Legal Framework
Co-Ownership Model
Fractional ownership is the latest "trend" to market and acquire property and has always existed in the form of co-ownership. To enable potential purchasers to acquire a property at Greendale Farm a trust with vested beneficiary rights has been developed for joint ownership in the farm, based on a "fractional" concept. Here the Greendale Trust will be registered with the Master of the High Court and all new investors / purchasers will be appointed as co-Trustees.
The rights of the beneficiaries will be vested - thus not a discretionary trust. An equal amount of Unit Share Certificates will be issued to the number of land opportunities available. Here in the case of Greendale Farm 7 Class A Unit Certificate will be allocated to the 7 dwelling and exclusive use areas, while the balance of the productive farm comprising the vineyards will be 1 Class B Unit Certificate.
To obtain the benefits to the Greendale Trust, the subscriber will thus submit his / her offer by means of a subscription agreement (purchase agreement), in which he / she will contribute a loan account (purchase price). Attached to the Subscription Agreement will be the:
- Building Footprint Diagram and associated approved municipal building plan;
- Use Agreement;
- Architectural Design Guidelines & Farm Rules
The loan amount can / will only be refunded to the subscriber if:
- He / she in the future sells their rights and benefits in the Trust;
- Or the entire farm is sold (with the consent of all the Trustees);
The Subscriber will have the right and opportunity to:
- be appointed as a Trustee;
- Nominate his / her own Trust (as example) as Beneficiary;
- Enjoy the exclusive rights and a lease right to the respective footprint;
- Will be able to construct (within the architectural guidelines) and or occupy a dwelling on the designated building footprint area;
- Enjoy access to the remainder of the Farm, subject to the Farm Rules and regulations of the Use Agreement.
For further details on the Co-Ownership Model and Legal Framework please contact the Project Attorney Mr Meyer de Waal on Cell. 083 653 6975 or email meyer@oostco.co.za