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Club being given property

I am a treasurer of a club in the UK.  The members of this club all own apartments in a complex abroad.  We do have a constitution and rules but this matter is not covered. 

Due to severe financial problems, one of our members can no longer afford to pay fees that the club use to pay for repairs, legal fees, security etc, and just wants to walk away without fear of future liablilty.  He has offered his deeds to his property in exchange for clearing his debts. 

Is this legal?

Can the UK based voluntary club take control of his property?

Who will actually own the property ie will it have to be held in trust for members and what if other members also fail to pay and then ultimately leave the club? 

Thank you in advance

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By pawncob
05th Dec 2012 14:37

No problems

Yes the club can own the property, but you'll need Trustees to register the land in the club's name (depends on the country).

You'll also need the agreement of ALL members, since they will be taking on the liability as well as the asset.

 

Suggest you see a Uk solicitor specialising in xyzlands affairs.

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05th Dec 2012 14:43

Thank you for getting back so quickly - that makes sense. 

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11th Dec 2012 17:17

Could be a legal nightmare

Get heavyweight legal advice. Maybe put in a Delaware LLP or some sort of trust.

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