Re Selling timeshare products and contracts, is a regulated practice and is covered fully in The Timeshare, Holiday Products, Resale and Exchange Contracts Regulations 2010.
The trading (as stated) is regulated by the rules contained in the regulations. Each trader is in complete subjection to those regulations which are discussed below:-
It states in definitions 9.
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.
Regulated contract as detailed in the regulations
- A “regulated contract” means a contract which is a holiday accommodation contract (see regulation 4) to which these Regulations apply
Holiday accommodation contracts (regulation 4)
A “holiday accommodation contract” means amongst other things
(c) a resale contract,
Therefore all re seller have to be compliant to those regulation and the associated rules which govern the re selling of timeshare contracts.
Re seller at present are charging consumers for placing advertisements on their web sites and believe that they can do this in contravention of the spirit of the above regulations. The charging and fees collected are suggested as being outside the regulations as they are merely fees for putting advertisements on their retrospective web sites (like e bay) which in our view is complete and utter poppy cock.
If a consumer wishes to dispose of his timeshare and approaches a specialised re-seller that timeshare product has to be advertised so as to find a buyer. If it is not advertised a prospective buyer will never know it is for sale. Advertising something for sale is a basic function of a timeshare re seller and is therefore a cost to the selling process. It is mischievous to suggest otherwise. To suggest that the consumer is merely paying a contribution to the upkeep of a company’s web site is utterly befuddling at best. As that consume is paying for the promotion of an organisation her receives no benefit from and has no interest in.
On E BAY I accept that the practise falls outside the regulations as this is consumers dealing with consumers where are re-sellers are trader acting for behalf of consumers.
The regulations are quite clear and frank, they say
Advance consideration
25.(1) This regulation makes provision about when consideration may be accepted in relation to regulated contracts.
(2) Paragraph (3) applies in relation to a timeshare contract, long-term holiday product contract or exchange contract.
(3) No person (a company is a person in law) may accept any consideration from the consumer before the end of the withdrawal period in relation to the contract (see regulation 21).
(4) Paragraph (5) applies in relation to a resale contract, the subject of which is rights under a timeshare contract or long-term holiday product contract.
(5) No person may accept any consideration from the consumer before—
(a) the sale of those rights takes place, or
(b) the contract is otherwise terminated.
(6) For the purposes of this regulation “consideration” includes any of the following—
(a) payments,
(b) guarantees,
(c) reservations of money on account,
(d) acknowledgements of debt.
(7) A person who contravenes paragraph (3) or (5) commits an offence.
Penalties for offences
- A person guilty of an offence under the preceding provisions of these Regulations is liable—
(a) on summary conviction, to a fine not exceeding the statutory maximum, or
(b) on conviction on indictment, to a fine.
Consumer should if they have been charged advertising fee report the re seller to the authorities and seek county courts proceeding for recovery. Please note that you can only seek recovery of your money if the sums paid have been made within the last 6 years.
Further to the above the Re Seller are obliged to and as part of their duty comply with the following:-
Standard Information Form for Resale Contracts
Part 1
Explains the information that is required so as to offer the timeshare for sale and is a basic requirement. Any contravention of these regulations can be challenged by the consumers up to 6 years after they entered into the arrangement which they latter regret.
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 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 has to give a consumer:
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 payment to the trader, but also to third parties.
The consumer shall not bear any costs or obligations other than those specified in the contract.
In accordance with international private law, the contract may be governed by a law other than the law of the Member State in which the consumer is resident or is habitually domiciled and possible disputes may be referred to courts other than those of the Member State in which the consumer is resident or is habitually domiciled.
Signature of the consumer is required at all times in acknowledgment that all the above have been fully explained to them. That explanation will be un fettered clear and factual.
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 is required by the consumer:
This is done by way of the consumer signing the document. A breach will be a breach of the regulations and consumers can claim their fee back.
For more information regarding this article or assistance in any other timeshare related issues please contact the TCA on 01908 881058 or email: info@TimeshareConsumerAssociation.org.uk