However, if the owner for one reason or the other decides that they do not want to use the unit anymore, they are allowed to dispose it with the first right being that of the management company.
Owners of fractional units may choose to deal directly with their own clients for example when they want to rent out or sell off their units.
The managers explain that management companies get the first right to buy the property so that the property does not end up being undervalued simply because the seller needs to make a quick sale.
"The management company in most cases would discourage people from conducting business without passing through the management company because of the many implications that might accrue," states Mumbo.
New concept
The concept that is relatively new to Kenya but is steadily expanding with rapidity. Mostly, these kind of investments known occur in areas where buying land is not cost friendly. Some of the areas where fractional investments are common are prime land near cities and areas near the beaches.
Says Jackson: "This is relatively new in Kenya but in other parts of the world it is quite popular; take examples like South Africa, Europe, America and Asia where this concept has taken root."
This arrangement has been found to be common with foreigners who come to have their holidays in Kenya but want to avoid the trouble of looking for where to stay; they just buy the number of weeks they feel is enough for them every year and just jet in to use them.
However, Jackson says that it is also aimed at promoting domestic tourism, not only in Kenya but also in the wider East Africa region. He intimates that plans are afoot to extend into other parts of country from the Coast; with Naivasha as the next target.
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