A large number of other Timeshare Owners at Palm Beach Resort are the owners of timeshare weeks situated within, and as part of, Palm Beach Club in Tenerife (“the Club”).
The timeshare weeks were acquired at various times and do consist of various amounts of weeks in a variety of apartments.
These consumers purchased timeshare rights which are held on trust by the Club.
The timeshare rights comprise of fixed weeks in accommodation more particularly described in a Trust Certificate and Holiday Certificate which was delivered to each member immediately following their purchase.
Consumers immediately following the purchase of timeshare rights, received a Trust Certificate and Holiday Certificate giving them a proprietary interest in the weeks purchased.
Accordingly their freehold interest in their respective Timeshare Apartment/Units/Weeks is to be held on trust by a Trust Corporation indefinitely, or until 2036, when a Decision might be taken to dispose of the property and the proceeds to be shared equally between the Members of the Club, according to their respective Ownership Rights).
To protect the interest of the timeshare owners the Club was established. The day to day running of the Club’s affairs has been delegated to the Club’s elected committee pursuant to the terms of a Constitution which came into existence contemporaneously with the formation of the Club on 8th March 1984.
The terms of the Constitution (June 2013) includes provisions some of which are below:
- The Club is non profit making, established to “secure and protect for its Members the exclusive rights of occupation for specified periods of each year….” (Clause 3 – Objects).
- Each Holiday Certificate shall entitle each member to occupy the Apartment for the purposes of a holiday during the Holiday Period in each year.
- The Apartments are defined as those Apartments situated at Palm Beach Club in Tenerife, as more particularly described in the First Schedule of the Constitution (Clause 6).
- The Apartments are registered in the name of Tenerife Developments Limited, who holds the Apartments on Trust for the members of the Club (Appendix 1 of the Constitution).
The consumer place a significant amount of value on these timeshare weeks and the amenity it provides her them in respect of their respective) annual holidays at the destination and accommodation of their) choice.
For the reasons set out above consumers have a proprietary interest in their respective Apartment/Units and Weeks).
The above is the position in respect to the consumer rights after the constitution has been applied to the numerous questions raised by consumers.
Despite the lawful ownership, consumers received a notice convening the Club’s AGM in Brighton on 4th July 2014.
Consumers became extremely concerned that the Club (through its Committee) is proposing to pass a resolution which (if implemented) will deprive consumers/members of the Club of their timeshare (and freehold interest/ownership) rights.
In particular the proposed Special Resolution would, if implemented, involve the unilateral imposition of a floating time system which would extinguish our client’s interest in their timeshare.
Special Resolutions 2 and the remainder, would, if implemented, involve the disposal of all Owners, of their respective freehold interest and ownership.
Having carefully considered the terms of purchase agreements and the Club’s Constitution, Special Resolution 1, and others
If passed at the AGM and subsequently implemented, this would be an unlawful infringement of the consumer’s timeshare and freehold ownership rights and a repudiator breach of contract.
Furthermore the Committee, (if it allows any of the Special Resolutions to be passed), will be acting unlawfully as what was being proposed is a fundamental change to the Club’s Objects and contrary to the interest of the consumers/Club’s members.
This position was established before the meeting and at the meet on the 4th of July the committee was fully aware of the legal position which referred to what they were about to discuss at the AGM.
Aprox 600 soles attended the meeting and faced down the hoard discussing the impending resolution.
Did it stop the committee? Did the committee stall? No they held their position. The legal conundrums (as presented to the committee) and could have considered them with the attending solicitor. The entire committee appeared to (the attendees we have spoken to) ignore the consumer pleas and in short to affirm the land grab.
The votes were cast, taken and counted and the committee confirmed the resolution had passed. 11,000, -900 votes (aprox). In short a landslide.
A landslide to some, but a victory to the 900.
You see the timeshare is owned by each of the 900 not the club. They just want it, so have decided to just take it and the meeting is a justification to that want.
The reaction will be huge and the point is these people want their timeshare; they don’t want to lose it. There is not ground to give in this matter and no bargain to offer.
The line is drawn and each party (no doubt) will go back and prepare what to do. The acquirer of the timeshare (in this case I believe Silverpoint but I could be wrong) will fight for something and if successfully will get a benefit.
The owners will fight and no doubt will get what they know was theirs in the first place and as for the committee well they have to just chew the fingernails of worry in the hope not to find themselves behind bars (as they believe they are immune however they are not in this case).
Some will gain fees, some will be lame jockeys, some will watch whilst the litigation sickness will impale on the cross of timeshare once again.
Will this ever stop?
I am sure whatever the event, it will be taxing on them and is will be for consensuses to wrestle with over in the coming months and years. Pity but that what you get in timeshare a big hole and bent ladder and the finger.
Just like the old days of Silver point eh?
For more information regarding this article or assistance in any other timeshare related issues please contact the TCA on 01908 881058 or email: info@TimeshareConsumerAssociation.org.uk