Timeshares

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!