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More about Spanish Supreme Court’s decision declaring Timeshare Contracts in Perpetuity NULL & VOID Mar 9, 2015

In Spain access to the Spanish Supreme Court is very limited and their importance is very big.The judgements of the Supreme Courts interpret the law and how it should be applied in other Courts. There was a time when Anfi appealed the Supreme Court by seeking what was correct after there being two different decisions from the Court. Unfortunately for Anfi the Supreme Court ruled against them.

Decisions like this one could affect the bigger timeshare resorts such as; Palm Oasis, Puerto Calma, Beverly Hills Club, Hollywood Mirage and Palm Beach. Not only these clubs could be affected but it could affect and clubs that are based in Spain. The key issue has been that Law 42/98 included a Transitional Provision, the Second, which deals with Pre-existing regimes.

This provision gave the Clubs which were operating before the entrance into force of this Law the possibility to continue to exist forever, however, the weeks not yet sold would have to be adjusted to it. This means that the schemes can continue to exist in perpetuity, but the weeks sold within the scheme will have to have a maximum duration that can not exceed 50 years. After timeshare companies selling their weeks as perpetuity, it has now been clarified by the Supreme Court resolution.

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