Timeshare Regulations 1997

JurisdictionUK Non-devolved
CitationSI 1997/1081
Year1997

1997No. 1081

CONSUMER PROTECTION

The Timeshare Regulations 1997

24thMarch1997

25thMarch1997

29thApril1997

ARRANGEMENT OF REGULATIONS

1. Citation and commencement.

2. Application of the 1992 Act.

3. Obligation to provide information.

4. Advertising of timeshare rights.

5. Obligatory terms of timeshare agreement.

6. Form of agreement and language of brochure and agreement.

7. Translation of agreement.

8. Obligation to give notice.

9. Rights to cancel timeshare agreement.

10. Advance payments.

11. Cancellation of timeshare credit agreement.

12. Civil proceedings.

13. Offences: supplementary provisions.

14. Consequential amendments.

SCHEDULE

Schedule to be inserted in the Timeshare Act 1992

Whereas the Secretary of State is a Minister designated( a)for the purposes of section 2 of the European Communities Act 1972( b) in relation to matters relating to consumer protection:

Now, therefore, the Secretary of State in exercise of the powers conferred on him by section 2(2) of that Act and of all other powers enabling him in that behalf hereby makes the following Regulations:-

Citation and commencement

1. These Regulations may be cited as the Timeshare Regulations 1997 and shall come into force on 29th April 1997.

(a) S.I. 1993/2661.

(b) 1972 c.68.

Application of the 1992 Act

2.-(1) Section 1 (application of Act) of the Timeshare Act 1992( a) ("the 1992 Act") is amended in accordance with paragraphs (2) to (8) below.

(2) In subsection (1)(a) (definition of "timeshare accommodation") for "intermittent periods of short duration" there is substituted "a specified or ascertainable period of the year".

(3) In subsection (3) (rights excluded from subsection (1)(b))-

(a) paragraph (a) (rights as the owner of shares or securities), and(b) paragraph (c) (rights under a collective investment scheme) and the word "or" immediately preceding it,

are omitted.

(4) After subsection (3) there is inserted-

"(3A) For the purposes of sections 1A to 1E, 2(2A) and (2B), 3(3), 5A, 5B and 6A of this Act, subsection (1) above shall be construed as if in paragraph (b), after "become" there were inserted", on payment of a global price,".

(5) For subsection (5) (definition of "timeshare credit agreement") there is substituted-

"(5) In this Act "timeshare credit agreement" means an agreement, not being a timeshare agreement, under which credit which fully or partly covers the price under a timeshare agreement is granted-

(a) by the offeror, or(b) by another person, under an arrangement between that person and the offeror;

and a person who grants credit under a timeshare credit agreement is in this Act referred to as "the creditor".

(6) Subsection (6) (agreement cancellable under section 67 of the Consumer Credit Act 1974( b) is not a timeshare agreement or a timeshare credit agreement) shall cease to have effect.

(7) After subsection (6) there is inserted-

"(6A) No timeshare agreement or timeshare credit agreement to which this Act applies may be cancelled under section 67 of the Consumer Credit Act 1974.".

(8) After subsection (7) there is inserted-

"(7A) This Act also applies to any timeshare agreement if-

(a) the relevant accommodation is situated in the United Kingdom, or(b) when the agreement is entered into, the offeree is ordinarily resident in the United Kingdom and the relevant accommodation is situated in another EEA State.

(7B) For the purposes of subsection (7A) above, "the relevant accommodation" means-

(a) the accommodation which is the subject of the agreement, or(b) some or all of the accommodation in the pool of accommodation which is the subject of the agreement,

as the case may be.".

(9) In section 12(6) of the 1992 Act (definitions) after the definition of "credit" there is inserted-

""EEA State" means a State which is a Contracting Party to the Agreement on the European Economic Area signed at Oporto on 2nd May 1992 as adjusted by the Protocol signed at Brussels on 17th March 1993,".

(a) 1992 c.35.

(b) 1974 c.39.

Obligation to provide information

3.-(1) After section 1 of the 1992 Act there is inserted-

"Obligations to provide information.

"1A.-(1) A person who proposes in the course of a business to enter into a timeshare agreement to which this Act applies as offeror (an "operator") must provide any person who requests information on the proposed accommodation with a document complying with subsection (2) below.

(2) The document shall provide-

(a) a general description of the proposed accommodation,(b) information (which may be brief) on the matters referred to in paragraphs (a) to (g), (i) and (l) of Schedule 1 to this Act, and(c) information on how further information may be obtained.

(3) Where an operator-

(a) provides a person with a document containing information on the proposed accommo dation, and(b) subsequently enters as offeror into a timeshare agreement to which this Act applies the subject of which is the proposed accommodation,

subsection (4) below applies.

(4) If the offeree under the agreement is an individual who-

(a) is not acting in the course of a business, and(b) has received the document mentioned in subsection (3) above,

any information contained in that document which was, or would on request have been, required to be provided under section (2)(b) above shall be deemed to be a term of the agreement.

(5) If, in a case where subsection (4) above applies, a change in the information contained in the document is communicated to the offeree in writing before the timeshare agreement is entered into, the change shall be deemed for the purposes of this Act always to have been incorporated in the information contained in the document if-

(a) the change arises from circumstances beyond the offeror's control, or(b) the offeror and the offeree expressly agree to the change before entering into the timeshare agreement,

and the change is expressly mentioned in the timeshare agreement.

(6) A person who contravenes subsection (1) above is guilty of an offence and liable-

(a) on summary conviction, to a fine not exceeding the statutory maximum, and(b) on conviction on indictment, to a fine.

(7) In this section "the proposed accommodation" means-

(a) the accommodation which is the subject of the proposed agreement, or(b) the accommodation in the pool of accommodation which is the subject of the proposed agreement,

as the case may be.

(8) This section only applies if-

(a) the accommodation which is the subject of the proposed agreement or agreement is accommodation in a building, or(b) some or all of the accommodation in the pool of accommodation which is the subject of the proposed agreement or agreement is accommodation in a building,

as the case may be.".

(2) The Schedule to the 1992 Act shall be numbered Schedule 2.

(3) Before that Schedule there is inserted the Schedule set out in the Schedule to these Regulations.

Advertising of timeshare rights

4. After section 1A of the 1992 Act there is inserted-

"Advertising of timeshare rights.

1B.-(1) No person shall advertise timeshare rights in the course of a business unless the advertisement indicates the possibility of obtaining the document referred to in section 1A(1) of this Act and where it may be obtained.

(2) A person who contravenes this section is guilty of an offence and liable-

(a) on summary conviction, to a fine not exceeding the statutory maximum, and(b) on conviction on indictment, to a fine.

(3) In proceedings against a person for an offence under this section it shall be a defence for that person to show that at the time when he advertised the timeshare rights-

(a) he did not know and had no reasonable cause to suspect that he was advertising timeshare rights, or(b) he had reasonable cause to believe that the advertisement complied with the requirements of subsection (1) above.

(4) This section only applies if-

(a) the timeshare accommodation concerned is, or appears from the advertisement to be, accommodation in a building, or(b) some or all of the accommodation in the pool of accommodation concerned is, or appears from the advertisement to be, accommodation in a building,

as the case may be.".

Obligatory terms of timeshare agreement

5. After section 1B of the 1992 Act there is inserted-

"Obligatory terms of timeshare agreement.

1C.-(1) A person must not in the course of a business enter into a timeshare agreement to which this Act applies as offeror unless the agreement includes, as terms set out in it, the information referred to in Schedule 1 to this Act.

(2) If and to the extent that any information set out in an agreement in accordance with subsection (1) above is inconsistent with any term (the "deemed term") which is deemed to be included in the agreement under section 1A(4) of this Act, the agreement shall be treated for all purposes of this Act as if the deemed term, and not that information, were set out and included in the agreement.

(3) A person who contravenes subsection (1) above is guilty of an offence and liable-

(a) on summary conviction, to a fine not exceeding the statutory maximum, and(b) on conviction on indictment, to a fine.

(4) This section only applies if the offeree-

(a) is an individual, and(b) is not acting in the course of a business.

(5) This section only applies if-

(a) the accommodation which is the subject of the agreement is accommodation in a building, or(b) some or all of the accommodation in the pool of accommodation which is the subject of the agreement is accommodation in a building,

as the case may be.".

Form of agreement and language of brochure and agreement

6. After section 1C of the 1992 Act there is inserted-

"Form of agreement and language of brochure and agreement.

1D.-(1) A person must not in the course of a business enter into a timeshare agreement to which this Act applies as offeror unless the agreement is in writing and complies with subsections (3) to (5) below, so far as applicable.

(2) A person who is required to provide a document under subsection (1) of section 1A of this...

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