Making sense of the law and timeshare contracts prior to buying into a timeshare agreement is both confusing and time consuming. That said, it is necessary when considering buying a timeshare as understanding the law concerning timesharing and how to make head and tail of a timeshare contract will both help you to decide whether you really do want to become a timeshare owner and how to go about it – without being scammed, mis-sold a timeshare or otherwise duped into entering an agreement that is not right for you.
The Law
The law surrounding timesharing is complex. This has led many to purchase into a timeshare when, had they understood the law and so what they were doing or buying, they would never have done so. Consequently, and understandably, millions of people have lost, well, millions of pounds collectively and since the timeshare first hit back in the 1960’s.
In an attempt to remedy this and sever many of the loops holes and grey areas in the law which has enabled timeshare traders to exploit it and as well their customers, governments in numerous countries (most notably here in the UK and in Spain where a high proportion of timeshares have been purchased by Brits) have changed or been revised over the years.
Whilst the revisions that have so far been made ensure those now buying timeshares are far more protected against mis-selling and unfair selling practises previously used within the timeshare industry, it can ironically perhaps make things even more confusing for current timeshare owners to know exactly where they stand and what their rights are. This is especially true as specific revisions made in Spanish Common Law and as well British Law regarding timesharing has effectively nullified and voided a number of the agreements and contracts taken out in order to purchase a timeshare prior to the laws being changed – such as in the case of ‘entrusted’ and ‘deeded’ timeshare agreements.
Hence, to ensure you make the most of these new measures and ensure you do not lose your savings when buying a timeshare, you must make a point of familiarising yourself with them. To do that, fortunately, is a relatively easy task in 2016; simply head over to the Timeshare Exit & Support Services website and give the articles, news and information provided via both their Legal and Law sections a read. Alternatively or in addition to reading the information TESS provide, you can speak with a TESS team member to ensure you are correctly understanding everything you are reading and in order to gain specific answers to any remaining questions you might have.
Timeshare Contracts
Entering a timeshare agreement or contract is a perfectly legal thing to do whether you are looking to purchase a timeshare or even to set one up in order to rent out a property you yourself already own to be used and enjoyed by other people.
That said, even in 2016 a percentage of the timeshare agreements and contracts signed fail to live up to the law or abide by it – and this is despite the changes in timesharing legislation which have come into force to try and prevent such unlawful agreements from being made. Therefore, whilst the risks today of being mis-sold or scammed into entering a timeshare contract are lower than two decades ago, those looking to buy a timeshare should none-the-less exercise a high level of caution when signing anything relating to timesharing.
Then, to begin getting to grips with timeshare contracts, a good place to start is by familiarising yourself with timeshare law, as discussed above. Specifically, you will want to familiarise yourself with The Timeshare Act 1992 which you can read in full via the Official UK Government Legislation website.
Secondly and subsequently, it is also advisable to give some time to learning about your cancellation and exit rights as many of the ‘issues’ involved and reported regarding timeshare contracts arise only after having signed on that dotted line. The most common example of this is in cases of mis-selling when things agreed upon and stated in the contract fail to materialise in reality or are not provided as described according to the contract you have signed. Fortunately, you can do this by taking a moment to read the changes made to timesharing announcement: New Timeshare Directive to come into force, which is also available to read via the Gov.UK website.
Further Important Points to Know Before Purchasing a Timeshare
Further to understanding the law and legal aspects of timesharing, it is imperative to understand exactly what timesharing is and as well what it most certainly isn’t. Hence, carefully consider the following points before parting with your money:
- Timesharing offers no investment potential. In fact, timeshares typically depreciate in value year on year. Hence, few recoup their initial financial investment amount, never mind make a profit when re-selling.
- Re-selling a timeshare is difficult, time consuming and stressful as few people in 2016 want to timeshare and the industry is so saturated with scams, cons and mistrust.
- You will have to holiday in the same location, accommodation and often during the same window of time every single year for the duration in which you own the timeshare in order to make ‘investing’ in a timeshare worthwhile.
- Timeshares are sold along with fees which become the legal responsibility of the buyer. That is, you can expect to pay annual maintenance costs and fees every year you continue to own a timeshare. Failure to do so is against the law and will land you in court.
- Not every country enforces the European Timeshare Regulations, so you may not be very well protected (if at all) when purchasing a timeshare, depending where you purchase it.
Suffice to say, the law is only one aspect of timesharing you will need to give careful thought before taking the plunge. Then, for more information, tips and advice ahead of doing so, as well as how to avoid being scammed in 2016, you can continue your reading and research via the UK Trading Standards website, and by giving their Timeshares and Holiday Clubs Guide a thorough going over.