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On the 5th of January 1999, the Spanish Government brought into law a Directive in Spain (42/98). This law imparted many rights and for the benefit of Timeshare consumers. It outlawed the taking of advanced payments, ruled unlawful Floating Timeshare contracts and limited general Timeshare contracts from perpetuity to no longer than 50 years. The law was publicised and disseminated to all Timeshare Resorts. The knowledge of this law became widely known all over Europe and within the Timeshare community.

The law being known to the entire Spanish Timeshare industry, who were required them to amend the many existing contracts and never issue further Timeshare contracts which were incompatible with the new Law. Many would believe that the new law would be considered by Resort owners and the Organisation for timeshare in Europe OTE. When considered new guidance should have flowed from the trade body, so as to disseminate clear and consistent advice on their members and on how to deal with the issues the new law raised in the Timeshare community.

Meetings ought to have taken place, considerations should have been deliberated on, advice sought and an agreed action implemented. As these were new laws, effective and materially affected the products being offered. Monumental change should have occurred and did not. Such monumental changes did not occur and many in the Timeshare industry simply ignored the law, preferring a continuance of mis-selling the Timeshare products, they wanted the consumer to be bound to.

As a result, the actions of some resorts brought about a discord. That discord became apparent and some Timeshare owners decided to take matters further issuing claims in the Spanish Courts, claiming that the industry largely ignored the law, which resulted in a denial of the rights those Timeshare owners ought to be enjoying.

The confusion was entirely generated from bad and unkempt advice, coming out of the Timeshare industry organisations as the “law is the law” and many Timeshare resorts chose to repeatedly break it and in preference to their own profits. In breaking the 42/98 law, some resorts repeatedly received payments for unlawful Timeshare products and basked in enjoyment which accumulated from profits which flowed from lawbreaking.

By January 2016 the issues had reached the Supreme Court in Madrid. The Court was charged with settling the many cases that were generated by the failure of the Timeshare industry to comply with the Legal Directives.

After 8 sittings the powerful Supreme court ruled that;-

Perpetuity (contracts over 50 years) in Timeshare contracts entered into after the 5th of January 1999 were unlawful and those contracts and entirely voidable


If timeshare owners had paid an advance payment, the contracts again were unlawful.

If the seller had taken a deposit within the “cooling off” period, that seller should pay exemplary damages equal to 100% over and above the deposit taken

If the contracts were described as “Floating arrangement/type contract were also unlawful.

The timeshare industry expressively knew the law and being aware that many cases were heading to the Supreme court some Resorts began a course of events that would change the many contracts consumers had been sold.

These changes might have been designed to try and avoid the liability, however, those adventures will flounder as those theories they had been wrong.

The real situation is that if any consumers paid a deposit, entered into a perpetuity contract, paid in advance or acquired a floating timeshare contract the product that was sold is unlawful and therefore deemed voidable.

What flows from the voidability of the contract is damages, and each and every timeshare owner has an express right to those damages and if they chose to action their claim in Spain. TESS is assisting hundreds upon hundreds of Timeshare owners to process claims and in pursuit of full recovery, including compensation. TESS, with others, have created a “no win no fee” arrangement with the backing of “litigation funding”, whereby each and every Timeshare owner is in a “win-win” position. It’s not hard to make a claim for the damages you are entitled to; you will not be required to deliver all the documents as the legal issues are quite straightforward.

Dependant of the resorts attitude to the many claims they are receiving, they may choose to defend the indefensible claims of consumers. In those circumstances it can take some time before a meritorious conclusion is achieve, but with the backing of “litigation funding” our clients are safe in the knowledge that their legal fees will be met and any adverse costs order [which might flow from a failed adventure] will be paid in full and by the litigation funders.

All the claims being made by TESS are through our international claims department headed by Mr Gavin Lees. He is qualified in law, a Fellow of the IoP in the UK and Scotland. He is also being considered as a member in the IoP New York. USA.

Safe in his and our hands and with the backing of the “litigation funding” arrangements, our clients should be safe in the knowledge that their claims will be handled professionally and without the risk of being scammed.

Many Resorts have broken the law on many, many occasions and are reacting to that fact by disseminating on the wider Timeshare community scare stories about legitimate Professional. The purpose is to dissuade consumers from claiming what is rightfully theirs.

TESS at present has been researching the many “timeshare point systems” which have been sold. TESS will in due course announce that it will be “leading the charge” in group actions against the many “point sellers”. We are hearing many stories from disgruntled consumers, who believe that they were mis-sold, subjected to many misrepresentations and the promised benefits were not entirely delivered.

Posted on: 24th March 2016