Guidelines in Buying Shares or Membership Certificates in Resorts and Clubs

July 9, 2013 SEC ADVISORY GUIDELINES IN BUYING SHARES OR MEMBERSHIP CERTIFICATES IN RESORTS AND CLUBS BEFORE buying shares or membership certificates, such as timeshares, membership in resorts, golf, country and other clubs, the PUBLIC IS REMINDED to consider the following suggested guidelines: VERIFY: 1. If the shares or certificates are registered with the Commission; 2. If the broker/salesman is registered with the Commission; 3. If the issuer is financially sound; 4. If the work development is in accordance with the work program and timetable submitted by the corporation to the Commission; 5. The property on which the golf and/or club is situated must be in the name of the issuer corporation; ATcaHS 6. If the issuer is only leasing the property where its facilities are located, verify the terms and conditions of the Lease Contract. Said Lease Contract must be annotated on the title of the property; and 7. The price of the share/certificate must be that which is found in the Prospectus that is on file with the Commission. REMINDERS if you have already closed a deal: a. Your share/certificate shall be issued within 60 days from date of full payment; b. Membership in the Club is not automatic. The issuer Corporation has to approve your application for membership before actual sale/transfer of the share/certificate is executed; c. The issuer cannot collect membership dues unless the project is 50% useable as indicated in the prospectus except when the By-Laws provides a higher percentage; d. Know how much are the monthly dues or annual maintenance fees being charged. No increase can be effected unless a report under oath of such increase and the rationale for it has been submitted to the Commission; and e. In case of doubt call up the CFD at telephone No. 588-6103 or email your concern at [emailprotected].