- What is timeshare?
- In which legal rules is timeshare regulated?
- What form should a timeshare contract have?
- Until when can I withdraw from the contract?
- I paid a deposit to the seller and I want to withdraw from the contract within the withdrawal period. Will the seller reimburse the deposit?
- How can I terminate a timeshare contract?
- Do I have the right for reimbursement of the original investment costs or their part in case that I want to terminate a timeshare contract?
- What are my rights as a consumer when I am just about to conclude or I already concluded a timeshare contract?
What is Timeshare?
Timeshare is a contract on using a building or a part of a building for a certain period of time. Timeshare entitles the purchaser to a regular use of certain recreational property or its part for a period time. The purchaser is obliged to pay maintenance fees related to administration of the property provided as well as the purchase price for timeshare at the start of the contract. In return, the purchaser has the right to use facilities of the respective recreational property, but just for a certain year period which is also defined in the contract.
We would like to warn you that timeshare sometimes is unfavourable and costly investment which is worth being consulted with experts. Although there are efforts by the EU to protect timeshare consumers, timeshare can be bound to an ownership share of real estate or concern in legal person seated anywhere in the world. These relationships that stem from participation in such legal persons or ownership share are however not governed by the minimal standard regulated by European directives subsequently implemented in national laws, but by national laws as such.
In which legal rules is timeshare regulated?
Timeshare is governed by provisions on consumer contracts in the Civil Code, namely sections 1852 to 1867. These sections implemented European Directive 2008/122/EC on the protection of consumers in respect of certain aspects of timeshare, long-term holiday product, resale and exchange contracts.
I paid a deposit to the seller and I want to withdraw from the contract within the withdrawal period. Will the seller reimburse the deposit?
Yes. The seller must not require any fees and deposits before the end of the withdrawal from the contract. All advance payments by the consumer are prohibited until the sale takes place or the contract on further sale is terminated in another way. The prohibition concerns any advance payment, provision of guarantees, reservation of money on accounts, explicit acknowledgement of debt or any other consideration to the trader or to any third party by the consumer before the end of the withdrawal period. If you paid a deposit to the trader before the end of the withdrawal period, you have the right to get it back. If the seller refuses to reimburse you, you can bring a case before the court due to unjust enrichment.
How can I terminate a timeshare contract?
We have to start from the premise pacta sunt servanda, meaning that agreements must be kept. You can withdraw from the contract only if it is stipulated in law or the contract. Contracts often do not contain withdrawal from the contract due to breaches of contractual obligations from the side of the trader. According to the provisions of the contract, it is usually only the trader who can withdraw from the contract in case that the timeshare holder breaches his obligation concluded in the contract which in most cases results from the failure to pay so called maintenance fees. With regard to the fact that timeshare is not cheap we recommend that you consult a lawyer before concluding a contract on timeshare.
Do I have the right for reimbursement of the original investment costs or their part in case that I want to terminate a timeshare contract?
Unfortunately, there is no clear answer to this question. Theoretically, you should have the right for a part of the amount for unused timeshare but it depends on the contract and contractual arrangements regarding the withdrawal and related penalties.
- Invitation to the respective promotion or sales action must contain commercial purpose and nature of the particular event;
- Before you conclude the contract, you have the right for pre-contractual information provided in Czech by means of the standard information form;
- You have the right to withdraw from the contract within 14 days without giving any reason and without sanctions. The withdrawal period shall be calculated from the day of the conclusion of the contract or of any binding preliminary contract;
- Before the end of the withdrawal period, any advance payment, provision of guarantees, reservation of money on accounts, explicit acknowledgement of debt or any other consideration to the trader or to any third party by the consumer is prohibited. Any such conduct is in conflict with the prohibition and is considered ground for the right to issue unjust enrichment;
- In case that you apply your right for withdrawal from the contract, all accessory contracts will be terminated.