Time Sharing Contracts

Students: Gabriela Rošková Marína Gandelová

Content of the presentation

• Definition of TSC• History – beginning of the use of TSC• Practical Use• Legislative framework• Pros and Cons

Definition• Consumer contract• TSC = A form of shared property ownership,

commonly in vacation or recreation condominium property, in which rights vest in several owners to use property for a specified period each year.

• Exclusive right to use a property for a specific time

• attractive service - cheap, usually higher standard than hotels/appartments

• effective way of using an estate

History and practical use

• 1st appeared in the UK in 1960s• Used for enjoying vacation destinations• Holiday home sharing• Cottages, condominium units• Possibility to rent to a third person• the costs of timeshare can be different depending

on the chosen period

Legislative framework• European Directive 94/47/EC of the European

Parliament and Council on the protection of purchasers in respect of certain aspects of contracts relating to the immovable properties on a timeshare basis

• Later - review adopted on 14 January 2009 of the European Directive 2008/122/EC

• as a guarantee of consumers´ protection, EU regulated main principles that have to be obeyed when entering into contract

• 2 forms: 1. fixed period of time – purchaser buys the

right to use a property for the fixed and precisely determined periond of time of the year

2. flexible period of time: purchaser buys e.g. 1 week but each year has to reserve the pricise date in advance

• The contract must be in writing otherwise it´s void. Furthemore it must be written in a language that the consumer understands.

• A right to rescind the contract is regulated differently in all countries ( e.g. Slovakia – within 14 days since the contract was signed)

Pros and cons of TSC

• PROS

• Good investment

• Additional services ( fitness,

bars, restuarants, pools)

• Higher security- often monitored

• Maintenance services provided

• CONS

• Floating price

• Less privacy

• Only available for fixed period

of time

Thank you for your

attention.Grazie !