Restrictions on selling your timeshare
Many resorts will tell you that you can only advertise in ways that do not devalue their products. You may have been told that you can not advertise your timeshares at a price they do not agree with. By choosing the minimum sale price they are limiting the ability of selling your timeshare. This will keep you trapped in for a longer period of time. They know that the resale market has never been good so forcing you to advertise at a high price will certainly prevent you from selling it.
Many resorts also tell you that you can only list your timeshare with a certain company. They do this as they often have an agreement with the resale company. They will recommend one company to advertise with and once you pay them you will then enter into another agreement. This agreement often states that you can´t sell with anyone else and is set for a period of 24 months. This will keep you locked in for an even longer period of time with no results at the end of the 24 month period.
Sold as an investment
Under the EU Directive, it states that long term holiday products are not allowed to be sold as an investment. This covers timeshares, holiday club memberships and point systems. This being said, many timeshare resorts ignored this legal requirement and based their sales purely on a high return of investment. Timeshare owners were duped into thinking that they could sell their timeshares for a healthy return. If your timeshare was sold in this way you can legally null and void your contract and depending on when and how you purchased, you could be entitled to claim back the money that you have spent.
EU Directive statement
In good time before the consumer is bound by any contract, the trader shall provide clear, accurate and sufficient information, free of charge, using a standard form, in an official language of the consumer’s EU country.
The form should include information notably about the product (in the case of a timeshare contract, long-term holiday product contract or an exchange contract) or the service (in the case of a resale contract), the consumer’s rights and all costs. It must state that there is a right of withdrawal and the conditions under which it may be exercised. This information is an integral part of the contract.
Any advertising should state where the information in writing can be obtained. At a sales event:
- the invitation should clearly state the commercial purpose of the event,
- the information package should be available to the consumer at all times,
- a timeshare or a long-term holiday product shall not be marketed as an investment.
Check out the full EU DIrective here... www.e-justice.europa.eu/content_timeshare_directive_2008122-619
Problems selling your timeshare
If you have had problems selling your timeshare or have been sold it as an investment, speak to one of our specialists today to find out where you stand legally.