If you own a property share as a shareholder in a company which owns the property, then be careful if you wish to sell a share in the property. You should advertise the share in the property only, and not the fact that this involves buying shares in a company to achieve this.
In the UK, promoting or advertising any financial instrument, including shares of a company, is regulated by the Financial Services Authority. The penalties for non compliance are severe.
I knew about the restrictions on promoting the sale of shares in a company but it had never occurred to me that this could apply to people who were trying to sell a share in a property until I had a conversation with Brad Lincoln of Best Group last week.
Generally in the UK advertising a property share is acceptable and the means of ownership is then explained once the client has responded to the advert. Thus a property share is promoted publicly, but the invitation to purchase the shares is done privately.
There are many legal, financial, tax and country-specific issues that must be considered before buying fractional shares in property. For professional advice about fractional ownership relating to property in the UK or overseas, yours2share has arranged a special price with Best Group for an initial consultation. For further information, please contact me