Condenan a un banco a devolver 204.000 ? a 10 afectados por el timo de la multipropiedad. Las Provincias

La Audiencia Provincial de Valencia ha condenado a una entidad bancaria a devolver 204.000 euros a diez asociados de la Asociación Valenciana de Consumidores y Usuarios (Avacu) que adquirieron inmuebles en régimen de tiempo compartido, más conocido como «multipropiedad».

La sentencia confirma, en cuanto a los motivos de fondo, el fallo del Juzgado de Primera Instancia número 18 de Valencia que había dado la razón a Avacu en la demanda que interpuso contra el Banco de Santander Central Hispano (BSCH), y estima en parte el recurso interpuesto por la entidad bancaria en relación a las cantidades a devolver, que finalmente se concretan en 204.000 euros.

Asimismo, el fallo de la Audiencia Provincial anula los contratos de compra por considerar que Gardina S.L., la mercantil vendedora de las semanas de tiempo compartido, «actuó dolosamente al obtener el consentimiento de los afectados mediante el empleo de argucias y maneras engañosas».

Esto «indujo a los asociados de Avacu a celebrar el indicado contrato que, sin dicho engaño, no hubieran celebrado», añade la sentencia.

Como consecuencia de ello, la Audiencia Provincial considera que los contratos de prestamos concedidos por el BSCH para financiar las adquisiciones de dichas «multipropiedades» son «ineficaces» y condena a la entidad bancaria a devolver a las diez familias afectadas las cantidades que abonaron en tal concepto.

En un comunicado, Avacu ha informado de que hasta la fecha ha recuperado cerca de un millón de euros como consecuencia de la anulación de los contratos firmados por sus asociados con Gardina S.L.

Según la asociación, esta empresa, que se dedicaba a la venta de «multipropiedades» en un complejo turístico de Denia, llegó a vender, en varios casos, hasta ocho veces la misma semana del mismo apartamento, a razón de más de 17.000 euros por cada contrato semanal.

Durante años, los afectados tuvieron que devolver al Banco el préstamo concedido y hacer frente a los gastos de mantenimiento de los apartamentos del complejo turístico, sin disfrutar de los mismos.

La sentencia, que es firme, permite a los afectados no solo recuperar su dinero, sino también desvincularse definitivamente de soportar el pago de dichos gastos, según Avacu.

Javier CORREA

609572897

www.correaguimera.com

@jcorreaguimera

Timeshare. Anfi Beach. Recent rulings in favor of consumers.

I recently had the opportunity to know about several judgments, namely five, ruled by the Court of First Instance number THREE, of San Bartolome de Tirajana, in which his lordship, Judge Mr. Armando Garcia Castellano, changing his approach so far, declared null and void the contracts signed at the time by my clients -I acted in these trials in substitution of my colleague Miguel Rodríguez- with Anfi Sales SL and Anfi Resorts, SL.  The nullity is based on lack of object of the famous and so called «floating system». Indeed in Ordinary Proceeding numbers 942/2011, 1010/2011, 1215/2011, 1308/2011 and 1388/2011 the decision was the same: the contracts signed are null and void and the defendants have to return the money received plus interest from the filing of the demand.

It is in its THIRD Legal Ground where his lordship analyzed in depth these contracts that sells «floating weeks» in «floating suites» as he believes that they are contrary to Article 9.1.3. of Law 42/98. He thinks so because the contract does not specify the specific week, object of the contract, indicating the days and times that starts and ends as required by that article. Such failure is not a mere lack of information, it implies a lack of determination and realization of the object of the contract, which is clearly contrary to Article 1261 of the Civil Code. He also highlights the difficulties experienced by consumers in order to know when they can enjoy their purchased weeks. They must first go to clause eight of the Terms and Conditions of the contract and subsequently to Annex E. Finally it turns out that the week and the suite are always subject to «availability», which means that the execution of the contract is at the discretion of only one the contracting parties, in this case Anfi, and therefore there is not a true object. For these two final reasons the judge has declared null and void the contracts, having the defendants the obligation to reimburse the sums paid as the purchase price of the floating weeks.

It is equally true that, so far, this same court had ruled, on multiple occasions, against customers who wanted to terminate their contracts, so this change of position, along with the recent judgments of the Audiencia Provincial (Court of Appeal) of Las Palmas, is to be welcomed.

 

Fresh alert over timeshare cash scam by the Daily Express

TIMESHARE owners are being warned to be on their guard against dodgy firms which claim they can sell holiday-property shares or win compensation for previous timeshare resale scams, if they make an upfront payment.

Jennifer Conway, who has a Marbella timeshare that she has never visited but costs her £200 a year, was targeted by one such firm.

She was cold-called by Greenges SL which said it could help her to recoup cash she had already sent to a resale company in a bid to escape her timeshare contract. 

“The company called me out of the blue and said that it could get my money back on a no-win, no-fee basis but then asked for £1,200 for ‘translation services’,” said Conway, a 75-year-old former restaurant owner from London.

It is illegal for timeshare companies to ask for money up front.
Sandy Grey at the TCA

“The person I was speaking to seemed very convincing so I paid that amount by credit card over the phone.”

Fortunately, however, her daughter then decided to look into the company, which turned out to be on the Timeshare Consumers Association (TCA) blacklist.

Sandy Grey at the TCA said: “We know of lots of people who have paid Greenges more than £1,000 to sell their timeshares but still have them.”

On finding this out, Conway’s daughter immediately contacted the company and insisted it refunded the money as per its seven-day cooling-off period.

This has now been done. However, Greenges, which describes itself as “a professional mediation  company”, is breaking the law by asking for an up-front fee.

As of February 2011, an EU directive bans resale companies from levying charges until an actual sale has taken place or a contract has been otherwise terminated.

“It is illegal to ask for money up front. Greenges is therefore breaking the law, as well as failing to fulfil its promises,” said Grey.

The fact that it cold-called Jennifer Conway to offer its services is also a very bad sign.

Alberto Garcia, director at action group Mindtimeshare, said: “Legitimate law firms never cold-call people and the reason is simple, they lack your contact details unless you hand them over.”

Greenges, which declined to comment on Conway’s case, is far from the only dodgy timeshare-related company targeting UK timeshare owners.

The TCA has hundreds of firms on its blacklist, which is growing all the time.

“Most companies disappear after about 15 to 18 months, only to reappear under a new name,” said Grey.

“In a lot of cases, we find that it’s the same people running the same scam but under a new name.”

Worse still, the new companies often then target people like Conway, who have already lost out to them or their competitors. 

Here, we explain the murky, multi-million pound timeshare industry and how to avoid being caught out by the many related scams. 

How do timeshares work?

Timeshares, which became popular in the 1980s, allow people to buy a share in a property, often a holiday flat in a coastal resort, for a one-off sum.

They then have access for a set number of weeks each year, either for a fixed number of years or, more commonly, “in perpetuity”.

So what’s the problem?

Timeshares are often sold via high-pressure presentations, to which you might be lured by the promise of a free holiday.

Many owners are left feeling they were mis-sold as a result. 

For most people, however, the main issue is that the contracts, especially those that run in perpetuity, are very difficult to escape.

They are therefore left paying high and often soaring, annual management fees whether they use the holiday property or not.

“We looked at one big timeshare company and found that its annual fees had doubled in the last nine years,” said Grey.

“That’s the main reason why so many people are desperate to get out of their contracts at the moment.”

How do timeshare resale companies work? 

Dodgy timeshare resale companies will generally contact you promising to sell your timeshare, get you out of your timeshare contract or win compensation from the companies who have failed to sell your timeshare.

However, it is important to be on your guard whatever the story.

Many, for example, will claim to be lawyers or representatives of a government body in a bid to win your trust, while the majority will say they make no up-front charges, at first. 

Then they will claim that you have to pay for “services” which could include legal fees or tax, in order to complete the sale or compensation bid.

Once this payment has been made or the firm has got its hands on your card details, allowing it to drain your account, you will hear nothing more from them.

Is it possible to escape a timeshare agreement?

Timeshare contracts are notoriously hard to sell. Even legitimate timeshare resale companies such as TCA-endorsed Timeshare Shop are unlikely to be able to help because there are so many people trying to get out of them.

“There is no easy answer,” added Grey. “We believe that there are about 400 sellers to every one buyer in the market at the moment.”

Many companies will also impose a transfer fee should you find a buyer. 

If you can, the best option may be to hand ownership back to the timeshare organisation concerned, although not all of them will allow this.

By Jessica Brown
via express.co.uk

 

New judgment of the Court of Appeal in Las Palmas against ANFI

The judgment has date of 21st february 2013 and was notified to my colleague, Miguel Rodríguez with whom I have collaborated during the last three years on Timeshare cases, on the 8th of March.

It basically says the same as in its previous judgement of 28 september 2012, where the Court of Appeal considered null and void the contracts, based on numerous breaches of the Law 42/98 such as selling weeks in perpetuity. It considered the contract totally and absolutely null, not subject to prescription. There were two contracts involved in this proceeding, one of 7 dicember 2000 and other of 28 de marzo 2001. Now Anfi will have to return the money to the clients around 18.600,00 pounds plus the solicitors fees.

Another very interesting legal issue is that this judgment, again as did in judgments of 28 Sept and 19 Oct 2012, clearly states that is ilegal to receive any anticipated money, not only during the 10 days’ cooling off period, but during the three months referred to by article 11 of Law 42/98. This money cannot, under any circumstances, be received by means of a Trustee. This was what Anfi used to do using «Continental Trustees Limited» until the new Spanish Timeshare Law came into effect last March 2012, and the ban was already undisputable.

If you wish more information please contact me

Javier Correa
javier@correaguimera.com
+34 609 572 897

 

About the Timeshare, Holiday Products, Resale and Exchange Contracts Regulations 2010 (I)

Via lindermyers.co.uk
By Stephen Boyd

On 23rd February 2011 a new law has been produced to protect consumers of timeshare and holiday clubs.

The existing Timeshare directive only applied to certain Timeshare products and had a number of loopholes. These were exploited by unscrupulous companies and individuals in the Timeshare industry; leaving consumers as the potential victims of numerous scams.

Holiday Clubs for example fell outside of the protection afforded to customers by the Timeshare Act 1992 (later amended in 2003 and 2007). This means that if someone purchased a Holiday Club, they would not have the right to a cooling-off period that would have automatically applied if purchasing a traditional timeshare.

There have been similar developments in relation to products described as “fractional ownership” or in products which are in reality timeshares, but which relate to boats, cruise ships, or aeroplanes.

In 2008 a new European Timeshare directive was adopted and it was a requirement that all European Member States should bring this into law by 23rd February 2011. The purpose of the directive was to clearly give consumers greater protection.

A full copy of the directive can be viewed at EU Directive

This directive has now been brought into law in the UK with effect from 23rd February 2011.

A full copy of the law can be also be viewed at Timeshare Regulations 2010 

Key points from the timeshare new legislation

Key features are:

• Holiday clubs are covered in the cooling off period
• Shorter Timeshare contracts are allowed
• All types of holiday accommodation are covered including caravans or cruise ships
• Timeshare can be resold by the consumers
• Introduction of exchange services (i.e. some Timeshare owners pay an additional fee to join an exchange club and for paying that fee they swap their Timeshare week for other weeks at different resorts).

It will apply to all contracts entered into by consumers in the following circumstances:

• a)
  Where the contract has been concluded in any EU State, or
• b)
  Relating to any accommodation in an EU State, or
• c)
  Entered into by a trader who conducts business in an EU State.

The directive is also designed to completely shake-up the way that timeshare and timeshare like products are sold. Essentially, the key is that accurate and honest information must be provided inline with the new legislation. This includes information on cooling-off periods.

Another issue that has been addressed by the new Directive relates to the resale industry. In recent years there have been a number of complaints regarding individuals who have contracted with companies offering to assist them with the resale of their Timeshare.

Unfortunately in the past this has been another ‘scam’. This will change under the new directive to help to eradicate this issue for consumers.

Enforcement of new regulations

The new regulations will be enforced by the Office of Fair Trading and Local Authority Trading Standards Officers in the UK. Failure to comply with the directive could allow for consumers to bring a civil claim against the trader.

Ask for advice!

Consumers now have the time to take away any contracts to do with Timeshares and holiday clubs before parting with any money. We strongly advise that you take legal advice before signing anything.

About Advertising and pre-contractual information, Spanish Timeshare Law, nº 4/12 (Articles 7 to 10)

I will summarize, article by article, what the Law says about it.

Article 7 is about Advertising. It says that any advertisement or offer, as well as any commercial communication, has to clearly state where the consumers can obtain the pre-contractual information required under this Law. So information has to be upfront from the beginning.

Also says that any invitation to any promotional event or sale must clearly indicate the commercial purpose and nature of that act. The pre-contractual information provided in the Law has to be available to the consumer at any time during the promotional event. Very interesting point!

To finalize, this article leaves very clear that any timeshare right or any tourist long-term holiday product can not be marketed or sold as an investment.

The Article 8, regarding the information requirements, says that pre-contractual information has to be in paper or any other durable support and that it has to be provided to the consumer prior to the contract or its formalization.

Article 9 gives more specific information about what is the so called “pre-contractual information”. It says that has to be given “in good time” before the consumer accepts any offer or contract.

The seller must provide accurate and sufficient information in a clear and understandable way, of the following:

–         Identity, address and legal status of the trader or traders who are party to the contract.

–         Brief description of the product (eg, description of the property).

–         Nature and exact contents of the right or rights.

–         Exact period during which the right may be exercised under contract and, if necessary, its duration.

–         Date from which the consumer may exercise the contractual right.

–         If the contract relates to a specific property which is under construction, when the accommodation and services / facilities will be completed / available.

–         Price to be paid by the consumer for purchasing the right or rights

–         Overview of additional obligatory costs imposed under the contract, type of costs and an indication of the respective amounts (eg, annual contributions, other contributions recurring, special taxes, local taxes).

–         Summary of key services to be enjoyed by the consumer (eg electricity, water, maintenance, refuse collection) and the sums to be paid for such services.

–         Summary of facilities that can be enjoyed by the consumer (eg swimming pool or sauna). Are they included in the costs listed above? If not, specify what is included and what should be paid separately.

–         Is it possible to join a system of exchange? If yes, indicate the name of the exchange system.

–         An indication of the costs of membership or the exchange.

–         Is the merchant bonded to one or more codes of conduct and, if so, where can or can be located?

–         This information may also contain explanation on the right to cancel the contract without justification, which is of fourteen calendar days from the date of the contract.

–         During the withdrawal period, it is absolutely prohibit any advance payment by the consumer. The ban covers all compensation, including payment, provision of guarantees, cash reserve accounts, explicit acknowledgment of debt, etc.. It includes not only payments to the merchant, but also to third parties.

–         The consumer shall bear no costs or obligations other than those specified in the contract.

All this information will be included in the “Standard Information Form” that has to be signed by the consumer before signing any contract, and will be provided free of charges by the trader on paper or another durable support. This Standard Information will be part of the contract.

This information should be written in the language or one of the languages of the Member State of residence of the consumer.

The trader may publish the entire pre-contractual information on the website of the company, or on the website of a professional association or business of their choice, and are responsible for continuously updating the same.

Finally, Article 10 refers to the right of withdrawal and the prohibition of payments in advance, stating the before the contract is concluded  the trader shall inform the consumer, explicitly, of the existence of the right of withdrawal and the length of time for its exercise, and the ban on advance payments during that period, referred to in Article 13.

The very new issue is that the information has to be provided, in full, from the very beginning, the trader has the duty to inform the consumer on all this matter and it has to be written and signed being part of the contract (Article 11.2).

About the new Spanish Timeshare Act, number 4/2012, of 6th July.

This Law regulates the use in turns of turistic real estate (timeshare), the acquisition of long-term holiday products, their resale and exchange as well as tax regulations relating thereto.

This law substitutes the previous Timeshare Act, number 42/1998, that came into force the 5^th January 1999. Its enactment has been following the European Union Directive 2008/122/CE. Its scope is wider as it not only deals with the timeshare, as did the previous one, but also regulates matters relating to holiday packages, resale and exchange, issues that were outside the previous law.

The Act is divided into three parts or titles. The first, or Title I (articles 1 to 22), deals with general rules applicable to all types of contracts, either timeshare or vacation packages. The second part, or Title II (articles 23 to 34), is about timeshare properly. Here is basically included all the content of the old law 42/98. Finally the last part, or Title III (articles 35 to 37), is on tax regulations. Consequently what is really new is Title I that  deals with the Directive transposition along seven chapters. 

Which are then the main features of this Title I?

The most striking features are:

-The voluntary withdrawal period (cooling off) goes from 10 to 14 days (Article 12).

-It is absolutely forbidden any payment in advance, constitution of guarantees, reservation of money on accounts or any other explicit acknowledgment of debt in favour of the trader or third party, before the end of the withdrawal period (Article 13).

The clauses relating to these two points will have to be signed separately by the consumer (Article 11.4).

-The law is very strict on precontratual advertising and information that has to be provided to the consumer. Articles 7 to 10 deal with this issue. It is imperative to hand over, «well in advance», a standard information form which has to be signed by the consumer and will be added to the contract when this is signed. There is a standard form included at the end of the Law.

-Finally the contract must be in writing, on paper or on another durable support. It has to be in the consumer’s language, wherever resident in the European Union and in Spanish if the trader carries out its business in Spain. 

In future posts I will examine more in detail specific aspects of the Law, such as the cooling off period and its requirements, the payments in advance or the specific characteristics of the Duty of Information. 

 

 

Timeshare fees: trapped in a holiday that lasts for life – Telegraph

«All these owners want is to get out of these timeshare agreements, and a lot are taken in by the salesmen.»

Some pensioners are being forced to pay fees until they die, even if they are too old or ill to use their holiday properties. Some even opt to bequeath them back to the companies in their wills, so their children won’t be lumbered with ongoing fees.

Many timeshares were bought on holiday, in currencies other than sterling, meaning fees have risen as the pound has weakened.

Yvette Grant bought her husband, Michael, a timeshare as a surprise present for his 50th birthday 14 years ago. It gave the couple access to a two-bedroom apartment in Tenerife for one fixed-date week in April every year. They enjoyed several holidays in the resort, even buying an extra week and upgrading to a larger apartment.

They say the trouble started when the timeshare company, Paradise Club, was taken over by a larger firm called Club la Costa and fees started rising.

«The annual maintenance costs soared,» said Mr Grant. «When we initially took out the timeshare, we paid around £200 a year. This rose to £400 after we’d upgraded and took a second week. But after the new company took over, it doubled the maintenance fees, and with the weakened pound we now pay nearly £1,000.»

After going into semi-retirement five years ago, Mr Grant decided he no longer needed a three-bedroom apartment, nor could justify spending so much a year, and he approached Club la Costa to discuss selling.

Club la Costa gave him a list of companies that could sell on his behalf but most asked for upfront fees with no guarantee of results. «After I refused to pay without results, many of the companies lost interest,» he said. Eventually the Grants sold one of their weeks for £800, through a company called Worldwide Timeshare Hypermarket.

«It was much less than we’d paid but all I cared about was reducing the maintenance charges,» said Mr Grant.

Three years later they went back to the same firm to try to sell the second week but found it was not interested.

The couple advertised on timeshare websites but to no avail. Frustrated by the difficulties, Mr Grant offered to give the timeshare back to Club la Costa for free, so he could stop paying the annual charges. «I was told in rather firm tones by Club la Costa that if I stopped paying my maintenance charges they would take legal action for breach of contract.»

However, in a statement a spokesman for Club la Costa said: «We administer many different clubs, each with their own rules. In general, Club la Costa allows surrender on payment of one year’s management fees. The one-year management fee is to compensate the club for the loss of its income while budgets are readjusted. We do not threaten members or hold them hostage in the manner suggested.»

He added that the company administered the clubs on behalf of the members. «The members are represented by an elected committee and all annual fees are approved by that committee.»

He said that health and safety and tourist-licensing rules in the Canary Islands had become more demanding, which had resulted in many facilities and apartments being upgraded, leading to the increase in annual fees.

While the saga continued, Mr Grant returned to Tenerife for what he was determined would be the last time.

«I saw a family being shown around the apartment block by a salesman, enjoying their free week’s holiday while they listened to the hard sell. I waited until later that day and approached them. The company was going to charge the family £10,000, so I offered my week for £1,000. They bought it then and there.»

The Grants’ story is familiar. Of the 1.5 million timeshare owners in Europe, more than a third are from the UK and Ireland. Most resorts are in Spain; three of Club la Costa’s 28 resorts are in Tenerife, while it also has a resort in the Costa del Sol, where holidaymakers must cross a dual carriageway to reach the beach.

Diamond Resorts, the largest UK timeshare supplier, has 18 resorts in Spain and the multinational timeshare companies Disney and Marriott own more than 100 between them.

Elisabetta Sciallis of the Trading Standards Institute said that although the lifetime contracts might seem unfair, the timeshare companies were within their legal rights to demand annual payments.

«Many people were very happy with their timeshares, and continue to be so,» she said. «If, however, you can no longer afford maintenance fees – because you have been made redundant, you have retired or your partner has died – you have legal options that can lead to a discharge of the contract. Unfortunately, those who simply do not want to own the timeshares any more have to find a buyer.»

Timeshare selling tactics were notorious in the Eighties, with companies offering inducements to anyone turning up to their presentations. Resorts also use touts to lure people when they are already abroad with offers of an extra week’s free holiday. Club la Costa’s chairman and founder, Roy Peires, describes his business as «high-powered timeshare-marketing programmes».

Carole Humphries is all too familiar with these tactics. Mrs Humphries bought a timeshare with her husband, Glyn, while on holiday in the United States in Nineties. She said: «We only meant to pop in for an hour to see what it was about. Before we knew it we’d spent a lot of money. We felt under pressure to sign. That night we lay awake in bed thinking, ‘What have we just done?’ «

Although her family currently use their timeshare, she worries about the future. She said: «I don’t want to have to leave this financial burden to my children. What if they don’t want it?»

Complaints about the hard-sell tactics have led to a change in the law. In February, the EU ruled that any new timeshares or long-term holiday products with contracts of more than a year must be sold with a 14-day cooling-off period giving buyers the right to cancel. The seller cannot ask for any money within the 14 days.

Click here for a Q&A on your timeshare rights

via @Telegraph http://soc.li/AIIHREa

 

The Bristish Embassy in Spain talking about Timeshare

 

Timeshare ownership is well established in Spain with many respected companies, agents and resorts operating legally and fairly. However, there are also many unscrupulous companies, some of which claim to provide various incentives (including stock market investments and discounts on airfares and accommodation) when exchanging existing time-share ownership or taking out membership of holiday clubs.

Such inducements do not always materialise once a deal has been completed. If you are approached by agents operating such schemes, treat them with caution.

You may find it useful to read the timeshare fraud advice from Action Fraud, the UK’s national fraud reporting centre, run by the National Fraud Authority.

Advice to help protect yourself against timeshare fraud:

Be very wary of letters, phone calls or emails from companies you don’t know offering you business deals out of the blue

If you are contacted by phone, don’t continue the conversation

Don’t pass on confidential information to people or companies who say you’ve been chosen especially, or that you’ve won something

Never make investments without thorough research. Research the company and ask for several references

However much pressure the sales people put you under, never agree to anything on the spot. Refuse to sign anything then and there. Take the documentation home with you and sleep on it

Make sure an independent lawyer reads the contract before you sign it. Make a note of all the verbal promises you were given, and ensure they’re in the contract. If they’re not, refuse to sign

Ask about your cancellation rights and get them in writing. Remember that EU legislation gives consumers buying timeshare within the EU a 14 day cooling off period during which they can withdraw from the contract without any penalty. During the cooling off period, the seller cannot ask for, or accept, any money from the consumer

Remember, you can always walk out of the presentation. No one can make you stay, no matter what the salespeople may try and tell you

Think of buying a timeshare in the same way you’d consider buying any other investment property – is it worth the money? Research the market and discover the property values.

If you already own a timeshare, beware of resale scams where you may be cold called by someone claiming that they can market your timeshare for a fixed fee and, if it doesn’t sell, they will buy it from you, or they will offer to buy the timeshare if you agree to buy another one. You could end up losing money by making upfront payments or with a second timeshare that you do not want.

You can find out more about timeshares and your rights if you join a timeshare scheme in the European Economic Area (EEA) or sign the contract in the UK on the Citizens Advice Bureau’s Self Help website.

There are also several associations dedicated to timeshare issues in the UK and Spain, which provide help and specialist advice to consumers and information on regulation of timeshare companies in the EU.

Resort Development Association (RDO):

The RDO (Resort Development Organisation) is the trade association for vacation ownership across Europe.  As well as promoting vacation ownership to the media and other opinion formers, RDO works with governments and consumer associations around Europe to ensure that the interests of the industry and those of timeshare owners are safeguarded when new laws are introduced. One of its key priorities is to help protect owners targeted by fraudsters operating on the fringes of the industry – usually bogus resale companies, holiday clubs or even self styled ‘class action’ schemes. The organisation can also investigate complaints from consumers about its members.

Address: Hamilton House, Mabledon Place, Bloomsbury, London WC1H 9BB

Website: www.rdo.org

Timeshare Association (TATOC):

Manchester House, 84-86 Princess St, Manchester M1 6NG

Email: info@timeshareassociation.org                       

Website: www.tatoc.co.uk

Tel: 0845 230 2430

Timeshare Consumers Association:

TCA, Nornay, Blyth, NOTTS, S81 8HG, ENGLAND

Email: info@timeshare.org.uk  

Website:  www.timeshare.org.uk

Tel: 01909 591 100               

Fax: 01909 591 338

Afectados Multipropiedad:

C/ Sancha de Lara, nº 7, 2º -A. 29015-Malaga (Spain)

Email: correo@afectadosmultipropiedad.com 

Website:  www.afectadosmultipropiedad.com 

Tel: +34 952215859

You may also find it useful to read the advice on timeshare, holiday clubs and timeshare resale on the UK’s European Consumer Centre website.

(http://ukinspain.fco.gov.uk/en/help-for-british-nationals/living-in-spain/pro…)

 

Timeshare in Spain. A bit of history: Law 42/98

The “Tiempo Compartido” (Timeshare), misnamed as “Multiproperty”, involves the acquisition of a property between several buyers, who occupy this property, in shifts, during the course of the year.

A proportional amount  to the duration of the occupation and the time of year you choose has to be disbursed . Furthermore, by paying a fee, you can enter an exchange system that allows you to redeem the stay in the apartment for another in a different country.

In Spain, at last, a national legislation was enacted to be applicable to timeshare, it was Law 42/98 of 15 December, on the Rights of Timeshare Real Estate and Tourist Use and Tax Regulations, which came into force on 7 January 1999. The standard is the result of the transposition of the EU Directive 94/47/EC of 26 October 1994, which until now was the only rule that could be invoked in case of conflict originated in Spanish territory.

This law was an important step in strengthening consumer protection in this area of the tourism situation so conflicted.

Among the most remarkable features of the “Spanish Timeshare Act 42/98” are:

–          It applies to contracts signed from 7 January 1999 until 16 de march 2012, both inclusive.

–          The legal cancellation period for Spanish contracts is 10 days.

–          It applies in all Spanish land – including the Balearics and Canaries.

–           The purchase of «points» from a points club is not included in the law.

–          The law applies to rights of use for 3 years or more (up to a maximum of 50 years).

–          Cancellation must be in writing and sent by the buyer not later than «Day 10» – a fax is an acceptable method of cancelling. The address for cancellation should be on the purchase contract.  

–          Any advance payment from the buyer during the cooling-off period is prohibited..

–          The buyer is not required to pay any costs if he cancels within the cooling-off period.

–          Any related finance agreement will be automatically cancelled (at no cost to the purchaser) if the buyer cancels within the cooling-off period.

–          No mention of the words «ownership», nor “property”  may be made in the contract.

–          The purchase contract must be in the language of the buyer provide that language is a recognised European Union language.

–          The buyer will have to pay VAT in addition to the purchase price.

–          All owners must be registered – the cost of the notary (lawyer) and registration may be added to the purchase price.

–          Buyers must be given a comprehensive list of information – failure to do this extends the cooling-off period by three months. See the list below for the required information.

Information that must be included in a timeshare purchase contract:

 1. Date of contract and, data included in the deed regulating the use regime (date when the deed was executed, name of the notary, date registered in the Land Registry).
 

2. Nature of the rights that will be sold, and expiry date of the use in turn regime.

3. Description of the building, its location; description of the lodging (including registered data, and exact duration of the turn negotiated in the contract).

4. Where appropriate, it must be mentioned that either the construction of the real estate is already finished or that the real estate is still under construction. In the latter case, the current stage of construction, the completion deadline, building license, a quality statement of the materials used for construction, either the banker’s reference or the insurance as a guarantee of the end of the building site, and the buyer’s residence in order to communicate him or her the end of works, must be mentioned.

5. Complete price to be paid by the buyer, indicating the updating procedure (for the management fees) which, in general, will be made according to the retail price index. However the parties of the contract can arrange another updating method. Also, it must be mentioned the amount of taxes to be paid by the buyer along with an indication of the notary and registry expenses, where appropriate.

6. Information of rights of cancellation and unilateral solving

7. A statement that any payment in advance made by the buyer is forbidden during the cooling-off period or the right of unilateral solving.

8. The Community services and installations and conditions of use.

9. Possibility of participating in exchange services of periods of use.

10. Identity and place of residence, as well as registration in the Business Register of the owner or promoter; of the seller (indicating here the relationship between the owner and the seller at the moment the contract was signed) and of the buyer and of the third party in charge of the exchange service.

11. Duration of the use in turn regime, with a reference to the deed that regulates it.

12. Information on buyer’s rights in order to check the ownership and the charges of the real estate (the residence and the fax number of the relevant land registrar), in order to demand a deed and to register the buying of the right in the Land Registry.

13. Place and signature of the contract.

The buyer must receive a copy of the contract containing all the above information. 

Obviously, as is clear from the above, the law on timeshares is complex, and can often be different depending on where and when the contract was signed.For this reason, it is always best to seek legal advice before signing a timeshare contract. Similarly, if you are trying to escape a timeshare contract, legal advice is also recommended.