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What Is Equity Ownership

26 May 2015
 
 

Although many people may dream of owning a cottage in Muskoka, most either cannot afford the cost or reason they would not be able to use it often enough to justify the expense. The Muskokan Club offers a unique opportunity to make that dream a reality by giving you an equity interest in an outstanding property on one of the most desireable lakes in Muskoka.

WHAT DOES INTERVAL/FRACTIONAL OWNERSHIP MEAN?
The Muskokan Resort Club Inc. (the “Muskokan”) is a non-profit corporation that owns all of the land, the improvements to the land, the villas and their furnishings and all of the amenities and buildings on the property. When you purchase an interval, you are buying a share in the Muskokan and that share gives you ownership of a portion of the property’s 42 acres, villas, clubhouse and boathouse together with the right to occupy one of the villas of your choice for 5 weeks every year. One of the weeks is a fixed week every summer and the remaining 4 weeks rotate in each season – fall, winter, spring and one additional week. You will always be using the villa that you purchased. As the owner of a share, you can sell it at any time at any price, gift it to anyone or leave it to someone in your will. Your right to occupy gives you the right to use the Club for 5 weeks a year, allow friends or relatives to use any number of those weeks, rent any number of those weeks or exchange those weeks into the Registry Collection for weeks in other outstanding resorts around the world. (Please see below).

HOW IS THE MUSKOKAN GOVERNED?
As an owner, you are invited and encouraged to attend an Annual Meeting of all owners of the Muskokan and, at that meeting, the owners elect a Board of Directors. The Board consists of 6 Directors and 3 positions become open for election every year. The Board’s responsibilities include setting annual operating and reserve budgets, engaging the services of a property management company, ensuring the property is maintained, entering into various maintenance or service contracts and enforcing the provisions of any governing documents (the Interval Owner’s Agreement, the By-Laws and the Rules) among other things. The current Property Manager, Resorts Muskoka, reports to the Board and is responsible for overseeing the day to day operations of the Muskokan. The Muskokan also employs a full-time on-site Innkeeper, maintenance and housekeeping staff and a full-time individual involved in sales, rentals and various concierge services.

WHAT DO MY MAINTENANCE FEES COVER?
The Board sends out a budget to all owners in November of each year and that budget establishes a maintenance fee for each interval. Your maintenance fee pays for the operating expenses of the Muskokan including staff wages, hydro, heating costs, villa housekeeping costs, repairs and maintenance to the property, an annual audit, insurance, property taxes and other administrative expenses. The Club has had a Reserve Fund Study completed by a 3rd party engineering company. The maintenance fee also includes an annual contribution to the Reserve Fund which is used for major repairs and replacements to the infrastructure and buildings on the property and furnishings and fixtures in the villas. This Reserve Fund Study is updated every 3 years and the Board is following the recommendations of the engineer.

WHAT IS THE REGISTRY COLLECTION?
The Muskokan is a Member of the Registry Collection and your ownership of an Interval allows you to join this organization. If you cannot use a week or weeks, you can deposit them into the Registry Collection and receive points. You can then use these points to reserve a week or weeks at other resorts that are also members. These resorts are 5 Star resorts in the United States, Mexico, South Africa, Portugal, Italy, Britain, Ireland, Scotland and other countries. You can see these resorts by going to The Registry Collection. This site will also give you more information on how the program operates.

For more information about sales please contact sales@muskokanresortclub.com or call  866 960 9016
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