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  • BASIC GUIDE ON SPANISH TIMESHARING.
     
    • On 7th January 1999 Spain introduced a new Timesharing Act (Spanish Law nº 42/1998 dated 15th December 1998).
    • The law applies to rights of use for 3 years or more (up to a maximum of 50 years).
    • Purchasers must be allowed, and informed about, a 10 day "cooling-off" period, as of the day when the parties have signed the purchase contract.
    • Cancellation must be in writing and sent by the buyer not later than the 10th day, being mentioned the address for cancellation on the purchase contract.
    • Any advance payment from the buyer during the cooling-off period is forbidden.
    • The buyer is not required to pay any costs if he cancels within the cooling-off period.
    • Any related finance agreement will be automatically cancelled (at no cost to the purchaser) if the buyer cancels within the cooling-off period
    • Buyers must be given a comprehensive list of information . In the event of failure, this extends the cooling-off period by three months.
    • List of information:
      • 1. Date of contract and, data included in the deed regulating the use regime (date when the deed was executed, name of the notary, date registered in the Land Registry).

        2. Nature of the rights that will be sold, and expiry date of the use in turn regime.

        3. Description of the building, its location; description of the lodging (including registered data, and exact duration of the turn negotiated in the contract).

        4. Where appropriate, it must be mentioned that either the construction of the real estate is already finished or that the real estate is still under construction. In the latter case, the current stage of construction, the completion deadline, building licence, a quality statement of the materials used for construction, either the banker’s reference or the insurance as a guarantee of the end of the building site, and the buyer’s residence in order to communicate him or her the end of works, must be mentioned.

        5. Complete price to be paid by the buyer, indicating the updating procedure (for the management fees) which, in general, will be made according to the retail price index. However the parties of the contract can arrange another updating method. Also, it must be mentioned the amount of taxes to be paid by the buyer along with an indication of the notary and registry expenses, where appropriate.

        6. Information of rights of cancellation and unilateral solving

        7. A statement that any payment in advance made by the buyer is forbidden during the cooling-off period or the right of unilateral solving.

        8. The Community services and installations and conditions of use.

        9. Possibility of participating in exchange services of periods of use.

        10. Identity and place of residence, as well as registration in the Business Register of the owner or promoter; of the seller (indicating here the relationship between the owner and the seller at the moment the contract was signed) and of the buyer and of the third party in charge of the exchange service.

        11. Duration of the use in turn regime, with a reference to the deed that regulates it.

        12. Information on buyer’s rights in order to check the ownership and the charges of the real estate (the residence and the fax number of the relevant land registrar), in order to demand a deed and to register the buying of the right in the Land Registry.

        13. Place and signature of the contract.

        14. The buyer must receive a copy of the contract containing all the above information.

  • The purchase contract must be in the language of the buyer provide that such language is a recognised European Union language.
  • The buyer will pay VAT tax(7% of purchase price).
  • There must be an "Owners Community" where each owner will have one vote for every week owned. A two thirds majority is required for changes to any arrangements and a simple majority (50%) is required for all other decisions.
  • The law applies immediately to all new developments and the 6th January 2001 for all developments existing at 7th January 1999. Existing Resorts must comply with the new law within two years but may continue with their existing structure provided that it is duly registered.
  • Annual quota. In addition to the acquisition price, the purchaser must satisfy the annual quota of maintenance that will appear in the contract.  This one can to be updated in future, but always according with the general index price.
  • Term. Every year the resort can be occupied by the period fixed by the contract, with a minimum of one week, during every following year to the one of celebration of the contract up to the extinction of the regime.  This one must have a minimum three years term and a maximum of fifty, but counted as of the registration of the regime, not as of the contract's date.  The date of extinction of the regime must appear in the contract.
  • Information to the consumer. The promoter is forced to publish a document containing the essential information, so that the interested consumer may know the specific characteristics of the regime (situation of the building, description of the lodging, its furniture, the services whereupon counts, etc.)
  • Additionally, in the Real Estate Registry must be obligatorily registered the complete incorporation deed.

  • Insurance.The promoter is previously requested to arrange an insurance policy that guarantees that the construction will be finished within the proposed term .
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