Timeshare Law – An explanation
Timeshare law came into effect on 4 January 1999. The law was then revised in 2012 to bring it into line with European Law, the EU regulates aspects of timeshare, for example long term holiday products and re-sale and exchange of contracts.
It is only now becoming clear what the implications of timeshare law are, this process has been on-going since 1998, however since Spanish law is constitutional, all new law needs to be verified in court before they are fully understood. Lawyers bring the new law to local and provincial courts and they then will take it to Spanish Supreme Court, once the Supreme Court has ruled its decision it’s final.
There have been some heated discussions between the masses of timeshare company lawyers and the Supreme Court, however they have upheld the law as it was written in 1998 (came into effect in 1999). The following has been confirmed as illegal in timeshare contracts:
- Deposits or payments taken within 14 days of signing (this will be extended to three months if there are any other illegal points in the contract)
- Floating weeks (including holiday club scheme) – this is when specific weeks rotate among owners from year to year on a fixed schedule. The Supreme Court ruled that any contract signed after 4 January 1999 that contains floating weeks (or a period of time that is not specified) is illegal.
- Contracts signed in perpetuity – a timeshare contract should have an end date (normally 3-50 years) and should be open ended, I.e. the contract shouldn’t last ‘forever’
The implications of the Supreme Court rulings are immense and it means that any timeshare owner with an illegal contract now has the right and the means to get their contracts annulled and get their money back.
Currently there are other areas of timeshare law that are in the pipeline to be reviewed by the Supreme Court. The 1998 law stated that any timeshare contract that has been signed in Spain which has the wording ownership or property is null and void, if the Supreme Court agrees with this, it will mean a large amount of current timeshare contracts will be illegal under their ruling.
Additionally, the 1998 timeshare law stated that the timeshare companies had to give back double any amount they took as a deposit or payment made within 14 days (or 3 months if there are any other illegal aspects in the contract). Some timeshare purchasers paid huge deposits which means that they are entitled to more money back than they actually paid for their timeshare.
What this means for timeshare owners: if you contract can be labelled as illegal or void, then all the monies you have paid can be returned to you!
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