Changes in regulation of timeshare agreements
The new law supersedes the existing law on the protection of consumers when entering into agreements on the use of a building or a part thereof for a limited period of time under the existing provisions of Sections 58 through 65 of the Civil Code.
The amendment more precisely defines the individual types of agreements in which temporary use of an accommodation facility or services connected therewith are agreed upon. The amendment sets forth the minimum information that must be provided to the consumer well in advance prior to the conclusion of the agreement on a form the contents of which were determined by Governmental Regulation No. 38/2011, Coll., as well as information that must be contained in such agreement. The amendment also stipulates the language in which the information or the text of the agreement must be provided.
The amendment sets forth periods in which consumers may rescind the agreement without giving any grounds and without any costs arising to them on the basis of such legal act; the amendment also expressly prohibits that the timeshare provider request or accept any advance payment, other performance or securing thereof from the consumer before expiration of the period for rescission of the agreement. Where the agreement is rescinded in the events where the price is fully or partially paid through a loan provided to the consumer by the timeshare provider or a third party on the basis of an arrangement between such third party and the timeshare provider, such loan agreement shall be terminated without any costs arising to the consumer. The same applies to agreements on other related services, such as participation in an exchangeable system.
The amendment provides effective means of remedy to consumers in the event that the timeshare provider fails to fulfill the obligation to provide information or an agreement by, inter alia, extending the period for allowing the consumer to rescind the agreement without giving any reasons and without any sanctions or costs.
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