Bonanza for Spanish timeshare buyers

There could be a double your money bonanza for people who have purchased a timeshare property in Spain, as a new court ruling looks set to spark-off an avalanche of timeshare compensation claims against developers.

The new Spanish court ruling can now be used by up to 400,000 European timeshare owners to seek compensation from illegal contracts signed after 1996 in Spain and industry experts believe that timeshare compensation claims could reach two billion Euros.

As property buyers already realise, under Spanish law, even if a property is sold on all debts and encumberments are passed to the new owners. If a timeshare property has changed its ownership, the new owners will still be liable for new compensation claims.

Magistrate D. Juan Carlos Socorro Marrero has ruled that a timeshare developer in Gran Canaria must pay back double the amount of the timeshare deposit taken within the cooling off period.

In a case brought against Anfi Sales SL, part of the Anfi Del Mar Group in Gran Canaria, the Magistrate commented:” The case of paying an advance instalment is in opposition to what is dictated in the law 42/1998, article 11, the second section of this mentioned rule permits the acquirer “at any time” to get back double the stated amount.”

Anfi Del Mar reportedly one of the most largest and luxurious timeshare developments in Europe, is now set for up to 10,000 new claims for timeshare miss-selling under the 1994 European timeshare directive. Anfi Del Mar was once owned by TUI, the largest travel agent in the world. The company, who own and operate several of the best known UK high street tour operators including Thomson, were also responsible for taking illegal timeshare deposits at Anfi from 2001 to 2004.

At present there are over 200 live claims for timeshare mis-selling against Anfi Del Mar in the Spanish court system and with fresh claims coming in at a rate of 10 a week before this ruling, it is not known what affect this will have on the stability of Anfi Del Mar.

Under Spanish law, even if a property is sold on, all debts and encumberments are passed to the new owners or if a timeshare property has changed its ownership, the new owners will still be liable for new compensation claims.

This timeshare ruling does not apply to straightforward property sales where Brits and other foreign buyers have acquired the freehold of the apartment or villa. In the case of Spanish bank repossessions, sold by specialists like PropertyInSpain.Net, all unpaid mortgage amounts and other debt is wiped clean and a new mortgage deal offered.

In other new and resale deals, using an independent Spanish solicitor ensures all other debts lodged against the property are paid off before registering the new deeds.