NEW NETHERLANDS ANTILLES TIME-SHARE LEGISLATION
Time-share owners will be better protected
Time-share means you are buying the right to spend time – usually one or two weeks once every year – in a particular property. On December 1, 2005, the new act on time-share rights became effective in the Netherlands Antilles (St. Maarten, Curacao, Bonaire, Saba and St. Eustatius). The Act contains specific provisions in respect of consumer protection, i.e. protection of time-share owners.
How does the Act protect buyers? All time-share agreements should contain basic minimum information. If you’re buying time-share you have a right to a five day cooling-off period from the day you sign the time-share agreement. During this time you can cancel the agreement for any reason, however, the cancellation must be in writing. The cancellation penalty may not exceed 3% of the purchase price, but only if cancellation takes place within the cooling-off period. The five day period will be extended with one month in case the time-share agreement does not contain the basic minimum information.
According to the Act, a time-share right (including a floating system) can be created by means of a notarial deed, which gives protection in case of bankruptcy of the owner. This specific right is called deeltijd-appartementsrecht (part-time apartment right). It is up to the parties whether they want this kind of right. The costs will be higher since the part-time apartment right requires a notarial deed.
Sellers are not prohibited from seeking or accepting money from buyers during the cooling-off period. However, they must give some kind of guarantee for repaying the buyer if he decides to cancel the agreement within the cooling-off period. The parties may agree to use an escrow agent; the purchase price minus the (3%) penalty must be kept by the escrow agent until the cooling-off period lapses.
Prospective time-share owners always should consult with a local lawyer first, especially when land development schemes are involved. Also, they should ask specific question, for example, regarding maintenance fees and actual maintenance.
Karel Frielink
Attorney (Lawyer) / Partner
