After a landmark ruling of the Spanish Supreme Court in 2015, floods of Spanish timeshare owners are receiving substantial compensation as their ‘illegal’ ‘mis-sold’ timeshare contracts are being declared ‘null and void’.
Which contracts are ‘illegal’?
In order to be valid under Spanish law, timeshare contracts entered into after 5 January 1999 must include particular information in accordance with Spanish laws ‘Ley 42/98’ and the subsequent ‘Royal Decree Ley 8/2012’.
This information includes:
- The specific accommodation the timeshare is for
- The specific week of the year that the timeshare is for (so called ‘floating weeks’ or ‘timeshare points’ are not allowed)
- Specific information about the right to cancel the timeshare.
In addition, the contract must be stated to be for a specific period which cannot be for more than 50 years. Contracts stated to be for periods of more than 50 years or for an unlimited period of time such as ‘forever’ or ‘in perpetuity’ are not allowed.
If the contract does not conform to the above, it is illegal under Spanish law and the timeshare owner will have the right to have the contract declared to be null and void, even if they have been using the timeshare.
Am I entitled to compensation?
Owners of illegal Spanish timeshare contracts can also claim compensation.
Amounts that can be claimed are:
- The amount paid for the timeshare. The Spanish law also stipulates that if any amount was paid in the first 3 months of signing the contract, this amount is doubled.
- The maintenance costs paid since the contract was signed (even if the timeshare weeks have been used or exchanged).
- Legal fees
The amount of Spanish timeshare claims are typically between £20,000 and £60,000.
There are so many illegal Spanish timeshares claims now being made that many are dubbing the claims to be the ‘new PPI’. Just as the PPI claims snowballed, more and more Spanish timeshare owners are becoming aware of their right to cancel their timeshares and are claiming compensation.
How do I start a claim?
If you think you might have an illegal Spanish timeshare contract, many Spanish lawyers specialising in these timeshare claims will offer a free of charge review to see if you are eligible to cancel and claim compensation so you can consider you options.
The timeshare industry in Spain does not have a great reputation however and there are a lot of rogue companies. Ensure that you are careful to select a reputable Spanish law firm to provide a thorough review of your contract to determine if it will be eligible for a compensation claim.
If it is, there are a number of Spanish lawyers who are Spanish timeshare claims specialists who offer ‘no-win no fee’ to cancel your Spanish timeshare and claim your Spanish timeshare compensation.
Author: Sara Janion, Director of Worldwide Lawyers
DISCLAIMER: This article should not be regarded as constituting legal advice in relation to particular circumstances. This article is merely a general comment on the relevant topic. If specific advice is required in connection with any of the matters covered in this article, please speak to Worldwide Lawyers directly.