Browse Tag

First National Trust Company

heavy handed

Los Claveles: Is This a Return to the Bad Days of Timeshare in Tenerife?

Inside Timeshare has received this very disturbing email from two owners of Los Claveles in Tenerife:

From: XXXXXXXXX  XXXXXXXXXXXXX

Subject: Pensioners physically abused at Los Claveles Tenerife

Message Body:

Please see the press release http://tesslimited.co.uk/2017/05/12/war-break-out-at-club-los-claveles/

What was feared in this release has come true and much worse.

Armed thugs have physically and verbally abused at least two people trying to peacefully and lawfully obtain access to their timeshare apartments last Friday. More are arriving today and getting similar treatment.

This e-mail was sent from a contact form on Inside Timeshare (http://insidetimeshare.com)

Los Claveles, is a resort which was originally built by Wimpey Leisure some 30 years ago, most of the owners have been there since that time and are now either pensioners or soon to be so. When it was first sold, the timeshare was split as follows:

The first 15% were sold as Escritura with the remaining 85% as standard timeshare club system, all are fixed week owners with an allocated week and apartment number. This means they have certain rights, which in effect makes them the owners of the resort with the right to employ or dismiss the management company. The right to vote for any increase in maintenance and the right to say how that would be used.

In 2000, with the new timeshare laws coming into effect, the club which is run by the owners committee had the deed of adaptation signed  to comply with the new laws.

June 1998, saw the management buyout from Wimpey Home Holdings, led by Ivan Pengelly. Over the years it grew from strength to strength and was one of the very few which had no issues or complaints, with all owners and members having nothing but good to say about them. Indeed it is one of the few whose membership base has stayed constant.

It would appear that it is what timeshare was all about, having a share in a holiday home with great facilities and a wonderful resort staff. Many of which have been at the resort for many years, creating a very family atmosphere.

Unfortunately that has all change since January 2015, when Wimpen sold the management right to the Ona Group, a Barcelona based timeshare marketing company. This resulted in confrontation with the long standing owners, many being owners for the past 30 years, due to the heavy handedness of Ona Group. They totally ignored the wishes of owners.

The owners through the committee served notice on the ONA Group, as is their right, to terminate the management contract in July 2015. This was taken to arbitration. Ona Group failed to accept it.

The contract to manage the resort on behalf of the owners came to a natural end in May 2017, Ona Group refuses to hand back the clubs assets. It is also known that FNTC (First National Trust Company) were removed by the owners with Hutchinson & Trust Co Ltd, employed in their place. FNTC according to the Chairman of the committee have failed to transfer all title deeds to the new company.

The committee are also being denied access to the members database, so are unable to contact a large number of members to inform them what is going on.

Now we have a very disturbing escalation to the conflict, as shown in the opening paragraph, owners are being removed from apartments and the resort which they have a right to occupy. This is being done in a very heavy handed manner, with Ona’s own security company who are wielding batons forcibly removing owners and denying them access. Many of these are elderly.

The President of the committee has been verbally abused and has also been told she will be sexually assaulted. This has been reported to the police, yet they have done nothing. Apparently Ona Group have made accusations to the police about the Chairman and the President.

Following is a personal message from the President Carol Parkinson, who calls for continued support of the owners and explains who maintenance fees should be paid to:

A Personal Message from Carol Parkinson

I implore all owners to believe in, and support, the committee at this critical point in our fight to ensure the resort stays ours.  On a personal level I cannot bear the thought that all we have fought for, day in day out for two and a half years, could be lost because we lacked the courage to withstand the intimidation from Onagrup and hang on in there for a little longer whilst the strong committee and team of lawyers work in the background to bring this matter to a successful conclusion.

Despite having had four pretty upsetting days dealing with horrendous individuals, who frankly can only be described as the lowest of the low, I am still here in Tenerife and feeling strong (after a good sleep!) and positive.  Please do not let me, the team or the resort down and ‘hang in there’.  After four hours of questioning by a senior police officer on Monday on ‘trumped up’ charges of extortion and fraud the police are now listening and making investigations.  Our legal team here are working hard and we are gaining ground.  But we cannot do it if you do not assist with your financial support.  Please be brave and pay your maintenance to the Club as this is the only legal and rational way forward.  For those of you going to the resort in the next couple of weeks we will ring each of you to speak to you confidentially.  It has to be this way because unfortunately we have those amongst us who continually try to derail our plans by reporting back to WimPen and Onagrup.  If you pay your fees in advance to Onagrup you will have lost your money when that company is removed.  Pay to the Club that is being led by your elected committee members and supporters who are all owners you can trust as they love Los Claveles as much as you and have no interest other than justice.

There are owners who have continued to support WimPen, and who may have betrayed fellow owners with reports back to Mr Pengelly, and are responsible for the spreading of misinformation.   They have refused to see that a hostile takeover of this nature could ever happen – the evidence is now before you and surely even they cannot condone the aggressive and intimidating behaviour owners have experienced this week!

This has happened on other resorts where Onagrup took over and, as our lawyers have told us, the committees concerned with those resorts quickly rolled over giving Onagrup control.  We told you that we believed that Mr Pengelly had ‘sold’ your resort to Onagrup – a resort he did not own.  I have been told repeatedly in the last few days ‘We own this resort – you will do as we say’, ‘You are nothing’,  ‘You are no-one’,  ‘We will set the rules’, ‘You abide by our rules now’.

Onagrup is not solely responsible for what is happening at the resort.  All the appalling actions, verbal abuse assaults etc, over the past few days took place in full view of a senior member of Mr Pengelly’s management team. He stood and smirked as he saw Mr Weller and I assaulted. When asked how he could sleep at night when he saw this happening to owners who had provided him with a good living for years he replied that he had no trouble sleeping because we were in ‘his’ country and we were criminals.  

Even worse Mr Pengelly and other WimPen staff held the meeting that decided to remove Salvador from his livelihood and his home – leaving him homeless.  They also made the decision to remove Sue and Annie from reception. On Saturday Jarra (another member of reception) was sacked at a minute’s notice for ‘apparently’ handing out a key to an owner. They have sacked our maintenance team. There is only one left ‘because we are overstaffed’ and in their words ‘These are our rules now!’  All our loyal staff, who have served us well and with such good grace now are without an income and unable to support their families.

All of the above actions that I have described are shameful and appalling. It is not just our holidays that are being affected, but the people who have helped to make those holidays so enjoyable. Your Los Claveles may look the same, for the moment, but is not the place it was.  It can be again if we can regain control but we need the support of owners like yourselves.

More thoughts to contemplate:

If Onagrup was only taking what belonged to it why didn’t it do it via the law? The reason is it has no legal case!

Why did Onagrup remove all of our lovely staff?  Because they are trying to break us and to take the heart out of our lovely resort!  

Mr Pengelly tried to assure us that he was only doing what was best for our owners and there was nothing to worry about because nothing would change. We did not believe him and how right we were!  

Please owners think longer term and have faith in a committee that has got further than any other committee opposing Onagrup.  The resort is ours – stay with us, pay your maintenance to the Club ahead and do not pay Onagrup or you will lose your money.

This is a very heartfelt plea, Carol is in Tenerife to give help and support to those who are arriving and being refused their right to their apartments. She is ensuring that they do have other resorts to go to.

Following are two statements from owners showing their experiences, it is disturbing reading, their names have been removed in order to protect them..

Statement from Club Member G H, 14th May 2017

This is going to be hard to put into words and I cannot over stress what a disgusting and lying set of people we now have trying to take over our resort .
This is the first week after close down and because the committee expected some kind of confrontation Carol went out to help all owners in any way she could. Over the last few days she has worked tirelessly making sure owners that have been turned away have had some accommodation at other resorts, even going in the taxi with them.
Back at the resort she has been treated with contempt by the new manager who said that Carol was ‘nothing’ and he would be there for the next 25 years telling her to go away (using the F word). She has been continually hounded by the security and sworn at with extremely vile language on many occasions, also outside the resort jabbed in the side by a man in a suit, saying she was low life and pointing to her mouth, threatening to put his manhood somewhere that it should not go this was followed by some other vile threats.
Having reported this to the Police, Carol, at the police station was confronted by a senior policeman asking why she should be believed when she had been reported for crimes in his country. It transpires that the resort management, ONA had sent a many paged document to the police reporting that Carol along with Albert had been stealing money from the resort. (This must be the maintenance which goes into OUR bank account ‘Club Los Claveles Ltd’). Carol is back with the police and lawyers tomorrow (Monday). There is far more but this will do for now.
I must say that Carol is out there, on her own, trying to do a fantastic job for the rest of us owners and I have never heard her on the phone sound so frightened and intimidated by the bullies, tired by the continuous battle and near breaking point maybe by not eating and having a break. This is one lady that really deserves our support in the same way as she is supporting us. There is no financial gain or bathing in glory, just the love of our resort and keeping it under our control for the years to come.

Statement from Club Member R O  

Friday 19th May 2017

I left Los Claveles last night, after a very disturbing week, so I feel I need to be brutally honest with everyone.

Yes I paid my fees for week 20 to Ona because it was before the option to pay the Club was set up.

Yes. I was a ‘fence sitter’.  I didn’t want to get involved with the politics of it all.  I just wanted my holiday.

No I had never been to an AGM or even an owners’ meeting.  (For your information I own 7 weeks spread through the year).

THAT IS ALL GOING TO CHANGE AFTER THE BLATENT INTIMIDATION AND DISGUSTING BEHAVIOUR I WITNESSED FROM ONAGRUP ON THE RESORT LAST WEEK.

I could write pages, and will do so if it will help.  And yes it was me that stood and asked the leading questions at this week’s owners’ meeting.

The outcome of all of this is that I have just paid my maintenance fees for weeks 29 and 30 to the Club.

If I am refused admission to the resort then so be it, I will be camping outside.

This Ona Bulldozer has to be stopped before it is too late. I have pledged my support to Carol in person.

And any committee members reading this, I will do anything I can to help you out.

R O

Here we publish two press releases from the Club Committee at Los Claveles:

los claveles logoCLUB LOS CLAVELES

PRESS RELEASE 10 MAY 2017

For Publication

Elderly British holiday makers threatened with being refused access to their own timeshare apartments in Tenerife

Long term, loyal timeshare owners, many of whom are now elderly pensioners, who are due to arrive on Friday for the start of their annual holiday at Club Los Claveles in the Tenerife resort of Los Cristianos, are being threatened with being refused access to their holiday apartments by Spanish company Onagrup despite having paid for their accommodation. The company took over the management contract for Los Claveles  without any consultation with the owners or their representatives when it bought over WimPen Leisure Management SA in January 2015. It quickly came into conflict with owners due to its heavy-handed, controlling approach, ignoring the wishes of the owners, most of whom have been members of Club Los Claveles for nearly 30 years.  The owners served notice on Onagrup to terminate the management contract in July 2015, subsequently taking the case to arbitration when Onagrup failed to accept this. Controversially, Onagrup has defied interim orders from arbitration and refuses to accept that it no longer has a management role for Club Los Claveles. It continues to use bullying tactics against the owners, and their Club committee members, who have been paying their own legal expenses over the past 2 years to fight to regain control over what is legally theirs.

Onagrup refuses to acknowledge that WimPen’s contract to manage Club Los Claveles came to a natural end at the beginning of May 2017 no matter what the outcome of arbitration , and refuses to hand back the Club’s assets. Unless there is an eleventh hour change of course by Onagrup, the police will be called by the Club President to protect owners from this obstructive intimidation and criminal activity on Friday morning when the first owners arrive to take occupancy of their apartments.

Background Information

The Los Claveles timeshare resort was one of several constructed in the Canary Islands and managed by well-known British company Wimpey Leisure. After a management buy-out in the nineties, the running of these resorts was taken over by WimPen Leisure Management, with former Wimpey Director Ivan Pengelly at the helm.

All seemed to be well for the next 25 years until WimPen was sold to Barcelona-based timeshare marketing company Onagrup in January 2015, and then the trouble began. A major dispute over Onagrup’s handling of the changeover resulted in the owners taking their case for the early termination of WimPen’s contract to arbitration in March 2016. In the meantime, WimPen’s contract expired at the beginning of May 2017, but it has continued to control what goes on at the resort. Snr German Castro, Onagrup’s General Manager has been writing to British owners who are due to arrive on Friday for the start of their annual holiday at Los Claveles to tell them that they will be refused access to their villas unless they pay their maintenance fee to WimPen. Elderly owners are alarmed at the prospect of a private security firm reportedly being hired to escort them from the resort without anywhere to stay despite them having paid their maintenance fees to their new, legally appointed Club Administrator. WimPen is also legally obliged to pay maintenance to Club Los Claveles under its new Administrator but it has refused. So, a major confrontation is set to take place on Friday morning when the Club’s President and long term owner at Los Claveles, Mrs Carol Parkinson, will be defending the owners’ right of access to their timeshare property, supported by the Administrator’s legal representative.

This Press Release has been issued by the Club Los Claveles Owners Committee. For further information please contact:

In the UK: Club Committee Member Roger Lindsay  rogerlindsay123@btinternet.com                                     tel +44 1874 731124 / +44 7399 280302

In Tenerife: Club President Carol Parkinson  carol.parkinson@ntlworld.com                                                                   tel +44 7931 778886

los claveles logoCLUB LOS CLAVELES

PRESS RELEASE 12 MAY 2017

For Publication

Shock Dismissal of Much Admired and Popular Manager and Reception Staff from Los Claveles Timeshare Resort, Tenerife

In an alarming escalation of events at the Los Claveles timeshare resort in Tenerife, long standing Resort Manger Salvador Garcia , and his reception staff Sue and Ann, have been summarily dismissed  from their positions by Onagrup. This follows earlier threats by Onagrup to refuse access to timeshare owners who are due to arrive today for the start of their annual holiday at Club Los Claveles, despite having paid for their accommodation.  The group claims that it no longer has confidence in these long term members of staff, in stark contrast to owners who for years have consistently rated them very highly indeed.  It is reported that Onagrup has replaced them with its own staff, and sent in their own lawyers and a private security firm to manage the resort,  in defiance of Club Los Claveles’ appointment of a new Administrator following the expiry of Onagrup’s management contract at the beginning of this month.

The President of the Club and its legal team are in attendance to make representation to Onagrup and protect owners’ right of access to their property.  

This Press Release has been issued by the Club Los Claveles Owners Committee. For further information please contact:

In the UK: Club Committee Member Roger Lindsay  rogerlindsay123@btinternet.com                                     tel +44 1874 731124 / +44 7399 280302

In Tenerife: Club President Carol Parkinson  carol.parkinson@ntlworld.com                                                                   tel +44 7931 778886

Los Claveles Community of Owners, Asomada de Los Ceres, 38650

Los Cristianos, Tenerife.

 

This is one of the most disgusting stories that we have ever heard in the world of timeshare, it really does look like a return to the bad old days when timeshare in Tenerife was ruled by the likes of John “Goldfinger” Palmer. Everyone thought that those days were over, it would seem not.

Ona Group, who are still using Pengelly to sign everything are no better than those in the past. Not just manhandling owners off the resort but also sacking long serving and loyal staff such as the manager and the reception staff. The manager who also had a home on the resort as part of his job was only given 2 hours to clear out!

Owners are also being told not to even bother trying to contact the Club Chairman Albert Fletcher, as he is in jail for embezzling funds. Inside Timeshare spoke with him today and this UK Magistrate is free and ready to fight this injustice.

Inside Timeshare will publish any information it receives on this subject, including testimonies from those who have suffered the ordeal of this heavy handed  removal or denial of access.

This is a cause which all timeshare owners need to get behind, if any of you know how to start a crowd funding campaign to help fund the legal battle ahead, please contact Inside Timeshare or one of the committee members.

Your support is paramount in this before it escalates and involves other clubs, or even other management companies see it as a license to do what they like.
support

trust02

Trustees: Independent or Part of the Problem?

For many timeshare owners the belief is that the trustees who hold their ownership in trust are independent, but this does not appear to be the case.

 

Information is coming to Inside Timeshare from various sources and our own research, which show there is a possible conflict of interest between one major trustee and the resorts management companies. If this is indeed the case, then there is no independence, the trustees are part of the industry and a conflict of interest does actually exist.

 

One example is the Alanda Club Marbella SL, one of the directors is Phillip Broomhead, who also happens to be a director at FNTC (First National Trust Company). (see pdf links) This club is also part of the Alanda Group of companies which the ONA Group acquired around 2011.

alanda-club-marbella-sl_-datos-identificativos-y-financieros-_-infoempresa

alanda-club-marbella-sl_-identifying-and-financial-data-_-infoempresa

So, when the ONA Group acquired Wimpen, the FNTC would have been duty bound to have advised the owners of the fact that a ”conflict of Interest” had now arisen. With this particular link it does appear that FNTC were no longer “independent trustees”.

 

To the Wimpen owners, it appears that Phillip Broomhead is the link between Wimpen and the ONA Group. The owners committee, from information received wanted a transfer of Trusteeship to another company Hutchinsons, but it appears that FNTC refused to transfer this. This does beg the question, is it because the FNTC do have a “Conflict of Interest”?

 

One source also passed on some of their own research, this led to the “Panama Papers” where they found that the owning companies of their club weeks were: FNTC First Nominee and Second Nominee.

 

FNTC First Nominee Ltd is also listed as a shareholder of Regency International Services Ltd, alongside Mossack Fonseca with the intermediary being First Names Group. As we know the Regency Palace Hotel and Club had to close down for tax reasons, with Luis Comacho being prosecuted for failing to hand over more than 15 Million Euros to the Portugese tax authorities. He has also been barred from holding any directorships.

 

The trustees who hold the owners weeks are FNTC, it is alleged that they were either ignorant of the fact or even complicit in the events which befell this hotel. Apparently many owners have been met with a wall of silence and have not received any help when contacting FNTC. How many of these owners have lost all their rights?

 

FNTC also have an involvement with Club Jardine del Puerto in Puerto Banus, with many problems befalling the owners at this resort. This particular resort has caused the owners many, many years of grief, it was also the subject of an investigation by the late Sandy Grey.

 

One incident is when the founding members tried to stop an AGM, with Phillip Broomhead of the FNTC representing the founding members, claimed that the AGM was illegal. This followed the move by Declan Kenny also of FNTC, to persuade the club to sell back around 650 weeks to one of his suggested enterprises. FNTC also backed the sale of weeks as “floating” and as we know under Ley 42/98 of the Spanish Timeshare Act, these weeks are illegal. This has been verified on several occasions by the Spanish Supreme Court in Madrid, the highest court in the land!

 

It must also be pointed out that the present CEO of the RDO is one Paul Gardner Bougaard, who was also once a director of FNTC. FNTC are also an RDO member and therefore should be subject to the code of conduct and ethics. Somehow this does not look like the case.

 

So the question of independence of the trustees from the industry, does look very dubious indeed, it is up to you the reader to decide. But do bare in mind this is the first of many articles on this subject, as more information comes to light through research and information received it will be published here.

 

If you have any information on this article or any timeshare matter or have any questions, contact us through the contacts section.

breaking news

Supreme Court Rule for 2nd Time on Fractional: CLA Press Release.

Late on Friday 30 September 2016, Canarian Legal Alliance issued a statement on the latest Supreme Court victories. This involved two rulings by the Supreme Court on another aspect of how timeshare is sold. (see the full release below).

 

This particular ruling confirms what many believed was in fact timeshare, but was being sold as something completely different and outside the scope of the timeshare laws, Fractional. Inside Timeshare ran an article: Fractional: What is it? Back in April.

 

http://insidetimeshare.com/fractional-what-is-it/

 

In this article it was called a “Pig in a Dress”, mainly because sales staff were promoting it as property and an investment, also as a way out of your timeshare contracts. In the article it explained what fractional ownership actually is, genuine fractional is a real estate transaction, usually by a group of people going into partnership to purchase a property outright and sharing the costs. This type of transaction would be done following normal real estate practices, it would also follow the trends of property prices, either up or down, allowing the owners to sell on the open market as normal. The other aspect is that you would know the other owners, you would then be bound with them in a contract covering; use, costs and the rules governing the sale of any given share. In the model sold by the timeshare companies, it is doubtful if you would ever meet with the other owners of your fraction, let alone know them.

pigdress
I am not timeshare, I am fractional!

In the first case to be ruled on by the Supreme Court, Puerto Calma Holiday Club Finland, had sold a so-called fractional to a client, implying that they were purchasing a share in the property. They even had the contracts signed in the presence of a notary, just to add credibility to the deal. The Supreme Court ruled in this instance this was not a property sale but did in fact come under timeshare regulations, therefore it is timeshare, awarding over £235,542 to the client. Under these laws it is illegal to sell any timeshare product (including fractional) as an investment.

 

Now remember, the First National Trust Company, who are the trustees of the Club la Costa Fractional Property Owners Club, did state and warn CLC in 2012, that fractional should never be sold as an investment. This clearly shows that even FNTC believed that fractional fell into the scope of timeshare laws. (See link below)

 

http://clcmembers.blogspot.com.es/

FNTC

The second ruling has come against another Gran Canarian operator, Palm Oasis, Tasolan SL, in Maspalomas. In this ruling the court rejected the belief that suggesting to timeshare owners they actually own a share in the property is designed to evade the timeshare laws. This then leaves the purchaser without any legal protection. The court in this instance awarded the client over 20,000 euros. They also reaffirmed that contracts over 50 years (perpetuity) are illegal.

tribunal supremo

This latest news now puts into doubt the legality of other fractional contracts sold by other operators, including Club la Costa and Diamond. Is this the start of a new round of litigation, putting another black mark on the timeshare industry.

 

The question also needs to be asked, why has the RDO not made any comment of this in the past?

 

Why have the RDO not warned their members that they may be selling another product illegally?

 

The simple answer is the RDO is paid by the industry and works only for the industry. After all an RDO member the FNTC did warn about this along time ago. Did the RDO just choose to ignore their advice?

 

CLA Press Release Friday 30 September 2016  CLA Logo

Good Afternoon

SUPREME COURT VICTORY AGAINST PALM OASIS

 

Canarian Legal Alliance is proud to be able to announce another ground breaking decision of the Supreme Court in clarifying and declaring illegal the modus operandi of Palm Oasis and resorts using similar schemes.

This company in common with, for example, Puerto Calma in Gran Canaria, in the name of timeshare sold their clients an indivisible share of a property and suggesting that timeshare laws did not therefore apply, leaving their purchasers unprotected.

 

This sentence clearly rejects the notion that suggesting to timeshare owners that they actually own a fraction of a property evades timeshare laws. Implying that the clients are, in any way, owners of the property is strictly forbidden in law

 

The justices of the highest ranking court in Spain have no doubt that timeshare law does and must apply and accordingly declared our clients contract null and void on the basis that its term exceeded the 50 year maximum. The clients were awarded over 20,000 euro.

 

With this ruling the Supreme Court has maintained their consistency in finding “in perpetuity” contracts to be illegal, just as they pronounced 18 months ago as doctrine in favor of another Canarian Legal Alliance client. Since that time we have celebrated numerous victories at all levels of the Spanish legal system and against a whole range of different timeshare resorts. Our law firm is not only the first one, but still the only one to have brought timeshare matters before the Supreme Court for discussion.

Canarian Legal Alliance is the market leader in payouts to unhappy timeshare owners with over 2 million Euros already PAID BACK to our clients. If you would like to receive expert advice on the legality of your timeshare contract do not hesitate to contact us, the law firm who made legal history in Spain.

 

CLA  wishes you all a very nice relaxing weekend

http://www.canarianlegalalliance.com/cla-supreme-court-success-against-puerto-calma/

http://www.canarianlegalalliance.com/supreme-court-victory-against-palm-oasis/

If you need any information in this article or have any question about any timeshare matter, Inside Timeshare will be pleased to help. Contact Inside Timeshare and we will get back to you.

 

pound-sign

Latest News: Massive Victory for CLA Clients.

It has just been announced the Supreme Court has made a significant ruling against Puerto Calma, Holiday Club Finland.

 

Clients of the law firm Canarian Legal Alliance have been awarded a staggering £235,542 plus interest and legal fees. The contract was also declared null and void.

 

According to CLA, their clients knew they were purchasing a timeshare, but Puerto Calma tried to disguise this by stating they were buying a share of the property. This is commonly known as Fractional ownership, which apparently comes under timeshare law not real estate. The contract was signed before a notary in order to improve credibility, but the Supreme Court has stated that this is timeshare and therefore comes under the timeshare laws as laid out in Spain.

 

This will have a significant impact on other timeshare companies who sell Fractional ownership. In fact the First National Trust Company, who are the trustees for the Club la Costa Fractional Property Owners Club, did state in 2012 that Fractional should not be sold as an investment, which would suggest that even they believe it comes under timeshare laws. This ruling would seem to verify that position. (see following links)

 

http://insidetimeshare.com/fractional-what-is-it/

 

http://clcmembers.blogspot.com.es/

 

It was also announces on 19 September, that CLA had a victory at the High Court No3 in Tenerife against Silverpoint / Resort Properties. Their client this time was awarded £16,722 plus legal interest with the contract being declared null and void.

 

In this case the court followed the rulings of earlier Supreme Court decisions that contracts in perpetuity are illegal. Again this show the significance of the influence the Supreme Court is having on the lower courts.

 

So it would seem that Canarian Legal Alliance is going from strength to strength, achieving victories on an almost daily basis. The tenacity of the lawyers is certainly paying off, So congratulations the legal team and their respective clients.

champagne

If you require any information regarding this or any timeshare matter, please contact Inside Timeshare and we will point you in the right direction.

CLA Supreme court success against Puerto Calma ( Holiday Club )

 

Fractional 1

Fractional. What is it?

Fractional Ownership, is it just another word for Timeshare?

 

Well it depends on where you are and what scheme you have entered into. In the United States Fractional is regulated by Real Estate laws.

 

Generally a property is divided up into say  Four, with owners each having 3 months use. These properties may be Freehold or Leasehold with either 50 or 99 year leases. In the US the value of these properties tend to follow the values of the property market. It gives the owners a quality holiday home without laying out for a second home. These properties also tend to be on managed resorts or condominiums, so maintenance fees are usually applicable. The positive side to this is when it is time to give it up, it can be sold and if the market value has increased then thank you I make a profit.

 

The problem now comes with Europe, Fractional Ownership is governed by Timeshare law. It is the resorts that are marketing it, Club la Costa and Diamond being the biggest. So if it is subject to Timeshare laws, then obviously deposits paid within the 14 day cooling  off period applies, as does the selling of it as an investment.

CLCdri logo

During my research I have spoken to many people who have purchased Fractional, all have told me the same thing. They purchased to be rid of their timeshare, and the only way was to take on a fractional, owning several weeks for periods starting at 5 years up to around 20 years. At the end of this period the property would be sold and they would reap the rewards, then being free from their timeshares. Well to me this smacks of what a friend described as “A Pig In A Dress”.

pigdress

The property is going to be sold, but all fractional owners must agree. Did they all buy at the same time and for the same period?

 

If not how can any agreement be reached, also who has the controlling shares?

 

Somehow I cannot see the resorts selling off all the available Fractions, thus losing control.

 

So what happens at the end of this period, does the consumer revert back to their original timeshare?

 

This scheme is still in its infancy in Europe, it looks and sounds great with the slick, smooth, fast talking sales rep. But it does look as though it is not property you are buying but the Right of Use. In other words it seems that it is just another way of selling Timeshare. We have already seen another term take over from that dreaded word, Holiday Ownership.

slicksaleman

On the Club La Costa Members Blog dated 10th July 2012, it states that First National Trust Company who are the trustees of the Fractional Property Owners Club, said that “this model should never be advertised as an investment”. I wonder if the sales staff have been told this in training, or have they been told to ignore it? We have seen this with other aspects of timeshare sales in the past and look where that has led, litigation for misrepresentation and mis selling.

 

http://clcmembers.blogspot.com.es/

 

Is this just another scheme like points or floating weeks to fleece you of your hard earned money?

 

Only you the consumer can answer that, unfortunately by the time you actually find out you may be the loser of thousands.

 

If you have been to a fractional presentation or have purchased, Inside Timeshare would like to hear your story and your views. Even if you are happy with your purchase I am willing to publish your comments, unlike many other blogs Inside Timeshare looks for balance.

balance