June 20, 2006 at 9:28 am #51918
❓ Help please I am new to spanish property purchases and am trying to determine the validaty of this development, apparently by Polaris World with a number of ‘apartments’ bought off plan by Laguna Club for freehold resale on a weekly basis. Effectively buying 1/52 of a share of a property. I have taken onboard the comments on the forum re purchasing off plan but I would like to know of any experiences with this or Polaris developments. Thanks
June 20, 2006 at 9:32 am #62930
sounds like fractional ownership
June 20, 2006 at 9:38 am #62931
is fractional ownership leagal / common in Spain?
June 20, 2006 at 9:50 am #62932
not heard of it much in spain, more in other countries, used to be originally for the rich who would share planes etc instead of buying one.
It is legal though
June 20, 2006 at 9:57 am #62935
Thanks, just researching on the net. Seems very popular in the USA
June 20, 2006 at 10:09 am #62936
its ok if you want to use something 2 weeks a year only , but for me its not geat value
June 20, 2006 at 5:33 pm #62948
This is the Law ( from 1998) which expressly regulates the timeshare ownership of real estate:
Ley 42/1998, de 15 diciembre, sobre derechos de aprovechamiento por turno de bienes inmuebles de uso turístico y normas tributarias
July 5, 2006 at 8:35 am #63336
Thanks for the response, unfortunately I cannot read Spanish. Can you advise the mainpoints of the law regarding ‘timeshare’ ownership. I understand you are a lawyer and if I am to go ahead with the purchase I would be looking to appoint a Spanish Lawyer. Do you know of the status of the development and are you able to find out if a portion of the apartments have been purchased by ‘Laguna Club’
July 5, 2006 at 10:11 am #63343katyBlocked
Timeshare or whatever other name it goes by, is a way of getting you to pay a large sum of money to commit yourself to holidaying in the same place every year and paying at least 250 pounds a year in maintainance charges for an apartment which you could rent for 250 (or less) without paying the lump sum. Walk into any of the timeshare apartment complexes and with the exception of July and August you can rent for less than the owner is paying in yearly charges. They are legal in most cases but it is still a crafty way to get your money.
July 5, 2006 at 12:34 pm #63350
I will try to do a summary of the Law this weekend. I have so little time these days…
July 9, 2006 at 2:30 pm #63496
The promised abstract of some aspects of the Time-share scheme Act. Please not that there plenty of details not mentioned in this brief.
It only can be a proper object of the “time share scheme” those real estate elements that can be used as dwellings, not as premises. So that, it is needed the certificate of fitness for habitation before the set up of this scheme.
The “time-share” scheme needs to be formed on a whole building, not on separate elements of the building. The partial cancellation of the scheme is allowed if the physical identity of the building and the pre-existing rights are respected. A combinated operation with another scheme is allowed if that other scheme is touristic as they share common features and therefore clients and other right holders won’t be damaged.
The time of the scheme is minimum 3 years and maximum 50.
Ownership does not belong to thee time-sharer but to the person who sets up that scheme over his own property. The time sharer has property rights over the dwelling but it is not an ownership. The owner must guarantee that the holder of the property rights over his ownership will receive every service included in that title. The rights over the property that he is transferring are not of absolute property but of limited character ( time limits)
The owner must set up this scheme in a public deed, it is a constitutive requirement and it needs to be registered in the Land Registry before the transmission of time-sharing rights, so that both the Notary and Registrar can check out the legalities over it and it can be made public. Therefore the purchasers, before and after the transmission, can go to the Land Registry to get essential information about the specific scheme over his purchase, with full guarantee of legality.
The manager of the scheme (if there is a company different from the developer or the owner) needs to be present at the signature of the deed. If the developer is assuming this task, it needs to be expressly stated before the Notary.
The scheme can be cancelled by the owner if the time-sharer doesn’t pay the instalments for at least one year.
July 9, 2006 at 2:47 pm #63497katyBlocked
There is usually some clause inserted whereby any disputes are according to law where the companies are registered ie. Cayman islands, Thailand or something similar!!
July 9, 2006 at 5:39 pm #63504
Who would consider a 1/52 (1 week) part ownership of anywhere in Spain, or any timeshare come to that, because that is what this seems like to me. If you want a week in a PW resort, rent and apartment for the week for a few hundred euros.
The sellers of this scheme may well say you can benefit from capital growth. Get real, any capital growth is diliuted by 52 (or 26 if you but two weeks etc.) Also, what capital growth? You can be finished resale (never occupied) PW property cheaper than PW are selling off plan stuff for 2/3 years in advance.
Also, you will be liable for all the PW charges (granted diluted by 52 or 26 etc.)
Also consider this, why is timeshare no longer flavour of the month. Because most of the rogue timeshare salespeople are now working for REA’s in Spain.
Finally, will you be able to sell this 1/52 share in a PW property. I doubt it somehow
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