Timeshare
Advice
Not Regarded as Timeshare
There are a number of other holiday products which although related to Timeshare are NOT currently covered by the legislation, these include:-
Holiday and Vacation clubs
These are schemes whereby consumers purchase what amounts to a promise by the club to provide them holidays for a very long period into the future (sometimes their lifetime). These schemes look very like timeshare but they are not covered by Timeshare legislation as membership of the club is not linked to any rights in any particular property. Instead the club offers them the opportunity of holidays in a variety of different locations.
A number of these types of holiday/vacation club memberships are sold by classic "bait and trap" tactics. Individuals receive offers of free holidays or gifts, often in the form of scratchcards from street vendors, in return for attending a presentation about the scheme. At the presentation, high pressure selling methods are used, sometimes over the course of several hours. Some consumers sign up in order to get away only to find that there is no right to cancel and they have lost their money (consumers who sign contracts and pay deposits outside the UK are not protected by UK law).
Timeshares of less than 3 years duration
These fall outside the scope of Timeshare legislation which defines timeshare as giving purchasers rights for a period of not less than three years. To avoid the legislation applying timeshare contracts can be offered for a 35 month period, sometimes with an option to extend the duration once the 35 months is up.
Timeshare in floating vessels (e.g. narrow boats, pleasure boats & houseboats)
The Timeshare legislation does not cover timeshare in any form of boat or ship.
Timeshare resales
There are a number of long standing bad practices in this area to watch out for (see also the "buy-sell con" in Section 1 There are some disreputable companies who offer timeshare owners, wishing to sell, a marketing service at a price (up to £700 in some cases). These companies often claim to have many potential purchasers wishing to buy. But once the fees are paid, sales rarely result and, where they do, it is often at a price that barely covers the fee. Individual owners wishing to sell have no protection under Timeshare legislation in cases such as these*.
*Note Whether timeshare resales are subject to the Timeshare Act 1992 depends on whether the vendor acts in a private capacity or in the course of a business. If the vendor, for example, is a company selling a timeshare from its own "stock", and is selling it in the course of a business, then the sale is covered. If the vendor is a private individual who has engaged the services of an agent to market his timeshare (the more usual course) then it is not covered.
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