El blog de Maria

2017 has been a very productive year for the Spanish Supreme Court in relation to Timeshare and Consumer Law.

22 Court decisions so far, which by applying Law 42/98 to timeshare agreements, have produced important statements such as:

1. Law 42/98 established an obligatory legal form for the setup of these contracts, that if infringed, makes the contract null and void and gives the consumer the right to obtain a refund of amounts. This form must be in a Notary deed, with subsequent registration at the Land Registry and containing full timeframes, cancellation rights, identification of turns etc.
2. Law 42/98 applies, regardless the name of the contract, to any agreement by which money is paid for the enjoyment of property use for vacation weeks according to turns which have been previously acquired; where use is independent with enough furniture and accessory services; where payment is divided between an initial outstanding amount and posterior annual maintenance charges, with the possibility of withdrawing, resale and exchange.
3. Consumer is who acquires these rights with no link to his professional or commercial activities. Profit can be made if that is obtained occasionally and unlinked to profession or commercial habitual activity.
4. Lack of due information allows cancellation of the contract within three months from purchase date.
5. If payments were made by a third party (agent, lawyer) they have same consideration as being made by consumer itself.
6. Payments made within the desisting period needs to be reimbursed double fold.
7. When nullity applies, refund is calculated in proportion to years not being enjoyed so far till 50 (legal maximum period)