Fractional Ownership is the hottest new category of vacation home ownership, and is redefining the Real Estate market for second homes. It offers you an undivided interest in a home (real estate) and gives you a guaranteed period of use each year in a development or location that would cost you substantially more to purchase on a full ownership.

Fractional Ownership provides you with an undivided interest in the property as well as the right to use the property for a certain period each year. This means that you have an equity position in the property and participate in any increase in value. Time share programs only provide you with a ‘right to use’. You have no equity position and as a result time share participants usually lose interest in the property and cease making required maintenance payments resulting in risk to the other participants in the project. Very few time share investments result in a profit to the participants.

Fractional Ownership has the flexibility of the most exclusive timeshare resorts, combined with the ambiance and exclusivity associated with the individual ownership of a second home. This type of vacation ownership truly offers the best of both worlds. Fractional Ownership generally involves more sophisticated investors than those found in time share developments.

Fractional Owners have a designated period each year to make use of the property. Depending upon the location this will be a revolving periodbased upon whether you purchased a Winter or a Summer interest. For example, the Winter period is broken into six four week periods starting near the end of October and running to the beginning of April the next year. The periods are numbered 1 to 6, if a Fractional Owner selects Winter period #3 because it is available for the property that he/she is buying an interest in then he/she gets #4 next year, #5 the next, #6 the next, #1 the next, etc.

Ownership in these fractional units also typically comes with additional benefits such as owners being able to make use of the unoccupied units as often as they wish during additional "space-available times," as long as they make advance reservations and cover the reduced rental fee, if applicable. Fractional Owners of the same property are welcome to make arrangements between themselves concerning use of the property.

However, this is not a requirement as the interest and use period is the property of the Fractional Owner.

Absolutely. You control the use during your period and there are no restrictions on who may use it with your consent (Note: Time share programs generally severely restrict or deny this). However, you are the responsible party and any damage caused by your guests not covered by insurance will be your responsibility – the same as if you were the sole owner.

What we recommend is that you pay for your Fractional Ownership interest in cash. The ability to obtain mortgages in Mexico is limited and the costs can make it very unattractive. One way to obtain funds for your second home in Mexico is to obtain a Line of Credit on your home in Canada and use these funds for your investment. We have relationships with major lenders in Canada that will assist you in handling this investment for you or you can arrange the funds through your own bank or contacts.

The property will be insured for its full replacement value and insurance will be reviewed and updated on an annual basis. Any damage caused by an owner or his/her guests not covered by insurance will be the responsibility of that owner – the same as damage claims are covered in Canada.

The deed or title to each Unit involved in a Fractional Ownership situation is held in a Bank Trust (in the case of MVP developments, the Bank Trust is administered by Scotia Bank Inverlat. The agent bank in Mexico of Bank of Nova Scotia, one of the largest banks in Canada).

The respective Fractional Ownerships are registered by MVP using a simple arrangement that has the advantage of confirming title to the Owners plus allowing for a simple procedure to transfer or will Fractional Ownerships without involving expensive legal fees or probate costs. The Bank Trust is renewable for 50 year periods and represents the safest, simplest and most cost effective way to hold ownership in your second home.

Details of the ownership structure are made available to qualified investors for their review and the review of their professional advisors.

MVP and its representatives in Mexico are responsible for the management and operation of the property. Each property is subject to a management agreement that provides for payment of a management fee, maintenance fee, reserve, utilities, property taxes, etc. If you think of how a Condominium Corporation in Canada is organized and run you have the concept of how MVP operates the properties in Mexico. Costs/fees will vary from property to property and once the budget is established will be paid on a monthly basis.

Absolutely. Not only that but you can will it or give it away – it is your property/interest to deal with as you determine. MVP representatives will explain how this works to qualified investors and their professional advisors.

Yes. You control your own designated period of use and can make arrangements with other Fractional Owners of the property as you wish. All you have to do is notify MVP of the arrangement so the responsible parties for that period are identified. Failure to do so may result in you being held responsible for a period that you should not be. As indicated MVP is arranging for properties in several areas of Mexico. Trades will be available through MVP to other locations within the MVP group of properties. Such trades must go through MVP.

Yes. Your guests have the same privileges as you do, even if they are unaccompanied.

No. If available you may purchase more than one Fractional Ownership interest in distinct locations to give you even greater flexibility. Persons interested in full ownership are welcome to discuss their intentions with representatives of MVP.