Getting out of English Timeshares Contracts

Getting out of English Timeshares Contracts

Provided by TESS (David Cox).

TESS Paralegal Services Ltd (TESS Law) 

Dated November 27th, 2019.


In many cases, when a timeshare consumer become disgruntled, they claim the club they are members of, has an unfair set of rules and it’s those rules that prevent them for getting out of the obligation the club imposes. As the club does have a set of rules, they must be terms that are fair.

If it were just one of two consumer who felt the terms are unfair, it might be the case that they perceive a problem exists were it might simple be the case its fair not not from their understanding.

That said, when many members claim the terms are unfair then on the balance of probability it could well be unfair. When the majority are claiming unfairness, quite clearly eyebrows will lift, and an investigation will ensure by considering minds.

The first consideration is, the complaining consumers are all members of a clubs which has a set of rules called a constitution (unincorporated Clubs) of memorandums and articles (incorporated Clubs). It is generally these club rules which impart an obligation on its members to pay the maintenance fees or the yearly points acquisitions and forever (in perpetuity).

To claim unfairness can be difficult unless your lawyers is capable of establishing unfairness alledged.

With a hoist of company’s alleging to be Lawyers they may go to the actual rules which the club is founded upon and in some cases, they might apply past authorities regarding fair/unfairness. This can be helpful, but it does not get to the ‘nub’ of the issue as the first and principle consideration is “are the rules used by the club contrary to the model terms which are legislated for in E U regulations”.

What must be understood is that the Timeshare clubs are constructed for a purpose other than for trade craft of profession and have been modeled regarding their terms by the EU.

In Timeshare clubs, consumers are members thus, are classed as being in common ownership with others therefore the terms should be fair, balanced, rationale and reasonable so all members rights are preserved. That explained, the rules were devised by a trader and that trader is one member within the membership.

It is that same trader (or an associate) who supplies invoiceable services to the rest of the membership which establishes there is not a common purpose (one party pays and the other is enriched). As the incoming consumer members had no opportunity to amending, redraft add too to or taking away any of the terms they are deemed to be unfair by way of. The Unfair Terms in Consumer Contracts Regulations 1999

Unfair Terms

5.(1) A contractual term which has not been individually negotiated shall be regarded as unfair if, contrary to the requirement of good faith, it causes a significant imbalance in the parties' rights and obligations arising under the contract, to the detriment of the consumer.

(2) A term shall always be regarded as not having been individually negotiated where it has been drafted in advance and the consumer has therefore not been able to influence the substance of the term.

The terms presented in a lot of contracts are pre authored and appear weighed in favour of the merchant who drafted them. When drafting club rules, the author will seek to ensure that they are compatible with law and EU regulation. I.E the model terms accepted by regulators as being fair and balanced. Should the timeshare developer abdicate from these acceptable terms, they could well be unfair, as modeling does exist and may have been avoided in preference to other terms.

Should the developer avoid what has been deemed to reasonable, this begs the question why have they been altered?

On this matter and when the question has been posed an eerie silence ensues except for occasional rants saying, “these are the terms”.

In some cases, all the model terms have all been adopted except for the right to terminate membership. Quite clearly in these cases the model terms have been considered have been adopted however, the right to get out was removed which again begs the question “why has a fair term been removed”. As it has been removed, the courts have good grounds in which to apply the fair term, as to do so would be fair and reasonable by way of statute.