RDO Important Update
Here at Travel & Leisure Group we have updated our terms of service after RDO announced its members are to update their websites and contracts by 1st October 2015 due to changes in the Alternative Dispute Resolution (ADR) amongst EU Member States.
By being a member of RDO Travel & Leisure Group helps safeguard its customers with RDO’s strict code of conduct that allows them to address complaints.
Please find the update below:
As a member of the industry trade body, Resort Development Organisation, Travel & Leisure Group has signed up to its Code of Conduct and Alternative Dispute Resolutions scheme (ADR). For more information, go to http://www.rdo.org/rdo-consumer-services/
To date, less than five cases have been escalated to ARD amongst RDO members with RDO stating a decrease in complaints being made. RDO have also stated that they have had a high resolution rate amongst the complaints it receives.
Timeshare Buying and Selling Advice (extract)
There will of course be situations where owners may need to dispose of their timeshare/points. However, as Timeshare is regarded as a long-term investment in holidays as opposed to an investment in real estate, it would be unrealistic to rely on realising the original purchase price. Bear in mind that some resorts/unit sizes are far more popular than others and; as sales depend on current supply and demand, it is not always possible to guarantee a date for resale. Resale companies offer various services. Some may not handle Points and some may charge up-front resale registration fees. Others may not charge an up-front fee but make a charge for optional advertising eg on the internet. RDO Resale Members must follow the Code of Ethics. Details of the services/costs/commissions/valuations should be obtained by contacting the relevant agencies direct.
Before giving instructions for a resale it is important that the timeshare ownership documentation e.g. membership certificate/escritura is complete and available, maintenance fees paid and that any exchange organisation’s future banking/deposit of week(s)/points are made clear.
Selling Membership Privately
a) Escritura Framework
Many timeshare resorts have chosen the escritura system of transfer as opposed to the club trustee system and trust concept recognised in Anglo-Saxon law. Transferring such title through an escritura deed is not complicated, but it should be executed and signed before a notary. The normal procedure is for the notary to retain the original and for an authorised copy to be given to the new purchaser, with a system in place to protect the parties against loss of the document. The escritura is passed to the Land Registry for entry in the ‘diary book’. The Land Registry can upon payment of a small fee also provide a certificate to any potential purchaser certifying whether that particular property is affected by any charges or encumbrances and if so, can provide a list and description of those encumbrances. Generally a timeshare resort can put a purchaser in touch with a local notary who is familiar with the resort and the escritura/Land Registry documentation requirements.
Otherwise use an independent timeshare conveyancer, such as Travel & Leisure Group.
b) Club Trustee Framework
The club trustee legal framework covers ownership of what is termed “moveable property”. You simply need to complete the ‘Form of Surrender and Request for Transfer’ which is normally printed on the reverse side of the resort Membership Certificate in order for ownership of that week/weeks to pass to the new owner(s). (However, many resorts are now requesting signatures certified by a notary public and other complicated issues).
You should note that if you do not continue the maintenance fees you would ultimately be in breach of your management agreement and the developer/management company may be constitutionally entitled to repossess your timeshare to safeguard the day-to-day running of the resort. This effectively means it would take it over and sell it off for simply a sum sufficient to cover any outstanding maintenance fee debt, even should this be of the order of only Â£200.
If you are in a situation where you wish your timeshare to be repossessed, you should send a recorded delivery letter to the resort management company. Please note, however, that there is no obligation on the part of any developer to take back the timeshare.
RDO MEMBERS RESALE CODE
- Resale RDO Members should clearly disclose to seller and buyer, as appropriate, the relevant obligations and rights of all parties to the resale marketing, sales and conveyance transactions, including but not limited to the Resale Member and the seller and buyer of the timeshare interest.
- Resale members must offer buyers of resale timeshare interests the same benefits of cooling-off period and protection of advance payments as are offered to other buyers of timeshare interests or as otherwise provided by the Law.
- Resale Members may not directly nor through a third party make unsolicited contact, via telephone, fax or mail, with timeshare owners on what is, or may be construed to be, a cold call approach aimed at inducing such owners to permit the resale organisation to act as their selling agent.
- Resale Members may not directly or indirectly solicit a fee from a vendor by falsely representing that there is a purchaser ready, willing and able to acquire the vendor’s timeshare.
- Resale Members are not permitted to take any form of mandatory upfront payments for the listing, marketing and sale of any timeshare interest. The only payments permitted are for specific work which has been completed, for which the vendor must be clearly informed.
- Resale members must maintain a justified track record in achieving sales on behalf of private vendors.
Through its strict code of conduct, designed to safeguard the interests of consumers, RDO Resale Company members must ensure that:-
a) they offer a credible resale service for which the only charge made is on achieving a sale and
b) that other charges are only permitted for optional work which the vendor is clearly informed and which work has been completed.
c) Ensure that any completion money paid by the purchaser in respect of a Resale Transaction (as well as any advance payment under Section V. 1.3) shall be paid to and held by a third party such as a bank or recognised trustee as stakeholder until paid out under the terms of the Resale Transaction documentation.
For more information and a guide to prices, complete our selling Timeshare enquiry form. It only takes a minute and we will call you back free and with no obligation.