Assetz to pay agent commission on failed developments

UK-based international real estate company Assetz is set to pay out agent commission on contracts for failed developments in a move to try and drum up more business for its new Santa Monica resort in Cape Verde.

The “Deposit Rescue Scheme” offers buyers who have bought units on any failed residential development anywhere in the world the opportunity to claim back their deposit in the form of a discount on a similar property on the Santa Monica Resort.

According to chief executive Stuart Law, the company has already signed deals with 30 investors where Assetz have mirrored the payment terms of the original purchase contracts and discounted the price according to the original deposit put down by the investor.

15% - 30% discount range

To make the economics of the scheme work, most of the deals done so far have been limited to buyers who have put down 15% to 20% deposits although the scheme offers some flexibility according to Law:

“If the buyer has paid a $50,000 deposit on a $100,000 property, we could offer them a $50,000 discount on a property priced over $200,000 as there is obviously a limit to the discounts we can offer. Realistically though we can help people who have lost up to 30% of the property price”, says Law.

As part of the scheme buyers are asked to put down a "negligible deposit" in the region of £10,000 to secure the discount.

"Realistic agent commission"

Law believes agents can benefit from the scheme by helping clients recoup some of the losses they’ve made in the past and is offering to pay “realistic agent commission”. The commission will not be paid on the “negligible deposit” but is available on future stage payments and on completion.

The Deposit Rescue Scheme is limited to a maximum of 100 units from a total over just over 1000. The Santa Monica resort is the first five resort on the island of Boavista in Cape Verde. A concise summary can be found here of via their website.

Source: Global edge

Advertise here