The International Arm of the National Association of Estate Agents (NAEA) has issued warnings to vacationers regarding “dressed up” timeshare schemes.

According to the estate agent trade body, as fractional ownership gains ground, more and more timeshare organization will rebrand their operations to compete in the industry.

The NAEA explained the difference between fractional ownership and timeshares. The former gives potential buyers a percentage share of the property, while the latter allots a certain period of usage time each year with no claim to ownership of the property.

The NAEA said that there is no legal definition for ‘fractional’, but there is a definition for ‘timeshare’. This can pose several legal issues for the owners in the event that something goes wrong.

“Fractional ownership has become a popular choice for investors because it enables them to buy into a quality product which they may not be able to afford individually,” said Richard Edgar, a spokesperson from NAEA International. “Consumers need to get their lawyers to check the contracts before signing on the dotted line—and check whether they have a cooling off period. Otherwise they may find themselves tied into a timeshare with no property rights.”

Source: Introducer Today