“Fractional interests” in
A fractional interest is a form of shared ownership. For years, friends have come together to purchase a holiday villa together. The resulting industry that has developed is less than 10 years old [link here]. Where it is legal to give individual titles to owners of a fractional interests in real property, each owner receives a deed, either in fee simple or for a lease. When you are ready to sell your shares, you can deed them to a purchaser [link here]. Owners are typically provided with specific rights of use and other entitlements, restrictions, and more importantly, monthly charges. This type of holiday investment has recently become popular in resorts in
I went on line and searched for Ocean Terrace Condos. I found them on The Anguilla Guide [link here]. Ocean Terrace’s websites offering the sale of fractional interests are here [link here] and here [link here] . Their website states that you can purchase a month “structured as a very long term lease (97 years)”. It states that the only cost is a fee of US$250.00 to "write up a contract." I could not believe it! They were still advertising the sale of fractional interests in apartments in
A further search of the internet for "fractional interests" in Anguilla came up with a number of additional pages. An early promotion from the Flag Resorts project at
It is simply not true that you can get a legal title to a fractional interest in fee simple or for a lease of a condo in
To repeat, fractional interests are not interests that are recognised under the Registered Land Act of Anguilla. The purchaser of such an interest in Anguilla will not acquire a title that can be dealt in, as in
The Aliens Landholding Regulation Act says that no non-Anguillian may hold an interest in real property in Anguilla without a Licence from the government of
The Stamp Act says that any purchase or transfer of a freehold or leasehold interest in real property in
I have asked the Anguilla Registrar of Lands, Gifford Connor, to explain if he is registering fractional interests. He has responded that the Land Registry is only permitting joint owners or owners in common, up to a maximum of four in number, to be entered on any one Land Register. The result is that any non-Anguillian who thinks he is purchasing an unregistered, unlicensed “fractional interest” in property in
Any investment property in Anguilla that advertises that a non-Anguillian can purchase an interest in property in
One would have to be brain-dead to believe that you could get legal title to property in Anguilla, or anywhere in the world for that matter, on payment only of a US$250.00 fee to “write up a contract”.
The old rule is that if it sounds too good to be true, it probably is.
Could it be simple ignorance at work here, or is it something worse?
Are investors really flying in to Anguilla, and buying these “interests” for upwards of a quarter of a million dollars
Are they innocents who are mistakenly relying on the Government of Anguilla to shut down misrepresentative schemes, as would happen in the US and Europe?
Do they mistakenly believe that
Or, do “investors” in Anguilla still check their brains at