Author:
Phil
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Date Posted: 08:07:08 11/24/04 Wed
Firstly, I would suggest you check through all the paperwork you may have about your purchase. This may clarify your situation – now as I don’t have any paperwork for PC I am basing my post on the knowledge I have of timeshare and the resort in general. I could be wrong.
As Paradise Group, the original developer (also known legally as the founder member), is a British company it is more than likely that PC is run under the club system.
Here is a quote from the documents of a Club I do know to be run under this system.
“The Founder Members of X have formed a club known as X (“the Club”) through which the Club’s members acquire certain exclusive rights of occupation of apartments at different resort complexes. The Club Members’ rights are subject to and dependent upon the Club Member continuing to comply with the terms of the Constitution, Deed of Trust and Management Agreement and in particular the payment of annual management charges and any other charges properly levied on the Club Members as and when they fall due.”
The most important thing here is “rights of occupation”. When you purchase timeshare under the Club system you are usually buying rights of occupation and membership of a Club. Very rarely is the system deeded as well – obviously if you have a deed then the case is different. However, if, as several people have said on here, all you need to do to relinquish your membership/ownership is to return your certificate signed on the reverse, it would appear to me that all you have is a right of occupation.
You would be right in that Paradise Management never owned the resorts, however they would have had the management contract to run the resorts (but Paradise Group Limited or one of its companies as developer did own the resort). CLC will have bought lock stock and barrell, including amongst other things the management company or management contract (from their website “Club La Costa owns 20 resorts outright in Spain, on the Costa del Sol and Tenerife, Scotland and Austria.”). If this was not the case, I don't think CLC could change things willy nilly around the resorts as it has done/is doing. Paradise Group have no interests whatsoever in Paradise Club.
The management contract is awarded either by the Club or founder member (developer). Now as the Club is essentially its members and if the constitution allows it, then the Club can remove the contract from the current management company. This is what Loch Rannoch did. MacDonalds haven't sold on the resort.
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