Timeshare Directive To Support The Fractional Ownership Sector - But Is More Publicity Needed?

PRLog (Press Release) – Jul 09, 2009 – On 3 February 2009 the European Parliament and Council of Ministers adopted a new European Directive covering the sales and marketing of timeshare, long-term holiday products, re-sales and exchange - with implementation due by all EU member states by 2011. The act will also apply to the fractional ownership industry, offering increased buyer protection and ensuring that developers act to a common set of standards - yet more needs to be done to publicise this to fractional developers and potential buyers, according to Newskys.co.uk.
Trevor Little, editor of fractional property ownership portal Newskys.co.uk, says: “The new regulations will directly impact on the activities of fractional ownership developers in Europe, and give buyers increased peace of mind. However, at present there is still work to be done to ensure that developers are fully aware of their obligations - and that buyers know about the protections available to them. With less than two years until the directive is fully implemented, it is essential these aspects are fully communicated now, so that costly mistakes aren’t made later.”
Brad Lincoln, CEO of fractional consultants The Best Group, agrees: “I don’t think developers are really aware of the directive yet. Of course, it isn't law yet, but part of the problem is that it is called the timeshare directive - had it been called the ‘timeshare and fractional directive’ it would be a lot easier. The danger is that some developers will argue that they don’t fall under the directive as they don’t offer timeshare - but they will making a big mistake.”
Richard McIntosh, chairman of trade body Resort Development Organisation, told Newskys: “The Timeshare Directive applies directly to the fractional business, although not all fractional businesses wish to acknowledge this at present. However, purchasers should be offered the full protection of the law, including the extended cooling-off period.”
The resort development industry has traditionally been regulated by national laws which reflect the 1994 Timeshare Directive. This directive is based on three foundations of consumer protection - that the consumer receives enough information in the contract to be able to make an informed decision, that there should be a ten day ‘cooling-off’ period with no penalties should they decide not to proceed, and that no money is required during this period.
The difficulty with the 1994 directive was that actual implementation laws differed from country to country, creating a fragmented regulatory picture. In February, the European Parliament adopted the new directive, covering the sales and marketing of timeshare, long-term holiday products, resale and exchange - increasing the length of the cooling off period to 14 days, requiring full disclosure and ensuring common definitions and explanations of products are used. The directive will replace current national laws in 2011 and harmonise practices across Europe.
The new directive essentially offers increased protection for buyers, restricting the presence of negative sales tactics, and should minimise the negative headlines that timeshare has sometimes attracted in the past. McIntosh says: “This is good for buyers, and should put developers on a level playing field, and hopefully improve further the reputation of the industry in the eyes of the consumer - and then in time the press as stories of rogue companies decline.”
Little concludes: “In addition to overhauling timeshare itself, the new directive should help ensure that the fractional sector doesn’t suffer from some of the practices that have tainted timeshare in the past - a good product which was badly sold by some operators. At a time when the European fractional industry is starting to grow, restrictions on rogue developer practices, encouragement of best practice and strict buyer protections will all help ensure this growth is properly regulated and that consumers can confidently commit to, what for many of them is, a new and sensible way of owning overseas property.”
ENDS
Notes to editors:
A joint venture between TheMoveChannel.com and Richmond Green Group, NewSkys.co.uk is a new portal specialising in fractional ownership property. Combining TheMoveChannel.com’s technical and online marketing experience with Richmond Green Group’s knowledge of the fractional ownership sector through its consultancy business RGM Fractional, NewSkys is the place to find all the latest fractional ownership investment and lifestyle opportunities.
For further information, please contact +44 208 439 9496