What Is Timeshare?

The concept of Timeshare is not new; there are simply many more companies offering this type of shared ownership. In basic terms, what you are offered for a sum of money is a number of weeks annually in a property for the lifetime of the agreement. In practice, the scenario may be much more complicated, and there have been many cases highlighted where Timeshare scams have left investors bereft of their cash, and with nothing (or something very diluted) in exchange. On the other hand, there are very many thousands of contented Timesharers who happily visit their shared properties each year, and have had no complaints. In any case, it pays to weigh up this option very carefully.

It is no mystery how many of the Timeshare ‘touts’ try to get their business – many of you may have been accosted whilst out and about in the Algarve (as in southern Spain – their other big hunting ground). These so-called OPCs (Outside Personal Contacts, or Off-project Contacts) hang around busy tourist areas, such as ‘the Strip’ in Albufeira, offering scratch cards to passers-by, with the lure of instant prizes. Once you have succumbed, in order to claim the said prize, you are usually subjected to a trip to a presentation on the delights of owning your own timeshare property.

I have heard of people being bundled into cars and taxis and frog-marched into these talks, where they have sat for up to six hours listening to some spiel or other. In the searing heat of summer, it is not surprising that the weaker amongst us might be tempted to sign up to something simply in order to escape. And that is part of their plan of course! OPCs were banned from the streets back in the early 90s, but they have slowly crept back out. They are not allowed to work without a work permit, so try asking them for proof of their legal status.

The same kind of tactic may also work in the UK. You may receive a phone call informing of a win, or by post, and asked to attend an event where similar grinding down of resistance may lead to your falling into their hands. This pressurised selling methodology has come under a lot of scrutiny in recent years, and consumers are protected by a ‘cooling off period’ (usually 14 days), wherein you can change your mind and call the whole thing off without incurring any charges. However, not everyone remembers this, and those days can soon seep away and you may miss out on the opportunity to take a more measured decision about the situation.

If you find yourself in a situation like the ones mentioned, be firm but polite, and do not feel obliged to sign anything on the day. Even if you are cajoled by the presenters’ constant reminders that the properties are selling fast and you will miss your chance, you must not put your name to anything you have not fully investigated and considered at home with all the necessary information in front of you. I know people who have sat through these events with raging headaches, feeling quite ill and trapped. I would say GET UP AND GO – whatever the reaction of the organisers.

But if Timeshare is something which attracts you, there are reputable companies you can go through, especially in many of the large tourist resorts in the Algarve (see next section). The Timeshare resort should be affiliated to one of two exchange organisations, which allow you to swap your weeks for time at other resorts around the world. The two groups concerned are RCI (Resorts Condominiums International) and II (Interval International). A fee is charged for membership of this scheme to allow you to exchange your holiday.

As a Timeshare holder, you have a certain number of ‘rights’ in Portugal, such as the right to a certificate of ownership at the Land Registry, the right to sell, mortgage or rent out the purchased units, guarantees that the resort management will act in a way to ensure the property is well cared for. The Portuguese Direcção Geral de Turismo should approve such schemes in Portugal, which is one way you can check their validity.