Who manages the property after it has been erected?
The Developer will manage the property on behalf of all shareholders. Management services include inspection of the inventory list after each and every shareholder's visit, domestic service, maintenance, pool, jacuzzi and garden services, monthly bill payments, attendance of the Estate AGM on behalf of the shareholders, and updating shareholders on general aspects of the property.

Do I know or meet my fellow shareholders?
Yes. Firstly shareholders meet a month or two prior to the completion of the unit at a Shareholders' Meeting. This is the most important meeting, which all shareholders are urged to attend. Rules and regulations and the Shareholders' Agreement are the main priorities for discussion. Other matters include admissions and add-on's to the unit, the appointment of a second Director, domestic services, and actual vs. budget project costs. Shareholders will also meet the development team, architects, auditor and interior decorator. Thereafter an AGM will be held once a year.

What is the procedure if I want to sell my share?
You may at any time sell your share in the open market after first offering your share to the existing shareholders. Existing shareholders have 30 days to respond to the offer. The Developer also offers a 'once a year option to sell' service to shareholders. How this works: The Developer will announce that they will actively market the shares of shareholders who wish to sell and will take it upon themselves to pay for marketing material to get these shares sold. An extensive database of interested parties nationally and abroad is held for this purpose.

Can I rent out my un-utilised weeks, and does the Developer assist in finding rental tenants?
Yes. You may rent out your time slots to external parties with the consent of The Developer. A deposit, which varies per Estate, is required before any rental occurs. Shareholders do need to take full responsibility on behalf of tenants. The Developer also offers a rental service to shareholders, in which they advertise the whole year round, and not just specific weeks, to interested parties nationally and abroad. When a potential tenant is found, it is established which time frame is preferred - and if it falls within your timeslot, the Developer will give you a call and ask if you are interested? The proceeds will go to you.

Can I make use of finance to purchase Fractional Ownership (FO) shares?
Yes. The Developer offers a 60% bond from two of the major banking institutions at prime less 2 over 10 years. Due to the excellent track record of the Developer, the banking institutions allow bonds to be signed as limited surety. This means that shareholders sign surety only for the amount that they borrow from the bank. It also means that shareholders who pay cash do not have to sign any surety.

What happens if a fellow shareholder defaults on a bond payment or is not able to proceed with bond payments?
This is what we call the 'Zero Tolerance Zone'. If a shareholder defaults on a bond payment, the Developer will give him 7 days to pay the amount due. If the amount has not been paid within this timeframe, the Developer will proceed with the legal process of liquidating / sequestrating the shareholder's share at the value equaling the surrender value at the bank. This means that the defaulting shareholder will lose the 40% cash payment originally paid plus any capital paid off at the bank. This in return offers interested shareholders the opportunity to take up this share in equal shares. If, for instance, five shareholders are interested into buying the share, the share will be split up between them. The Developer undertakes to buy the full share if no shareholder is interested in buying the share.

What happens if, as a worst-case scenario, there is say a hole in the sofa on inspection date after a shareholder's visit?
The Developer will first establish whether it was due to negligence or an accident. If it was due to an accident, the Developer will replace the sofa at own cost so that the following shareholder does not have any negative experiences in his time slot. The Developer will then handle the necessary insurance claim. If it was due to non-negligence, the Developer will also replace the sofa, but will sort out the issue directly with the shareholder. The reason why the Developer does this is that they do not want shareholders to have any issues with each other. The Developer as the Third Party thereby overcomes any potential disputes between shareholders.

What does the levy include?
A whole breakdown is available per Estate. It normally includes estate levy, water & lights, rates and taxes if applicable, domestic service, structural and household insurance, cleaning material, DSTV, pool jacuzzi and garden services, provision for wear and tear and maintenance, auditors and management fees.

What is the value of the furniture included in the price?
At Mjejane Game Reserve, catering is for the upper end of the market and the furniture may vary from any amount between R400 000 to R500 000

How and when is furniture etc replaced?
Furniture is replaced more or less every seven years and linen once a year. Management provides for the cost of replacements within the monthly levy.

Who is responsible for maintenance and when does it occur?
The Developer will manage the maintenance process on behalf of the shareholders. Normally it happens once a year in a time slot when a shareholder is not able to utilize his timeframe and provision for the cost of maintenance is also built into the monthly levy.

Who will be the directors of the FO Company?
One of the Directors of the Developer will carry the responsibilities as Director of the FO Company up to the time when the unit has been fully completed or the first AGM is held. One of the other shareholders will then be voted in as Director of the FO Company at the AGM.

How do the voting rights of shareholders work?
Normally it is one vote per individual, no matter what his shareholding is. Shareholders can decide otherwise at the AGM if they wish the voting rights to be in relation to shareholdings.

Do all fractional ownership companies form their own companies?
Yes. Each and every Leisure Property forms its own Private Company. Thus, one FO Company cannot have any influence on another.

What happens if the project cost goes over/under budget?
When a project exceeds budget, all shareholders are requested to pay there pro rata portion in relation to their shareholdings for costs not budgeted for. Conversely, when costs are below budget, the surplus will be refunded to shareholders according with their shareholdings.

Where and to whom do I pay my monies to and what security do I have that it will be in safe hands?
All deposits will be paid into the Auditors' trust account. The Auditors will open a trust account for each and every FO Company, called a 'Third Party Administrators Fund' . This means that the Auditors will be the third party between shareholders and the Developer, and will handle all relevant payment authorizations on behalf of all parties involved. Before a specific project is advertised, the Auditors will receive a detailed breakdown of all costs involved in the project from the Developer. The Auditors will control the actual vs. budget aspect and will not allow any unauthorized payments. This creates a safe and controlled environment for investors.

What happens to my share on my death?
Like any asset, the share will go into your deceased estate, with transfer into the name of the stated beneficiary. If you have not specified a beneficiary, the executor has the option to sell to the share and split the proceeds between all of the beneficiaries. In this instance, the executor must first offer the share to existing shareholders for 30 days.

Is any transfer duty applicable?
Normally when you buy the share in your individual capacity, no transfer duty is applicable up to an amount of R500 000,00. When you buy the share as a CC, Pty Ltd or trust, a 10% transfer duty will be applicable on the value of the stand. When you sell your share, transfer duty is applicable on the fixed features of the unit.

What are the other hidden costs?
Like with any transfer of property, a Conveyance Attorney is obliged to attend to the transfer of the property into the name of the Purchaser and therefore costs will be applicable. The Developer normally negotiates a favourable discount obtained through a financial institution for the benefit of its prospective shareholders. When you make use of a bond, bond registration costs will also be involved.

When do I receive my share certificate?
Once the contract has been signed, the CM 42 has been signed, the purchase price has been paid in full and the transfer costs have been paid, the Auditors will issue the share certificates.

 Any Capital Gains Tax? Yes. The standard rates of CGT are applicable.

•      Scenario: Originally purchased share at R500 000. Sell the share at R600 000.
       Thus capital gain is R100 000.
•      If the seller is a natural person the following applies: The first R10 000 of the 
       capital gain is exempt. Thus 25% of R90 000 will be added to your personal
       income tax rate (e.g. 40%). Thus tax payable is R9 000.
•      If the seller is a legal persona the following applies: 50% of the capital gain is
       taxable at 29%. Thus tax payable is R26100.
   

Does someone pay for a 'lifetime' and are the rosters every year the same? If not, how do they change?
One must remember that Fractional Ownership is a fixed asset belonging to the registered owner. You will therefore pay monthly levies to the Director of your Fractional Ownership Company for as long as you are the registered owner in lieu of monthly expenditure.

Your ooccupation roster and how it changes.
The occupation roster in respect of Fractional Ownership interests is explained as follows: All the periods making up the Fractional Lines have been divided into 13 (thirteen) groups of 4 (four) weeks each and such group of weeks shall be known as a Fractional Line. For the purpose of identification, each Fractional Line is allocated an alpha character A, B, C, D, E, F, G, H, I, J, K, L and M. The Fractional Lines contain the weeks set out in the table of columns (identified by the numerals (1) to (13)), where each Fractional Line contains the weeks in the columns below the Fractional Line for the year.

Week 1 shall relate to the first Friday in the start year, and thereafter to the first Friday of each and every consecutive year. The week numbers from 1 thereafter shall follow consecutively as the weeks of the year proceed from Friday to Friday. For each year following the start year, each Fractional Line shall contain the weeks in the column numbered one greater than the previous year, except that the Fractional Line containing the Weeks in column (13) in the previous year shall then contain the weeks listed in column 1.
 

Is the buyer from for instance 'A' the solely occupant during these 4 weeks? Does he solely have access to all rooms? Or does he share the house with other buyers of 'A'?
Yes, you and or your guests will be the sole occupants during your time slots as allocated to you and under no circumstances share your fractional ownership privacy with other buyers of 'A' during the year of slot allotment allocated to you, before moving on in the following year, as under slot 'B'.