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Supreme Court Rulings 2015: Update

RDO / Industry Updates  / Supreme Court Rulings 2015: Update
Timeshare Information and Advice
18 Mar

Supreme Court Rulings 2015: Update

Last year there were two Supreme Court rulings made against Anfi in which two perpetuity contracts were declared null and void on the basis that the membership was for a duration of more than 50 years.

RDO concurred with Anfi’s conclusion at the time that there had been a misinterpretation of the law in Spain as it applies to timeshare schemes in existence before Spain implemented the provisions of the first Timeshare Directive in 1998.

Clarification was sought by Anfi earlier this year from the Property Register and Notary Head Office, which was responsible for authorising the registration of the pre-existing schemes of the Anfi resorts, which enabled them to continue to offer timeshare contracts of unlimited duration.

The Property Register and Notary Head Office said in its response that the pre-existing Anfi schemes were correctly adapted to the new law and the contracts were legal according to the laws of the first Directive in Spain (42/98) and the second Directive in Spain (04/2012).

The rulings of the Supreme Court are, nevertheless, fully respected we are advised by Anfi that they will refund the money paid by the members for their timeshare. At the same time, the Spanish Civil Code, which states that both parties must return to one another the things that constituted the subject matter of the judgement, will be applied and the members will have to pay Anfi for the use of their apartment during the holidays spent at Anfi.

In order to calculate what the member will have to pay back to Anfi, it has been clarified that the rate should reflect what it would cost to stay in a hotel of a similar five-star quality.

The rate itself, based on data provided by the University of Las Palmas (as an independent official organization), will be considerably more than most owners paid for their timeshare and reinforces the fact that timeshare represents excellent value for money.

Because of the limited applicability of the Supreme Court ruling and the likelihood that the consumer would be charged for usage if the case is successful, RDO would caution any timeshare owner approached by a self-styled claims company to consider their options very carefully before making any decision.

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