Legal rulings that change the face of Timeshare
The Spanish High Court in Madrid have made a number of rulings that have moved the whole nature of the relationship between timeshare owner and resort. These rulings have declared some types of agreement as illegal, said that some forms of ownership are not lawful and in addition, have declared that some forms of timeshare contracts should not only be declared unlawful but stated that those who own them should be compensated.
Contracts written in perpetuity deemed to be unlawful
One of the most important rulings made in 2015 has profound implications for the timeshare industry. In essence, the ruling stated that any contract written after 1998 cannot contain provisions for contracts longer than 50 years. If the contracts states a term longer than 50 years is it deemed unlawful and therefore Null & Void. This ruling covers tens of thousands of timeshare contracts, and those with such a contract should discuss their contract with a specialist.
All these rulings should be acted upon – quickly
These rulings are great news for the long suffering timeshare owner, but only if the owner acts upon them. As we stated earlier, even though some contracts may be no longer enforceable, the timeshare companies will be very unlikely to share this with their owners. At last the scales have tipped in favour of the owner – but only if that owner is armed with specialist advice. Without the expertise of a specialist relinquishment or mediation company, it is very unlikely that the average owner will be able to navigate through the rulings and counter actions currently taking place in the Spanish courts.