Re-Selling Timeshare Contracts

The later version of the law is contained in section 1 of the Timeshare, Holiday Products, Resale and Exchange Contracts Regulations 2010.
This law/regulation come into force on 23rd February 2011 and all UK re-sellers of Timeshare and long-term holiday products are in subjection to them.

The re-selling of timeshare contracts is regulated business and for good reason and in the past and indeed the present many resellers have and still do break the law. Accordingly, the lawmakers believed a need exists to force upon re seller’s legislation to ensure that the trade they conduct is fair and they adopt fair concepts.

Regulation 4 provides that you the consumer is entitled to; “key information”, in relation to a regulated re-sale contract.
The contracts which are regulated are covered by Section 4. (1) whereby it identifies “holiday accommodation contract” as
(a) a timeshare contract,
(b) a long-term holiday product contract,
(c) a resale contract, or
(d) an exchange contract.

A holiday accommodation contract falls within this paragraph if it is to an extent governed by the law of (a) the United Kingdom, or (b) a part of the United Kingdom. and (c) the parties to the contract are to any extent subject to the jurisdiction of a court in the United Kingdom in relation to the contract which signed in the UK.

Under section 7. (1) A “timeshare contract” means a contract between a trader and a consumer (a) under which the consumer, for consideration, acquires the right to use overnight accommodation for more than one period of occupation, and (b) which has a duration of more than one year, or contains provision allowing for the contract to be renewed or extended so that it has a duration of more than one year. (2).

The resale of contracts is covered under section 9.and states A “resale contract” means a contract between a trader and a consumer under which the trader, for consideration, assists the consumer in buying or selling rights under a timeshare contract or under a long-term holiday product contract.

As you are a consumer the law defines a consumer as an individual who is not acting for the purposes of a trade, business, craft or profession, however, a trader” means a person who is acting for purposes relating to that person’s trade, business, craft or profession
Before you engage a re-seller, they are expected to provide all the Key information under section 12. It states the trader must
(a) give the consumer the key information in relation to the contract, and (b) ensure that the information meets the requirements of this regulation. (2).

The trader must comply with paragraph (1) in good time and before entering into the contract. The information must be clear, comprehensible and accurate, and sufficient to enable the consumer to make an informed decision about whether or not to enter into the contract.

Schedule 3 must be applied in all circumstances and is particular to timeshare resale contract.
Any advertising related to a regulated contract must indicate how the key information in relation to the reselling is provided further a trader must not market or sell a proposed timeshare contract or long-term holiday product contract as an investment.
In section 16 Obligations of trader (1) Before entering into a regulated contract, a trader must draw the attention of the consumer to the following matters.

(a) the right of withdrawal under the contract (see regulation 20),
(b) the length of the withdrawal period (see regulation 21)and
(c) the prohibition on advance consideration during the withdrawal period (see regulation 25).

(2) Before entering into a regulated contract a trader must obtain the signature of the consumer in relation to each section of the contract dealing with those matters. (3) When a trader and consumer enter into a regulated contract, the trader must provide the consumer with a copy of the contract at the time the contract is concluded. (4) If a trader fails to comply with any of paragraphs (1) to (3) (a) the trader commits an offence, and (b) the contract is unenforceable against the consumer.

Rights of withdrawal 20. (1) A consumer may withdraw from a regulated contract by giving the trader written notice of withdrawal during the withdrawal period. (2) For the purposes of paragraph (1), written notice is to be regarded as having been given by the consumer at the time it is sent. (3) The consumer does not have to give any reason for the withdrawal. (4) The consumer may use the standard withdrawal form included in the contract under regulation 15 (7) as the notice of withdrawal.

The withdrawal period is covered by 21. (1) The withdrawal period for a regulated contract— (a) begins on the start date, and (b) ends on the date which is 14 days after the start date, subject to the following provisions. (2) The start date is the later of— (a) the date of conclusion of the contract; (b) the date on which the consumer receives a copy of the contract. (3) Paragraph (4) applies if a standard withdrawal form is not included in the contract in accordance with regulation 15(7). (4) The withdrawal period ends— (a) on the date which is one year and 14 days after the start date, or (b) in a case where the standard withdrawal form is provided to the consumer within the period of one year beginning on the start date, on the date which is 14 days after the day on which the consumer receives the form.

SCHEDULE 3

Regulation 13 (2) (c) Standard Information Form for Resale Contracts

Part 1 the trader must Identity, place of residence and legal status of the trader(s) which will be party to the contract: Short description of the services (e.g. marketing): Duration of the contract:

Price to be paid by the consumer for acquiring the services:
Outline of additional obligatory costs imposed under the contact; type of costs and an indication of amounts (e.g. local taxes, notary fees, cost of advertising):

Has the trader signed a code/codes of conduct and, if yes, where can it/they be found?

Part 2 General information: - The consumer has the right to withdraw from this contract without giving any reason within 14 days from the conclusion of the contract or receipt of the contract if that takes place later.

Any advance payment by the consumer is prohibited until the actual sale has taken place or resale contract otherwise is terminated. The prohibition concerns any consideration, including payment, provision of guarantees, reservation of money on accounts, explicit acknowledgement of debt etc.

It includes not only payments to the trader, but also to third parties.

The consumer shall not bear any costs or obligations other than those specified in the contract.

Part 3 Additional information to which the consumer is entitled and where it can be obtained specifically (for instance, under which chapter of a general brochure) if not provided below: - conditions for terminating the contract, the consequences of termination, and information on any liability of the consumer for any costs which might result from such termination, - indication of the language(s) available for communication with the trader in relation to the contract, for instance in relation to the handling of queries and complaints, - where applicable, the possibility for out-of-court dispute resolution. Acknowledgement of receipt of information: Signature of the consumer.

“No Win No Fee” Compensation Claims Please contact Mrs Glynn on 01253 208482

Monster Credits/ ABC Lawyers Claims Please contact Miss Ali on 01253 208488

Club La Costa compensation Claims Please Contact Miss Jenkinson 01253 208 483

Terminations of your Timeshare Please Contact Mrs Trippier 01253 729683.

Accounts jacqueline@tesslimited.co.uk>

Exits and Terminations: dianne@tesslimited.co.uk

Compensation: rachel@tesslimited.co.uk

Institute of Paralegal Practising Certificate Number IoP 794115

Posted on: 1st March 2017