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Together with desisting from or cancelling the time share contract, possibilities that are subject to a shorter deadline, there is the possibility, initially sine die (without deadline) to apply for the nullity of the contract.
In what cases?
- When timeshare rights are transmitted disregarding the imperative Law which regulates them.
- When the transmission of time share rights are made before the scheme is actually constituted
- When there is a lack of veracity on information provided to the buyer.
The action for the refund of amounts linked to the nullity has a 15 years deadline.
There is numerous precedents in Spanish Courts for the nullity and refund of money if you were sold under the term " propiedad"(property)
The important issue of adaptation
From January 1999 any preexisting timeshare regime needs to adapt to this Law. If this has not happened, any holder of timeshare rights will be able to request a Judge to compel the developer to do so.
Adaptation will always require a Notary deed and proper registration in the Land Registry.
Adaptation will respect the nature of rights which were transmitted by virtue of the old private contract. If ownership was transmitted, this is what it will have to be registered after approval of simple majority of Community of owners.
All old contracts will have a time limit of 50 years unless parties have agreed otherwise or parties mutually or freely agree in the adaptation deed on a different definitive or non-definitive period.
If the owner of the development does not comply with the obligation of adapting the regime to this new regulation, the holder of timeshare rights will have rights to cancel the contract with effective devolution of amounts and compensation of damages.
2 recent Court decisions on Timeshare and associated bank loans
Asturias Appeal Court, January 2014
A recent Court Decision by Asturias Appeal Court establishes the nullity of the timeshare contract, applying provision 1261 of the Spanish Civil Code and request not just the Timeshare company but the related Bank ( jointly and severally) to refund the consumer all amounts paid plus legal interests plus legal costs. Under the theory of linked contracts.
Asturias Appeal Court estimates that the Bank acted as exclusive entity for the financing of the product and therefore both contracts are linked and both affected by the nullity vice.
Madrid Appeal Court, February 2014
Madrid Appeal Court estimates the appeal filed by the purchasers of timeshare rights and cancel both the contract and the associated personal loan under the theory on linking contracts.
There is a very relevant breach of contract by the seller as the buyer was never informed on his rights of withdrawal and unilateral cancellation of the contract.
Simancas, Valladolid, North western Madrid, Spain, at facebook.com
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