Tuesday, July 21, 2009

Rental Return and when it begins

As we have received a new wave of questions about the rental return we thought it might be eaiser if we make a few comments here about it.

1. When does the rental return begin for me?

The scheme will begin once you have fulfilled the main criteria stipulated in the rental return contract, specifically clause 8.

(Ruling period of time)

1. The assignment of the Residential Units to the Rental Pool Operation is agreed to for an initial period of 2 years counting from the date in which the Rental Pool Operation commences on the Resort.

2. The date of commencement of the rental pool operation is the date following which all the conditions are satisfied for the Residential Unit to enter the Rental Pool Operation.

3. The cumulative conditions to be adhered to by both the OWNER and the MANAGER to enable a Residential Unit to enter the Rental Pool are as follows:

a) The Residential Unit shall be constructed and inspected by the OWNER or his representative, in accordance with the provisions of the Promissory Contract of Purchase and Sale;

b) The purchase price of the Residential Unit shall be paid in full, including the furniture and equipment and the corresponding public deed of purchase and sale duly signed;

c) The present contract has been signed by both parties;

d) The receipt of the Property Purchase Tax (IUP) paid by the OWNER has been lodged with the MANAGER;

e) Copy contracts for the supply of services to the Residential Unit, namely electricity, water, sewerage and telecommunications have been lodged with the MANAGER and the Residential Unit is connected to such services;

f) The Residential Unit is fully furnished and equipped;

g) The Residential Unit has been insured against fire and a copy of the policy has been lodged with the MANAGER.

2. So will I receive my rental return 6 months after going to title deeds?

More or less. Let's say it takes you a couple of weeks to get the utilities connected and the fire insurance sorted out, you've paid the rest of the furniture and it is all installed. If this is the case then you'll get the first return payment 6 months and 2 weeks after going to title deeds.

3. When do I sign the contract?

The contract will be signed after you've signed the title deeds. Most probably we will sign on the very day that you sign the deeds, but deeds first as you have to be the legal owner to actually put the property into the pool.

4. What about the furniture payments? Do I have to pay even though my unit is late?

We do have to ensure that the furniture is ordered and will arrive on time. Clearly our timing with the property has been off but the payment terms for the furniture were 50% in advance and 50% at completion. This is not linked in anyway to timings on the property build. If you are not up to date with your payments then we can not guarantee that you can enter the rental scheme. So if you have only paid the first reservation fee and are holding out on the next bit for dates on property etc. then we would recommend you bring your payments up to date as soon as possible.

If you have any questions please get in contact with us.

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