Repsol YPF

Time-share apartments

Consumer organisations receive hundreds of enquiries and complaints every year concerning time-share apartments. This kind of holiday is an economical alternative and is totally legal. Nevertheless, given the numerous frauds committed in this area it is worth knowing how it works and what the users rights and obligations are.

To begin with, time-share marketing campaigns try to attract customers by using very aggressive marketing strategies. It is common for them to offer a sizeable gift to those who show interest in the system as a means of drawing in custom. In order to collect this gift you must attend a long session in which the company promoting the time-share will give a presentation.
 
In order to be able to carefully weigh up the pros and the cons it is advisable not to make a decision at the meeting itself and to request all of the information concerning the promoter and the product they are selling: the location of the apartment, description, services, maintenance costs and time-slot reservation conditions.
 
Numerous entities have warned of the risks involved in signing a time-share contract, which is often disappointing for the consumer who feels deceived and misled since, sometimes, the apartment may only be used in autumn and winter. It is best to try and see the specific apartment before signing the contract; it will give you a different impression to that which you can get from looking at photographs or videos. You can also request that the plans, building characteristics and location be attached to the contract.
 
Contracts
The contracts aim to fulfil the current Law on Shared Use with a large number of clauses, pages and pages which the contracting party cannot read and understand in a short period of time. The regulations expressly prohibit the concept of time-shares and limit them to a maximum of fifty years.
 
This system, designed to make better use of leisure time, is regulated by Law 42/1998 of 15 December, which clarifies a practice that is enjoyed by almost half a million families in Spain, allowing them to use furnished accommodation in a holiday complex for a set period of time per year.
 
Sometimes, the management company offers the possibility of signing another contract giving consumers the right to participate in an exchange scheme if they wish to change their holiday destination every year. In that case, the consumer has to pay an additional fee.
 
In the event of having signed one of these contracts on the day, the consumer can assess it and rescind it within ten days. In any case, even if that deadline has passed, the purchaser can get out of the contract if a compulsory item or document is missing; if the term time-share appears or reference is made to property, since it only transfers the right to shared use; if the vendor has failed to fulfil the compulsory conditions to provide information or if the information provided does not match that filed at the Property Registry. In this case the contracting party can cancel the contract within three months of signing.
 
The regulations require the contract to establish a minimum and maximum number of years, in order to guarantee the legal certainty of both parties. The company may also rescind the contract when the contracting party fails to pay the instalments due for at least a year. Both the purchaser and the vendor must communicate their waiver and termination of the contract in an irrefutable manner.
 
Precautions
There are numerous open cases against time-share companies for alleged fraud. It is for this reason that an initial recommendation has been distributed: avoid contracting this kind of service from companies whose registered office is in a tax haven or outside the European Union. In any case, it is preferable to consult a lawyer, consumer association or body if you have any doubts, to find out exactly what rights and obligations you have.
 
Any price may be set. In addition to the deposit and the yearly instalments to acquire the right to shared use, the clause detailing the price will cover the notarys fees, those required to register the use at the Property Registry and 7% of the Valued Added Tax (VAT).
 
It is useful to find out about additional costs (maintenance, utilities&) which may increase the cost of using the apartment and formalising the contract.