There are an increasing number of successful legal timeshare claims in Spain in which owners who claim compensation against timeshare resorts have won. However, there are particular criteria that your case must meet in order to be eligible. The good news is that certain cases in the Spanish Supreme Court have set a precedent, which – in legal terms – means that similar cases that are presented thereafter should also be treated according to the judgement laid out in the precedent case.
At this juncture it is worth pointing out that Spanish law does not have or recognise the same definition of precedent as would be acceptable in the UK. Case Law is not a source of procedural Law in Spain. On the contrary, the Spanish Civil Code establishes that Case Law complements the Spanish legal framework. Notwithstanding that, Case Law is treated in Spain (as, in all countries) with respect, and the decisions of the Supreme Court tends to be regarded as ‘precedents’ which the lower courts may follow when they are called upon to determine issues of a similar nature. In any case, it is important to note that the courts are not obliged to follow the decisions of the Supreme Court (although they usually do) so decisions cannot be automatically assumed to be precedent and therefore such cases cannot be regarded as clear-cut.
Legal Timeshare Claims in Spain – When you have a valid case
The following are the most common reasons for the consideration of a legal claim against Spanish timeshare resorts or any timeshare purchased utilising a Spanish contract:
Perpetuity Contracts
We have written about ‘perpetuity’ contracts on many occasions in the past, mostly because they have been a perennialproblem for timeshare owners for decades. An ‘in perpetuity’ contract is one where the contract term is indefinite (endless) and certainly exceeds fifty years, which is the now the maximum legal contract term limit.
If no end date is specified in your contract, or the date is over fifty years since the date you signed, then you are likely to have a pretty clear cut claim for compensation.
The difficulty, of course, lies in contracts which are not in excess of fifty years, but will likely exceed the owner’s lifetime. In these cases, the responsibility for the timeshare, including all fees may well be passed on to the estate of the timeshare owner upon their passing, thus reducing the amount available for distribution to the next of kin. This can be incredibly stressful, particularly if the family members are in no way financially able to pay these maintenance fees or simply don’t want the ownership. Equally, as the timeshare owner ages, use of their timeshare becomes more unlikely but the maintenance fees still keep coming and can be financially crippling – the stress of all this can seriously impact an older person’s health.
Fortunately, there are ways around this. But you’ll need a specialist in timeshare lawyer to go over your contract with a fine-toothed comb and explain the options available to you. The main areas concerning the possible illegal nature of your contract are reviewed below:
Timeshare Claims in Spain – Floating Weeks
Floating week timeshare contracts have come under the spotlight; with a significant pattern forming that this type of timeshare ownership has been deemed illegal.
The idea of floating week timeshare, gives the owner a range of weeks to choose from each year. They then have to log in and book their desired week as soon as possible as they are in competition with other floating week owners. It should mean more flexibility for holiday dates, but instead, it results in a messy, unpredictable battle between owners of the same timeshare property. These conflicts often result in people not being able to access the property at all. It goes without saying however that you will still be expected to pay your maintenance fees.
For legal timeshare claims in Spain, it is the fact that people find themselves unable to access a timeshare holiday at all that has put floating weeks under the spotlight, this together with Spanish law 42/98 which clearly states that owners of timeshare contractually must have a description of exactly what they own such as apartment number, block number and stated time of use i.e. week 47. A failure to demonstrate these details deems the contract illegal.
Timeshare Points
The thing about timeshare points clubs is the sneakiness through which they are sold. These are contracts that are often repackaged as ‘exclusive membership clubs’ or suchlike, with the word ‘timeshare’ mysteriously absent. But make no mistake this is a timeshare, and not a good one at that!
In the majority of cases, these ‘exclusive clubs’ are managed by timeshare Trusts, and – whilst they will make all manner of promises to you they are principally aimed at benefiting the timeshare resort developers… not the consumer (you).
One of the main complaints is that owners have to pay a massive upfront fee, followed by the mandatory maintenance fees. The purchase cost is then converted into points in your account. It is with these points that you secure holiday accommodation.
Like Floating Week contracts, timeshare points systems work by securing dates where there is availability, which is far from guaranteed and as with floating weeks, it can be thoroughly frustrating to secure any holiday at all through the points system. What the resort sales team told the owner about being able to exchange points for holidays in far flung exotic destinations invariably will never happen. Logic dictates that points for a resort in Spain are hardly likely to provide a holiday in the Caribbean!
Spanish law also dictates that every property in Spain; including each and every timeshare week sold, must have a land registration number. How can one register points or indeed floating weeks at the Land Registry? The answer is that you can´t thus deeming them both illegal.
Mis-Selling, Misrepresentation
You should also think carefully about whether you may have been mis-sold your timeshare. If what was presented to you turned out to be different to what you actually received, then this is potentially a misrepresentation. Where this can be proved; which is, in practice, easier said than done, contract nullification and financial compensation may be due.
Cooling off period
If you purchased your timeshare after 5thJan 1999 and weren’t offered a cooling off period; giving you the time to reflect and consider whether you’d made the right decision, then once again you may have an illegal contract. The original cooling off period of 14 days applies after signing your contract. Failure of a cooling off period not being offered will render the contract null and void, so too, if you handed over any money whatsoever during this cooling off period.
The 3 Month Rule
Spanish law also states that the 14 day cooling off period can be extended by a further 3 months in certain circumstances where failure to provide pre-contract information is evidenced. For timeshare claims in Spain, this includes not informing the client of their right to cancel, taking any payment towards the purchase within the 14 day cooling off period or failing to provide the client with the apartments land registration number. If the client did not receive this information in writing, then any payments made within this 3 month period can be and are usually paid back double upon winning a claim.
Expert Advice
As you may have gathered, the field of timeshare law in Spain is quite complex, whilst you could “go it alone” we would strongly recommend against this route. Our next article will point out some of the many hurdles and pitfalls associated with the DIY route and why expert advice is not only desirable but necessary when dealing with timeshare claims in Spain.
In the meantime, if this article on the topic ” legal Timeshare Claims in Spain” has prompted any questions, please feel free to get in touch.
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