The chief executive of RDO (Resort Development Organisation), Paul Gardener Bougaard has stated ‘We have been working closely with the timeshare owners’ organisation, TATOC, for a number of months now to find solutions for those owners who have a real need to pass on or hand back their timeshare rather than put it up for resale,” A bit of a coincidence really after the last couple of months winning results in legal battles, won by clients against timeshare resorts that are RDO members. One would believe that there is an element of fear of future lawsuits and claims, which may effect the on-going survival of the timeshare resorts underneath the umbrella of the RDO.
Just yesterday we reported on a further 2 claims that have been won over the last couple of weeks against RDO members ‘Anfi Resorts’, which are becoming easier for the clients to win, off the back of a couple of rulings in the Supreme Courts in Madrid (the highest legal entity in Spain). On this topic, the RDO have reported that they are ‘aware of the problems faced by some timeshare owners, who bought their timeshare back in the 1980’s and 90’s, the so-called “legacy cases” when timeshare weeks were sold in what was called “perpetuity” and could be up to 80 years in length’. They go on to say that for this reason they have changed their code of conduct, which has just recently been approved by the RDO board.
From now on, any resorts that are members of the RDO will need to comply with the new relinquishment regulations; if one of the timeshare owners in a joint ownership is deceased, the remaining owner has the right to give up their ownership and in doing this not have to bequeath it in their will. If any of the parties are bankrupt, the timeshare can be relinquished without further charges, if either of the owners has a long-term illness they may also hand back their timeshare resort. With respect to any other owner, they may hand back their timeshare at any time for a ‘fee’, which should not be more than 3 years maintenance of their ownership.
This at first glance looks great for timeshare owners whom are going to have more flexibility with the disposal of their timeshare. What this new code of conduct does not address is that a lot of the purchases from the 80’s and 90’s were illegal due to the weeks/points sold in ‘perpetuity’. The new code has been approved to aid all timeshare owners, but what it looks like is that the RDO has set a new code that will allow the members to give up their ownership, for a fee.
How is this aiding the timeshare owners that have signed illegal agreements one might ask? The owners are winning their original investment back in many cases, and being paid compensation over and above in many law suits at the moment. One would think that it would be a better decision to take the resort to court, however this could be a lot of hassle for many members that are in this position, or simply not possible. Hence the resorts will be gaining again from contracts that were purchased illegally, if the client is not able to, or does not want to proceed with a court battle their other option is to pay this so called ‘fee’ to their resort to take back their timeshare, an overall win it would seem for the timeshare resort themselves.
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