to regulate both the property and the market. The fraudsters have moved to Europe and the West Indies, and now, to Anguilla. Their scams are sometimes camouflaged under names such as “fractional interests” and “holiday clubs”. What is being offered is a sort of timeshare that has the advantage for the property developer that the purchaser does not actually get anything in return for his money. And, because the property is being “sold” at an inflated price to many purchasers, the return to the developer is huge, with little or no downside.

In Anguilla you can legally purchase and own a condominium. There is a law creating condominium interests in Anguilla. There are one or two registered, well-established, condominium properties. If you are offered an interest in a new condominium property, with no established history, retain a lawyer to write you an opinion on the validity of the title. There are condominium frauds out there in Anguilla. Government is constantly throwing off the island salesmen selling non-existent condominiums. You do not want to be one of the victims, I promise you.

If you are offered a timeshare in Anguilla, be warned that such a thing does not exist. No, there are no timeshare properties on Maids Bay, or on Shoal Bay, or on Rendezvous Bay, regardless of what you have been told. Timeshares do exist in many parts of the world, but not in Anguilla. You cannot acquire title to real property in Anguilla by contract. You cannot take title to time in a property in Anguilla. Only a law or statute can give you that right. There is no law in Anguilla creating title to time. No, in spite of what you have been told, you cannot hold a timeshare interest in real property by contract. You will not be able to enforce what you imagine your contractual rights are.

The latest scam is the sale of "fractional interests" and interests in “holiday clubs” or “private residence clubs. The sale of fractional interests in aircraft and works of art in North America is long established. Aircraft and art works are personal property, something the law treats differently from real estate. In some countries you can get a deed for a fractional interest in real estate. What works in the USA or in Canada is not necessarily legal in Anguilla. There is no law providing for fractional interests in real estate in Anguilla. No, you cannot get a deed in Anguilla to a fractional interest. If anyone offers to sell you a fractional interest in a holiday destination in Anguilla, you are being conned. Especially if you are advised not to retain an attorney to write you a legal opinion on the validity of title before you pay a deposit. That alone provides you with all the evidence you should need to satisfy yourself that you are being conned.

An interest in a private residence club in North America or South Africa is an interest in real estate. Ritz-Carlton has been one of the pioneers in North America. Typically, there you get a deed to your interest, and you can will it with your other real estate. In Anguilla, by contrast, you cannot get a deed to an interest in a private residence club. Only a law could give you a real estate interest in a “holiday club” property, or a “private residence club”. We have no such law in Anguilla. What you are being offered will only be a private contract, like buying a can of sardines. All interests in land are required to be registered in the Land Registry. This type of contract cannot be registered. The paperwork you will receive will be worthless. This type of arrangement will only be as good as its manager. When the club goes on the rocks, so too will your investment. In Anguilla, avoid it like the proverbial plague. Don’t say you have not been warned!


  1. When the Temenos golf course project was first announced, they spoke of selling fractional interests in some of their units. But today, there is no mention of this on their website, and visitors who post comments on the internet mention fractional interests or timeshares only at Ocean Terrace, the Harrington's projected project at Shoal Bay, and the big project at Rendezvous Bay Hotel. Has this aspect of their plan been changed? Maybe the Temenos developer knows something the others don't know.

  2. I find this at

    Ocean Terrace's highly attractive Fractional Ownership Program allows you to buy a beautiful home on Anguilla for a month every year for as little as $50,000. With the monthly Fractional Ownership Program, you buy the condominium for ONLY the month or months you plan to live in Anguilla. Put two or three months together and you have a home in paradise for a fraction of the cost of a private villa.

    With fractional ownership, units come fully furnished and you can move right in. As with a villa that you might own, you may rent your unit if you choose during the period of time each year you own. Importantly from a financial standpoint, because your purchased month is structured as a very long term lease (97 years), there is:

    * no alien landholding license required,
    * no government 17.5% transfer tax payable, and
    * no attorney's fees or closing costs.

    Why pay for time that you don’t plan to use and then worry about your home when you are not here? Both low and high season months are still available at Ocean Terrace from $50,000 to $95,000, although high season availability is becoming limited.

    Ocean Terrace offers luxury living in a Caribbean paradise - without any hassle and at a still affordable price.

    Visit us at Ocean Terrace when in Anguilla or contact Ambrose Fleming either by telephone (264-497-8043) or by using the Contact form for more information.

    "When you die, God and the angels will hold you accountable for all the pleasures you were allowed in life that you denied yourself" – Anonymous


    Justice Mitchell, what gives you the right to go againsts God and the angels? I shall pray for you.

  3. A visitor from Washington, DC posted this on anguillaforum.com two days ago regarding the proposed Shoal Bay development. The position of God or His angels regarding this offering is not known:.

    "Yes, visited the sales office and site. Asking US$5K just to get 'further information on pricing and reserve a possible spot for a unit.'"

  4. Alan has built a new, small building, on the beach. I believe it's west of the existing beach villas. He has hired some hot-shot American guy to flog the project.

    Ocean Terrace is located on the dirt road opposite Lone Star on the Long Path. You rumble down this road toward Long Pond. It's considerably larger than any other structure down there.

  5. In the Hubert era there was talk of timeshare saving AXA. Valentine Davis from Frangipani, who has SXM connections, was one of the biggest shouters for it.

    There was a guy, Topper, selling timeshare @ Shoal Bay. There was something about his operation (I think he got done for fraud in the States) which caused the GoA to react and announce that, after all, timeshare was not allowed or illegal. This would have been circa 1996. I do not know what AXA law says but I do remember that they had to pass a special law to allow for Condominiums (e.g. Carimar) so would have thought that a similar approach would apply to Timeshare.

    Topper ended up returning to the Caribbean a year or so ago and now has a bar/restaurant in Simpson Bay where "Bananas" used to be. "Bananas" was popular; his place is not as popular.

    Ocean Terrace is owned/developed by Ambrose Fleming, a successful timeshare seller when he was in SXM at Pelican and The Atrium. A lot of people liked him. I guess he decided to do in AXA what he knew best, whether in compliance with the letter of the law or not.

  6. The following is taken from:

    Joined: 14 Jun 2005
    Posts: 530
    Location: Rhode Island

    Post Posted: Tue May 22, 2007 10:50 am

    One option, if you want to be able to spend a month or two on Anguilla every year, is to do as we did - purchase a condo at Ocean Terrace for the time that you want to use it. Ocean Terrace is a small, quiet, almost new condo complex with only 11 units, each of which looks out over the Caribbean toward St. Martin.

    Two bedroom condos are sold by the month at prices ranging from $65,000 to $95,000 a month, depending on the season (one bedroom units are somewhat less). Since the transactions are really 97 year leases, you don't need an ALHL and there is no 17.5% transfer tax.

    It's probably not the best option for everyone, but it's been great for us - we love our home there. Please feel free to email me or send me a PM if you have any questions.


  7. The Aliens Land Holding Regulation Act states that no land shall be held by an unlicensed alien, and any land so held will be forfeited to the Crown. "Held" includes not only conventional ownership but leases. An exception is made for leases of less than one year.

    In addition to obtaining such a license, which is not a simple procedure and may take many months, lessees must pay stamp duty. The amount varies depending on the term of the lease. For 50 to 99 years it is 10% of the freehold value.

  8. Anguilla studies Cayman departments

    A delegation from Anguilla led by the Chief Minister Hon Osborne Fleming was in the Cayman Islands to attend the E-commerce readiness conference. While here, members of his team met with the Lands and Survey Department and the Department of Planning.

    Both departments made presentations and answered questions relating to our policies and departmental structure and the use of technology in conducting business.

    Leader of Government Business Hon Kurt Tibbetts said: “The Government here is pleased to offer advice to our fellow Caribbean countries as they shape their policies and implement technology measures.”

    The Cayman Islands will host the first Caribbean Pre-Overseas Territories Consultative Council meeting 27 to 28 June. This is a strategic meeting to discuss a Caribbean focused agenda prior to the London meeting.

    Heads of Government from Anguilla, Bermuda, British Virgin Island and Montserrat will attend this first-of-its-kind meeting.


  9. WHat about Sandy hill club? Is that a Time share/

  10. The use of the word "club" makes one wonder, but Sandy Hill Club advertises "not a timeshare - full title". They are selling what they call condos, with prices from US$240,000 to $420,000 -- far too much to be a timeshare. If the common areas become the joint property of the collective buyers, and each buyer has a deed to their unit after applying for an alien land holding iicense, this is likely to be a genuine condominium development.


Note: only a member of this blog may post a comment.