Sip-
COMMISSION OF THE EUROPEAN COMMUNITIES 
COM(93) 487 final - SYN 419 
Brussels, 7 October 1993 
Î?SS 
Amended proposal for a 
COUNCIL DIRECTIVE 
tWWKSffiSS on the protection of purchasers in contracts relating to the purchase of a right 
to utilize one or several immovable properties on a time-share basis 
(presented by the Commission pursuant to Article 149(3) of the 
EEC Treaty) 
ei^/ï^îSïïSs^s 
X 
EXPLANATORY MEMORANDUM 
INTRODUCTION 
Following the opinions delivered by the European Parliament1 and the Economic and Social 
Committee2 on the proposal for a Council Directive concerning the protection of purchasers 
in contracts relating to the utilisation of immovable property on a time-share basis\ the 
Commission is asked to adopt an amended proposal m that it envisages keeping certain 
features and possibly making certain other changes to its initial proposal The proposal, 
modified in the light of the amendments proposed by the European Parliament, the opinion 
of the Economic and Social Committee and the debates at Council level, is presented below 
in compliance with Article 149(3) of the EEC Treaty 
I. Grounds for the proposal in terms of subsidiarity 
a) What are the objectives of the measure envisaged with regard to the 
Community's obligations? 
R. The creation of a foundation of common rules such as to ensure the legal and 
economic security of the consumer in a domain in which he is the weaker 
party; the elimination of inequalities which currently hinder the smooth 
functioning of the European market and freedom of movement. 
b) Does the envisaged measure concern the exclusive competence of the 
Community or a competence that is shared with the Member States? 
R A shared competence. 
c) What is the Community dimension of the problem0 
R It lies in the transfrontier nature of time-share contracts, because most of the 
holders of time-share rights exercise or will exercise their rights in Member 
States other than the one in which they are resident; it also lies in divergences 
in national legislation, since only four Member States have specific laws - all 
of which are different and incomplete 
PI' 171 252 and IM 174 4 IS 
CMS 2(i(>/'H 
O.I C No 222. 2() S l)2 |> S 
d) What is the most effective solution when the Community's instruments are 
compaied with those of the Member States'' 
R Whatever approach is adopted by each Member State in this domain, there 
will always be an agreement which has to be signed by the parties and it is 
on this agreement that Community action must centre, in this sense it is 
necessary to lay down minimum information which the consumer must have 
prior to signature and a time limit, after signature, during which the 
consumer may withdraw from the contract Given the transfrontier nature of 
time-share contracts, this solution can only be realized at Community level 
e) What is the concrete added value of the envisaged measure and what would 
it cost to do nothing? 
R The measure will make it possible to overcome problems currently facing 
consumers, notably as regards the use of particularly aggressive sales 
techniques; it will also make it possible to control a major industrial sector 
where firms often have their head offices in a tax paradise and enable most 
of the Member States to legislate in this domain, because they are awaiting 
a Community text before going ahead with legislation. 
The measure will also promote the free movement of products, services, 
persons and capital, quite apart from the various procedures involved in 
timesharing. 
The consequence of inaction would be the continuation of the existing 
situation with its attendant frauds and irregularities in a domain of growing 
importance in the tourist sector. 
f) What instruments are at the Community's disposal? 
R A directive or a recommendation 
g) Is a uniform rule necessary or is it enough to adopt a directive setting out 
general objectives to be implemented by the Member States0 
R A directive is the only appropriate instrument 
II Elements of the initial proposal retained in the amended proposal 
The two fundamental features of the initial proposal, i e the vendor's obligation to 
provide an information document whose content constitutes an integral part of the 
contract and the provision establishing a cooling-off period after signature of the 
contract during which the purchaser may withdraw from the contract, are retained 
The criterion as to the language to be used is the same, i e a language which the 
purchaser declares that he knows 
The minimum character of the Directive is also retained as well as the impossibility 
for the purchaser to waive his rights under the Directive or for the vendor to disclaim 
liability 
Finally, as regards the law applicable to the contract, the principle is upheld that the 
purchaser cannot be deprived of the protection accorded under the Directive through 
the choice of the law of a non-Member State, although the wording is simpler than 
in the initial proposal. 
III. The amendments 
1. The title 
The title was changed in order to improve the terminology and to cover more 
exhaustively the characteristics of certain time-share arrangements which are widely 
used in certain Member States. 
2. The recitals 
Recitals 4, 5, 8 and 12 were adapted to the new title. 
Recital 9 was amended, in order to emphasise the fact that the Directive concerns 
only contractual aspects and in no way the law applicable to immovable property, 
which is exclusively the domain of the lex rei sitae. 
The amendments to recitals 12 and 13, and the new recitals 14, 15, 16 and 17, are 
explained together with the corresponding articles. 
The purpose of the new recital 18 is to point out that the entire text respects the 
principle of subsidiarity. 
3. The articles 
Article 2 : Definitions 
The new definition of time-share contracts takes into account an amendment 
proposed by the European Parliament and which was partly accepted by the 
Commission, designed to cover certain characteristics of one of the most widespread 
time-share schemes used in several Member States. 
The definition of immovable property also takes into account the Parliament's desire 
that the Directive should apply not only to existing buildings but also to buildings 
that are to be constructed and which are to be used only for dwelling purposes; hence 
buildings intended for office or other use are outside the scope of the Directive. The 
examples given in the initial proposal have been deleted. 
In the definition of vendor, the term "owner" was replaced by that of "holder" which 
is more appropriate when referring to a right. 
As to the definition of purchaser, although the content is the same, it has been 
modified in order to improve the text from the point of view of technical 
terminology. 
4" 
Article .* Obligations of the vendor 
The amendments are mainly due to the inclusion of certain changes proposed by the 
European Parliament Hence paragraphs (a) and (b) take into account Parliament's 
concern as to the problems which may arise for the purchaser as a result of failure 
to comply with the time limits stipulated by the vendor or non-performance of the 
services agreed by the vendor 
The provisions in the initial proposal concerning building and authorisation rules for 
occupying an immovable property have been removed because these questions are 
more effectively regulated at national level; they are merely referred to incidentally 
in the annex 
The new paragraphs c) and d) incorporate certain parliamentary amendments 
concerning certain obligations whose fulfilment by the vendor must be assured in the 
contract 
Article 4 
As requested by Parliament, the new text deals more directly with the question of the 
charges incumbent on the purchaser, while specifying that the charges for unsold 
rights must be imputed to the vendor. 
Article 5 (and recital 12) 
The amendments to this article have the following major implications. 
a) the information document, already provided for in the initial proposal, must 
be made available to any person who requests it rather than just to any 
potential purchaser. It should be noted that the Annex to the amended 
proposal no longer refers to the information document but to the content of 
the time-share contract; however, this information document must contain 
certain items listed in the Annex. 
b) the information contained in this document is an integral part of the contract, 
this principle was already contained in a recital of the initial proposal, but 
Parliament wanted it to be included in the binding part of the Directive 
Article 5(2) rules out any changes to the information contained in this 
document, unless these changes are agreed between the parties or are the 
results of circumstances independent of the vendor's volition. 
c) all advertising must indicate not only the possibility o\' obtaining the 
information document but also where it can be had from 
Article 6 (and recital 1.Î) Minimum elements of the contract 
As indicated above, the minimum elements which the contract must contain are set 
out in an Annex to the amended proposal 
G 
Article 7 (and new recitals 14 and 16) 
The first paragraph lays down a single cooling-off period as requested by the 
Economic and Social Committee and in the light of the thinking of the delegations 
at the meetings of the Council at minister level; in this sense the Commission has 
opted for a longer deadline than was envisaged in the initial proposals, i.e. 28 days, 
which is also the deadline requested by the Economic and Social Committee The 
Commission took into account the fact that in certain Member States legislation 
and/or practice require conclusion of a preliminary contract which may be legally 
binding (for example, a pre-contract) or certain administrative steps, such as 
engagement of a notary or land registration procedures; in these cases the period 
begins to run from the date of signature of the preliminary contract 
In the second paragraph, which relates to the way in which the right to withdraw is 
exercised, the requirement that a registered letter be sent has been replaced by that 
of a written communication sent in such a manner that documentary evidence of the 
fact can be produced, as requested by Parliament 
As to the third paragraph, this is a compromise amendment between the Commission 
and the Parliament; pursuant to this compromise the vendor may not require advance 
payments before expiry of the cooling-off period; however, if the parties agree, the 
purchaser may make an advance payment before expiry of the deadline if this 
agreement is given expressly and if it does not exceed 5% of the sale price including 
taxes; if the advance contains fees for managing the dossier, i.e. possible notary and 
registration fees, other administrative fees, etc., these may not exceed 1% of the sale 
price, and in any event the vendor must provide sufficient security that he will be 
able to effect reimbursement. 
As to the period within which the vendor must reimburse the purchaser in the event 
of withdrawal, he is granted one month from the date of communication of 
withdrawal. 
Article 8 (and recital 17) 
This is a new article which relates to a subject which was not covered in the initial 
proposal and which was included in the wake of the Council debates; it concerns a 
loan contract linked to a contract for the purchase of a right to utilise one or several 
immovable properties on a time-share basis 
Here the purchaser must be free to repudiate the loan contract if he decides to 
exercise his right of withdrawal as provided for in Article 7 
Article 9 (and recital 15) 
The first part of the new text of this article takes up an amendment by Parliament 
which merges into one paragraph the two paragraphs which this article had in the 
initial proposal; the expression "to be null and void" is replaced bv a different and 
more appropriate expression, so as to enable the Member States to stipulate possible 
penalties 
6> c O-
As to the second paragraph, it replaces Article 9 of the initial proposal, which was 
judged excessively complicated during the debates within the Council, the 
Parliament and the Economic and Social Committee However, the basic principle 
was retained, i.e that the protection accorded by the Directive to the purchaser 
cannot in any way be lessened by the choice of the law of a non-Member State. This 
isalso the wording chosen by the Council in Directive 93/13/EEC concerning unfair 
terms in consumer contracts. 
Article 10, 11, 12 and 13 
The amendments made to these articles are purely formal and do not introduce any 
changes of substance to the initial proposal 
? 
OPINION OP THE: PARLIAMENT 
Amendment 
No 
3 
4 
5 
6 
7 
48 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
51 
21 
22 Initial proposal 
Title 
Recital No 3 
Recital No 12 
Recital No 14 a 
Title 
Article 1 
Article 2.1 
Article 2.2 
Article 2.3 
Article 2.4 
Article 3.1(a) 
Article 3.1(b) 
Article 3.1(c) 
Article 3.1(d) 
Article 3.2 
Article 4 
Article 5 1 
Article 5.2 
Article 6 
Article 7 I 
Article 7 2 
Article 7.3 
58 compromise Article 7.4 Accepted by 
the. Commission 
No 
No 
No 
No 
No 
No 
Partly 
Partly 
No 
No 
j 
Partly 
Partly 
Yes 
Partly 
No 
Yes 
Partly 
No 
No 
No 
Yes 
Partly 
Yes Integrated 
(new numbering) 
Article 2 
Article 2 
Article 3(a) and (b) 
Article 3(c) 
Annex, items e) and f) 
Article 3(d) 
Article 4 
Article 5 2 
Not relevant 
Article 7 2 
Article 7 3 
(2) 
* 
Amendment 
No 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
49 
34 
35 
36 
37 
38 
39 
40 
41 
42 
43 
44 Initial proposal 
Article 7b 
Article 8 
Article 9 
Article 9 
Article 10 
Article 11 
Article 12 
Annex (a) 
Annex (b) 
Annex (c) 
Annex (c) 
Annex(d) 
Annex (e) 
Annex (f) 
Annex (g) 
Annex (h) 
Annex (i) (j) 
Annex (I) 
Annex (m) 
Annex (n) 
Annex(o) 
Annex(p) Acceptedby 
the Commission 
No 
Yes 
No 
Yes 
No 
No 
No 
Partly 
Yes 
Yes 
No 
Yes 
Yes 
Yes 
Yes 
Yes 
Yes 
Partly 
Yes 
No 
Yes 
Yes Integrated 
(new numbering) 
Article 9 
Article 9.2 
Amendments concerning 
the Annex are irrelevant 
because the new Annex no 
longer refers to the 
information document but 
to the time-share contract 
INITIAL PROPOSAI. AMENDED PROPOSAL 
Proposal for a Council Directive concerning 
the protection of purchasers in contracts 
relating to the utilisation of immovable 
property on a time-share basis Proposal for a Council Directive concerning 
the protection of purchasers in contracts 
relating to the purchase of a right to utilise 
one or several immovable properties on a 
time-share basis 
THE COUNCIL OF THE EUROPEAN 
COMMUNITIES 
Having regard to the Treaty establishing the 
European Economic Community, and more 
particularly Article 100a thereof, 
Having regard to the proposal from the 
Commission, \ 
In cooperation with the Economic 
Parliament, 
Having regard to the opinion of the 
Economic and Social Committee, 
1. Whereas one of the main aims of the 
Community is to complete the 
internal market by 31 December 
1992 at the latest; whereas it is 
important to adopt measures to 
ensure that the internal market is 
established progressively; whereas 
the internal market comprises an 
area without internal frontiers in 
which goods, persons, services and 
capital can move freely; Unchanged 
Whereas one of the main aims of the 
Community is to complete the 
internal market; whereas it is 
important to adopt measures to 
ensure that the internal market is 
established progressively; whereas 
the internal market comprises an 
area without internal frontiers in 
which goods, persons, services and 
capital can move freely. 
AO 
Whereas the European Parliament, 
in its resolution of 13 October 1988 
on the need to fill the legal gap in 
the time-share market'0, called on 
the Commission to submit a 
proposal for a directive to harmonise 
national legislation on time-shaire 
property ownership, whereas, in its 
resolution of 11 June 1991 on a 
Community tourism policy(2), the 
European Parliament took the view 
that the Commission should present 
a general time-share directive as a 
matter of urgency; 
Whereas, in the Community Action 
Plan for Tourism(3), the 
Commission's guidelines with a 
view to improving protection for 
tourists as consumers include 
'drafting a proposal regarding cross-
border property transactions (time­
sharing)'; 2. Unchanged 
Unchanged 
Whereas the time-share market is 
very largely of a transfrontier nature 
by the reason of the geographical 
location of supply and demand in 
most cases, and hence has an impact 
on the free movement of persons, 
services and capital; Whereas the purchase of a right to 
utilise one or several immovable 
properties on a time-share basis is 
very largely of a transfrontier nature 
by reason of the geographical 
location of supply and demand in 
most cases, and hence has an impact 
on the free movement of persons, 
services and capital; 
Whereas, although most of the 
Member States have as yet no 
specific legislation on time-share 
contracts, others do, taking the view 
that the provisions of ordinary law 
applicable to this type of transaction 
have failed to generate the requisite 
legal clarity or the appropriate level 
of protection for consumers; 
(1) OJNoC290, 14.11.1988, p. 148 
(2) Resolution A3-155/91, point 91 (Document PE 152.802, p. 54). 
(3) COM(91)97final,p.20 Whereas, although most of the 
Member States have as yet no 
specific legislation on the purchase 
of a right to utilise one or several 
immovable properties on a time-
share basis, others do, taking the 
view that the provisions of ordinary 
law applicable to this type of 
transaction have failed to generate 
the requisite legal clarity or the 
appropriate level of protection for 
consumers; 
yV-A 
Whereas the application of the rules 
of ordinary law in some Member 
States and of specific legislation, 
albeit with different rules, in others 
creates disparities which might 
hamper the orderly development of 
this sector of economic activity; 
whereas this situation is thus 
prejudicial to the proper functioning 
of the internal market. Unchanged 
Whereas under the circumstances 7. 
and with a view to ensuring a high 
level of protection for consumers, it 
is essential to make provisions for a 
basic set of specific rules for this 
type of transaction, applicable 
throughout the Community; 
Whereas the legal concepts applied 8. 
under national law to time-share 
arrangements vary considerably 
from one Member State to another; 
:£# ;^I^Whereasit is nonetheless sufficient 
to harmonise the rules concerning 
time-share contractual transactions, 
the law applicable in each case 
deriving exclusively from the lex rei 
sitae: Unchanged 
10. Whereas, with a view to establishing 
effective standards for protecting 
purchasers in this filed, it is 
necessary to stipulate minimum 
obligations which vendors must 
comply with vis-à-vis purchasers; Whereas the legal concepts applied 
under national law to the purchase 
of a right to utilise one or several 
immovable properties on a time-
share basis vary considerably from 
one Member State to another; 
Whereas it is nonetheless sufficient 
to harmonise the rules concerning 
the contractual aspects of 
transactions relating to the purchase 
of a right to utilise one or several 
immovable properties on a time-
share basis, the law applicable to 
each immovable property deriving 
exclusively from the lex rei sitae, 
10. Unchanged 
11. Whereas nothing must be done to 
affect the freedom of Member States 
to establish guarantees under their 
own legislation in respect of the 
Vendor's obligations. 11. Whereas nothing must be done to 
affect the freedom of Member States 
to establish measures to ensure that 
the vendor fulfils his obligations; 
A% 
12. Whereas it is necessary to avoid any 
misleading or incomplete details in 
information concerned specifically 
with one sale of time-share rights, 
whereas such information must be 
supplemented by a document which 
the purchaser must formally 
acknowledge receipt of at the time 
the contract is signed, whereas this 
supplementary document must be 
drawn up in a language which the 
purchaser states he knows; whereas 
the items of information contained 
therein must constitute an integral 
part of the time-share contract; 12 Whereas it is necessary to avoid any 
misleading or incomplete details in 
information concerned specifically 
with the sale of rights to utilise one 
or several immovable properties on 
a time-share basis; where as such 
information must be supplemented 
by a document which must be made 
available to any person who requests 
it; whereas the in formation 
contained therein must constitute 
part of the contract for the purchase 
of a right to utilise one or several 
immovable properties on a time-
share basis; 
13. Whereas, to give the purchaser the 
chance to realise what obligations 
and rights he has under the contract 
he has to be given the right to 
withdrawal for a period which takes 
account of the fact that the property 
is often situated in a State and is 
subject to legislation which are 
different to those of the purchaser; 
whereas it is necessary to make 
provision for the purchaser to be 
informed by writing of this cooling-
off period; 13 Whereas, to give the purchaser the 
chance to realise what obligations 
and rights he has under the contract, 
he has to be given a period during 
which he may cancel the contract 
which takes account of the fact that 
the property is often situated in a 
State and is subject to legislation 
which are different to those of the 
purchaser; 
14. Whereas, in order to give the 
purchaser a high level of protection 
and in view of the specific 
characteristics of systems for 
utilising immovable properties on a 
time-share basis, the contract for the 
purchase of a right to utilise one or 
several immovable properties on a 
time-share basis should contain 
certain minimal elements; whereas 
this contract should be drawn up in 
a language which the purchaser 
declares he knows. 
14 Whereas the protection afforded to 
the purchaser must be supplemented 
in terms of private international law, 
given the time-share contracts are 
very often transfrontier in nature; I 5 Whereas there is a risk, in certain 
cases, that the consumer may be 
deprived of the protection accorded 
by. this Directive by specifying the 
1 aw of a non-Member State as the 
law applicable to the .contract, 
whereas, consequently. ri _is 
necessary. to include m_. this 
•**> 
I s Whereas nothing must be done to 
prevent Member States from 
maintaining or adopting provisions 
which give the purchaser greater 
protection in connection with time-
share contracts, Directive provisions designed to 
avoid this risk, 
!(> Whereas_the requirement, on the 
Part;_pf the yendor, that advance 
payments be made before expiry of 
the cooling-off period may 
constitute^ _ a risk of financial 
insecurity forthe purchaser, whereas 
it is necessary to eliminate this risk 
by prohibiting advance payments 
before expiry of this period; whereas 
this prohibition does not prevent the 
parties from agreeing on the 
payment of an advance before 
expiry of the period; whereas it is 
necessary, in order to secure the 
maximum amount of financial 
security for the purchaser, to limit 
such advances and to ensure 
reimbursement of the purchaser in 
the event of cancellation of the 
contract; 
17. Whereas, in the event of 
cancellation of a contract for the 
purchase of a right to utilise one or 
several immovable properties on a 
time-share basis whose price is 
entirely or partly covered by a loan 
granted to the purchaser, the 
purchaser must also be free to cancel 
this loan contract; 
18 Whereas, finally, the aim of the 
present Directive is the creation of a 
set of commun rules assuring the 
legal and economic security of 
purchasers in an area where they are 
i nasi tuation of inferiority compared 
tQ other interested parties; whereas 
the.pxesen^Djreçjiy_e wi 1J allow the 
bal an ce to be redressed between the 
interested parties, necessary for the 
smonth, functioning of the market; 
whereas the differences in national 
1 egi si at;ioni the tern tori aj_ Ji rnjis^ of 
this legislation., and the evidently 
transfrontier nature of the market 
mean that a high level of protection 
l*°.r.purchasers, is only possible at 
Community. JeyeL gjven the joint 
^ 
competence of the Community with 
the Member States in this area, the 
protection of purchasers. m___the 
conditions laid down by the present 
directive, seems necessary at 
Community level in order to support 
and supplement the policy followed 
by the Member States at national 
level; whereas the appropriate 
instrument to attain the objective is 
a Directive; whereas th ^provisions 
of this present Directive are hence 
coform with the principle of 
subsidiarity. 
AS 
INITIAL PROPOSAL AMENDED PROPOSAL 
HAS ADOPTED THIS DIRECTIVE MAS ADOPTED THIS DIRECTIVE: 
Article I Article I 
The purpose of this Directive is to 
approximate the laws, regulations and 
administrative provisions of the Member 
States in respect of contracts relating to the 
utilisation of immovable property on a time-
share basis. 
Article 2 The purpose of this Directive is to 
approximate the laws, regulations and 
administrative provisions of the Member 
States in respect of contracts relating to the 
purchase of a right to utilise one or several 
immovable properties on a time-share basis. 
Article 2 
For the purposes of this Directive: 
'contract relating to the utilisation of 
immovable property on a time-share 
basis', hereinafter referred to as 
'time-share contract', means any 
contract by which a vendor transfers 
or undertakes to transfer to a 
purchaser, on payment of a certain 
price, a real property right or amy 
other right relating to the utilisation 
of immovable property at a certain 
time of the year, which may not be 
less than one week, covering a 
minimum of three years, 
"immovable property" means any 
building or part of a building to 
which the time-share contract 
relates, such as a house, flat 
bungalow, studio flat, etc., For the purposes of this Directive: 
"contract relating to the purchase of 
a right to utilise one or several 
immovable properties on a time-
share basis", hereinafter referred to 
as "time-share contract", means any 
contract by which a vendor transfers 
or undertakes to transfer to a 
purchaser, on payment of a certain 
price, a right having either the 
characteristics of an obligation or 
the characteristics of a real right, and 
accorded for a minimum period of 
three years, to utilise one or several 
immovable properties during a 
determinable time of the year; 
"immovable property" means any 
building or part of a building already 
built or to be built, for use as a 
dwelling, to which the right which is 
subject of the time-share contract 
relates; 
"vendor" means any natural or legal 
person who, in transactions covered 
by this Directive and in his 
professional capacity, transfers or 
undertakes to transfer to a purchaser 
a real property right or any other 
right relating to the utilisation of 
immovable property, where he is 
himself the owner of the said 
property to which the right refers or 
is authorised by the owner to carry 
out such transaction, "vendor" means any natural or legal 
person who, in transactions covered 
by this Directive and in his 
professional capacity, transfers or 
undertakes to transfer the_jight 
which is subject of the time:share 
contract, where he himself is holder 
of this right or has been authorised 
by the holder to proceed with this 
transfer; 
AG 
"purchaser" means any natural 
person who, in transactions covered 
by this Directive, acts as a 
consumer, i.e. for the purposes 
which may be regarded as being 
outside his professional capacity "purchaser" means any natural 
person acting in transactions 
covered by this Directive for 
purposes which may be regarded as 
being outside his professional 
capacity to whom the_right_which is 
subject of the time-share contract is 
transferred. 
Article 3 Article 3 
Member States shall make provision to 
ensure that, in the time-share contract, the 
vendor guarantees, more particularly: 
a) that the immovable property, and 
any connected facilities, has been 
built or will be built according to the 
state of the art and under such 
conditions as to obtain from the 
authorities of the country in which 
the property is or will be situated the 
necessary authorisation, according 
to the national law, so that he can 
effectively occupy the property; 
b) the transfer to the purchaser, on 
payment of the price stipulated in 
the time-share contract, of the real 
right or any other right of use in 
respect of the property, exclusive of 
all charges or subject only to such 
charges as are stipulated in the time-
share contract; 
c) where appropriate, the purchaser's 
right to use, in addition to such 
common services as lighting, 
cleaning, refuse collection, etc. 
special facilities such as swimming 
pools, tennis courts, golf courses, 
saunas, etc exciting at the time of 
signature of the time-share contract 
or in the future, subject to the 
conditions stipulated in the time-
share contract or otherwise provided 
for by the vendor. Member States shall make provision in their 
legislation to ensure that, in the time-share 
contract, the vendor shall ensure, more 
particularly: 
a) that, if the immovable property is 
still to be built, the work will be 
performed within the envisaged time 
limits; 
b) that adequate guarantees will be 
provided to compensate for possible 
loss to the purchaser resulting from 
delay, defective performance or non­
performance of the services 
incumbent on the vendor; 
c) that the transfer to the purchaser, on 
payment of the price stipulated, of 
the right which is subject of the 
time-share contract shall take place 
simultaneously and shall be 
exclusive of all charges, with the 
exception of those enumerated in the 
time-share contract, conferring on 
him the right to do as he wishes with 
the properties or shares concerned 
Deleted 
Al 
d) the purchaser's right to be involved d) 
in the process of making any 
decisions concerning the 
administration of the time-share 
scheme and the management and 
maintenance of the property to 
which the time-share arrangement 
relates. The purchaser may .delegate 
this right provided this is done in a 
separate document and subsequent 
to signature of the time-share 
contract, such delegation of powers 
may be revoked at any time 
2. Member States shall make provision deleted 
in their legislation for appropriate 
measures to ensure that the vendor 
gives adequate guarantees 
concerning, where appropriate: 
correct completion of the property, deleted where relevant, the purchaser's right 
to be involved i.a.An_.aj)riropnate 
manner in the process of making any 
decisions concerning the 
management and maintenance of the 
immovable property. The purchaser 
may delegate this right of 
participation provided this is done in 
a separate document and subsequent 
to signature of the time-share 
contract; such delegation of powers 
may be revoked at any time. 
reimbursement of any advance 
payment, in the event of non-
completion of the property or in 
exercise of the right to withdrawal 
within the meaning of the Article 7, 
without prejudice to the terms of 
Article 7(4). deleted 
Article 4 Article 4 
The Member States shall make provision 
for: 
1 ) measures to establish the purchaser's 
rights and obligations in respect of 
the management and maintenance of 
the property to which the time-share 
arrangement relates, such measures 
shall be in conformity with point 
(m) of the Annex; "Member States shall make provision in 
their legislation for the bases for calculating 
the breakdown of common and occupation-
linked charges between the purchasers, 
corresponding to their share of the right to 
U.t'h.se the ^property; where relevant, the 
share of each category of charges to which 
each purchaser is liable shall be fixed 
separately. Charges for unsold rights of 
utilisation may not be apportioned down 
among the purchasers who have already 
sjJi.!.!ed an undertaking but must be imputed 
to the vendor 
2) the bases for the breakdown of 
common and occupation-linked 
charges, in annual terms, in which 
the purchaser is required to 
participate, such bases shall lay 
down clearly and unequivocally, and 
in conformity with the terms of 
point (j) of the Annex, the share of 
each category of charges to which 
each purchaser is liable, in the light 
of the situation and category of the 
property to which the time-share 
arrangement relates, and the period 
and duration of the time-share right. vt8 
Article 5 Article 5 
Member States shall make provision " 1 
for measures to ensure that the 
vendor is required to make available 
to any potential purchaser a 
document providing information in 
an unequivocal, detailed and 
complete form on at least the items 
set out in the Annex. 
The document shall be in a language 
which the purchaser states he 
knows. Member States shall make provision 
in their legislation for measures to 
ensure that the vendor is required to 
make available an information 
document to any person who 
requests one. This document, in 
addition to the general description of 
the property to which the right 
which is subject of the time-share 
contract relates, must at least contain 
concise and precise information on 
the items indicated in points a), c). 
d). f). gV and k) of the Annex as 
well as particulars on how to obtain 
additional information. 
2. Member States shall provide in their 
legislation that the information 
contained in the document referred 
to in paragraph 1 is an integral part 
of the time-share contact; 
Except by express agreement 
between the parties, the only 
changes to this information which 
are admissible are those which relate 
to circumstances independent of the 
vendor's volition 
Changes made to this information 
must be communicated to the 
purchaser before conclusion of the 
contract. The _.contract must 
expressly mention these changes. 
Any other form of advertising shall 
indicate the possibility of obtaining 
the document Any _ advertising relating to jhe 
immovable property in question 
shall indicate the possibility of 
obtaining the document referred to 
in paragraphe]. as well as where it 
can be had from. 
^9 
Article 6 Article 6 
Member States shall make provision to 
ensure that the time-share contact, which 
must be in writing, contains at least the 
following items: 
a) a detailed and unequivocal 
description of the property in respect 
of which the time-share right is 
transferred to the purchaser. This 
description must be in conformity 
with the information contained in 
point (a) of the Annex; 
b) the precise type of time-share right 
which is being transferred to the 
purchaser. This type of right must 
feature among those referred to in, 
point (d) of the Annex; 
c) the period and date, in words, within 
and from which the purchaser may 
exercise his time-share right, such 
information being in conformity 
with the information contained in 
point (f) of the Annex, 
d) express reference to the other items 
indicated in the Annex; "Member States shall make 
provision to ensure that the time-
share contract, which must be in 
writing, contains at least the items 
mentioned in the annex. 
The document shall be in a language 
which the purchaser states he 
knows. 
e) the date, in words, of signature of 
the contract; 
f) the purchaser's declaration 
indicating that he has received and 
understood the document referred to 
in the first subparagraph of 
Article 5(1) in accordance with the 
second paragraph thereof. 
Article 7 Article 7 
Member States shall make provision for: Member States shall provide: _jn their 
legislation that 
the obligation on llw vmini In 
inform the purchaser, in writing, at 
the time of signature of contract, 
that the contract will take effect 
unless the purchaser withdraws 
within a period of: I the conduit shall become definitive 
provided the. purchaser, has not 
exercised his. right.„of__withdrawaI 
with a period of at least 28 calendar 
days from the date of signature of 
the contract or, in..ilie_ev.e_nt._of 
at least 14 calendar days 
from the date of signature of 
contract, or conclusion of ai preliminary but 
legal\y binding contract, from the 
date of signature of this contract; 
at least 28 calendar days 
from the date of signature of 
contract where the time-
share right can be exercised 
in a country other than 
where the purchaser has his 
normal residence, 
2. the information referred to in point 1 
to be contained in the contact in an 
unequivocal and clearly legible form 
and at least in the same point as the 
rest of the contract, immediately 
preceding the signatures of the 
parties to the contract; 
3. the right of withdrawal provided for 
in point 1 to be exercised by the 
purchaser by notifying the person 
whose name and address figure in 
the contract for the purpose . As 
regards compliance with the 
deadline, it is sufficient for 
notification to be sent, by registered 
letter, before expiry of the relevant 
deadline; 
measures designed to: 
a) lay down the conditions in 
which, where the purchaser 
exercises the right of 
withdrawal provided for in 
point 1, any sums which 
may be reimbursable are 
calculated so as to ensure 
that reimbursement does not 
entail any unjustified 
enrichment for either of the 
parties concerned; 
b) establish the deadline for 
reimbursement 2. With a view to exercising this right 
of withdrawal, the purchaser shall 
address a written communication to 
the person whose name and address 
are indicated in the contract for this 
purpose. As regards compliance 
with the deadline, it is sufficient for 
the communication to be sent in 
such a manner that documentary 
evidence of the fact can be produced 
before expiry of the deadline; 
3. The vendor may not require advance 
payments from the purchaser before 
expiry of the deadline mentioned în 
paragraph 1. However, the parties 
may agree on payment of an 
advance i_.__.this agreement is given 
cxpjessjy _md_if the advance does 
not exceed 5% oi^ the value of the 
•su!_Çvincluding taxes, to the extent 
th_at_ _such an advance contain s 
expenses for managing the dossier, 
such expenses may not exceed a 
maximum of 1% of the sale price 
and must be mentioned sepaLately in 
the contract A s to a possible 
advance payment, the vendor must 
*1 
provide adequate guarantees forjjs 
reimbursement. If the purchaser^n 
due form and within jhe agreed 
deadline, exercises his;.._ng!lL_p\ 
withdrawal, the advance payment, 
where relevant less the fees for 
managing the dossier, shall be 
reimbursed within a month at the 
latest, starting from the date of 
communication of withdrawal-
Article 8 
"Member States shall provide in their 
legislation that: 
a) if the price is entirely or partly 
covered by a loan granted by the 
vendor or. 
b) if the price is entirely or partly 
covered by a loan accorded to the 
purchaser bv a third party on the 
basis of an agreement concluded 
between the third party and the 
vendor, the purchaser shall be free to 
withdraw from the loan contract if 
he chooses to exercise his right of 
withdrawal providedforin Article 7; 
in such cases the purchaser must 
cancel the loan contract before 
expiry of the deadline referred to in 
paragraph 1 of that article. The 
procedures for exercising the right to 
cancel the loan contract shall be 
determined by the Member States, 
Article 8 Article 9 
Member States shall make provision for: 
1 any clause under which the 
purchaser renounces his right to 
benefits under this Directive to be 
null and void; 
2 any clause under which the vendor 
is exonerated from liability arising 
from this Directive to be null and 
void Member States shall provide in their 
legislation that clauses under which 
the purchaser renounces his right to 
benefits under this Directive or 
under which the vendor disclaims 
liabilities arising from this Directive 
shall not bind the purchaser under 
the conditions laid down by then 
national laws 
Member States shall take the 
measures neçessary_ to ensure that 
the purchaser shall not be depnved 
Member States shall make provision, 
notwithstanding a choice of the law by the 
parties to the contract or the application of 
the objective criteria of international private 
law for determining which law shall apply, 
for the purchaser not be deprived of the 
protection given him by this Directive; 
a) if the property to which the time-
share in a Member State and 
i) if conclusion of the contract 
was preceded in that 
Member State by a specially 
drafted proposal or by 
advertising, and if the 
purchaser has completed in 
that same Member State the 
necessary legal steps for 
completion of the contract; 
or 
ii) if the vendor or his 
representative received the 
order from the purchaser in 
that Member State; 
or 
iii) if the purchaser went from 
that Member State to a 
foreign country and signed 
the ti me-share contract th ere, 
on condition that the journey 
was organised by the vendor 
for the purpose of inducing 
the purchaser to conclude 
such a contract. SIX 
of the protection accorded by this 
Diieçtiye thrpugh choice of the law 
of a non-Member State as the law 
applicable to the contract-
Article 9 deleted 
âb 
Article 10 Article 10 
The Member States shall make provision in 
their legislation for the consequences of 
non-compliance with the provisions in this 
Directive. The Member States shall make provision in 
their legislation for the consequences of 
non-observance of the provisions in this 
Directive. 
Article 11 Article 11 
This Directive shall not prevent Member 
States from adopting or maintaining 
provisions which are more favourable with 
regard to protecting the interests of the 
purchaser in the field in question, without 
prejudice to their obligations under the 
Treaty. 
Article 12 Member States may adopt or maintain, in 
the domain covered by this Directive, 
stricter provisions which are compatible 
with the Treaty, in order to ensure a higher 
level of protection for the purchaser-
Article 12 
Members States shall bring into force the 
law, regulations and administrative 
provisions necessary to comply with this 
Directive by 31 December 1994. They shall 
immediately inform the Commission 
thereof. When Member States adopt these 
provisions, these shall contain a reference to 
this Directive or shall be accompanied by 
such reference at the time of their official 
publication. The procedure for such 
reference shall be adopted by the Member 
States. Member States shall bring into force 
the laws, regulations and 
administrative provisions necessary 
to comply with this Directive by 
31 December 1995. They shall 
immediately inform the Commission 
thereof. 
When Member States adopt these 
provisions, these shall contain a 
reference to this Directive or shall 
be accompanied by such reference at 
the time of their official publication. 
The procedure for such reference 
shall be adopted by the Member 
States. 
Article 13 Member States shall communicate 
to the Commission the text of the 
fundamental provisions of internal 
law which they adopt in the domain 
covered by this Directive. 
Article 13 
This Directive is addressed to the Member 
States This Directive is addressed to the Member 
States 
^</ 
ANNI'X 
IMTIAI^PROPOSAL 
Minimum list of items to be included in the 
document referred to in Ailicles 5(1) and 
6(d) AMKNDKD PROPOSAL 
Minimum list of items to be included in the 
contract referred to in Article 6 
a) A description of the immovable a) 
property to which the time-share 
rights relate or will relate, giving 
details of geographical situation, 
whether the property has already 
been built, is being built or is 
planned and stating that it has been 
built or will be built according to the 
state of the art and so as to obtain 
from the authorities of the country in 
which the property is or will be 
situated the necessary authorisation, 
under national legislation, so that the 
property in question can effectively 
be occupied. 
b) The nature of the vendor's title to the b) 
land on which the immovable 
property is or will be located; any 
charges to which the property is 
subject (e.g. mortgages easements); 
whether the vendor has been granted 
the requisite permits (e.g. building, 
connection to telephone, electricity, 
water, gas, TV services, etc.). 
c) The precise legal structure of the c) 
time-share and its duration. 
d) An indication of the time-share d) 
rights offered by the vendor and 
their duration; the number of 
properties constructed, under 
construction or planned; the 
furnishings and fittings associated 
with each property Identity and place of residence of 
the parties, with a precise indication 
of the legal status of the vendor at 
the time of conclusion of the 
contract, as well as. where relevant, 
the identity and place of residence of 
the owner of the immovable 
property. 
The precise nature of the right which 
is subject of the time-share contract 
When the property to which the 
time-share right relates is a specific 
one, a precise description of the 
property and its location. 
Whenever the immovable property 
is under constructjon 
1 ) the_^iate of completion of 
the construction 
2) estimated date of completion 
ofjhe works, 
3) if it is a specific immovable 
property, the. nuniber of the 
building permitjand the full 
name, and address of the 
àHS. 
authorities or authorities 
responsible, 
4) the state of completion of 
common services rendering 
the immovable property 
operational (gas, electricity, 
water, telephone). 
5) the guarantees referred to in 
Article 3(b); 
e) 
f) 
g) The total number of time-share 
rights in each property. 
A clear and precise description of 
the fixed and variable periods of 
occupation, stating the arrangements 
for determining such periods. 
The date on which the purchaser 
may occupy the property. e) the common services (lighting, 
water, maintenance, waste removal) 
to which the purchaser has or will 
have access and the applicable 
conditions; 
f) sport and leisure facilities to which 
the purchaser has or will have 
access, and, where relevant, the 
applicable conditions; 
g) a precise indication of the period or 
periods during which the right which 
is subject of the time-share contract 
may be exercised and, where 
relevant, the duration of the scheme 
that has been established; the date 
from which the purchaser may 
exercise the right which is subject of 
the time-share contract; 
h) 
i) Common facilities (e.g. swimming 
pool, sauna, tennis courts, golf 
courses, etc.) and existing and future 
services to which the purchaser is 
entitled, and the date on which such 
facilities and services may be used 
by the purchaser. 
The total cost for the purchaser, 
laying down clearly and 
unequivocally the cost of the various 
time-share rights over the various 
periods of the year, where a 
leasehold arrangement is involved, 
the rent must be specified. h) the total price which the purchaser 
must pay to exercise the right which 
is subject of the time-share contract; 
this shall include the sum which 
must be paid by the purchaser for 
utilisation of common services and 
facilities, the basis for calculating 
the charges linked to occupation of 
the immovable property by the 
purchaser, mandatory legal charges 
(taxes, dues) and additional 
administrative charges 
(management, upkeep, repairs); 
i) a clause mentioning that the 
purchase shall not involve any 
outgoing, charge or obligation other 
than those stipulated in the contract; 
.&, 
The annual cost which the purchaser j ) 
is expected to assume for use of the 
common facilities and services, the 
annual amount of charges related to 
occupation of the property by the 
purchaser; the annual statutory and 
mandatory charges (e.g. taxes, fees, 
etc.) and the annual administrative 
overheads (e.g. management, 
upkeep, repairs, etc ) and their 
expected development, any costs 
payable by the purchaser for special 
services on request whether or not the purchaser jnay 
participate, in an exchange project 
and/or resale of the rightwhich is 
subject ofthe time-share contract, as 
well as possibIe costs if the vendor 
should organjse a system of 
exchange and/or resale; where 
relevant, a statement to the effect 
that sale ofthe right which is subject 
ofthe time-share contract cannot be 
assured at a fixed price or within a 
fixed period; 
k) 
1) The guarantee referred 
Article 3 to in 
Clear and unequivocal details of 
conditions, limits and cost of time-
share exchange and resale services, 
where these services exist; if thy do 
not exist, this must be indicated. At 
any event, there must be a statement 
to the effect that the sale of time-
share rights cannot be assured at a 
fixed price of within a fixed period. k) information on the right to withdraw 
from the contract, precise indiçati.on 
of the nature and quantity of fees 
which will not be reimbursed to the 
purchaser pursuant to Article 7(3), 
should he exercise his right to 
withdraw; where relevant, 
information on the possibility of 
withdrawing from the loan contract 
linked to the time-share contract in 
the event of withdrawal from the 
latter; 
1) date and place ofthe signature of the 
contract by both of the parties. 
m) Measures which have been or will 
be taken in respect of the 
manage m e n t, upkeep and 
maintenance of the property, and 
any measures adopted or to be 
adopted relating to the purchaser's 
participation in the administration 
and management 
(n) The period within which the 
purchaser can exercise his right to 
witluliaw from the contract, as 
referred to in Article 7, the 
ariangements for so doing and the 
effect of withdrawn!!' 
§Cf 
Revised impact assessment form 
IMPACT OF THE PROPOSAL ON BUSINESSES WITH SPECIAL REFERENCE TO SMALL 
AND MEDIUM-SIZED ENTERPRISES. 
Title: Amended proposal for a Council Directive on the 
protection of purchasers in contracts relating to the 
purchase of a right to utilise one or several immovable 
properties on a time-share basis. 
Reference No: C0M(92) 220 final - SYN 419. 
1 Taking account of the principle of subsidiarity, why is 
Community legislation necessary in this area and what are its 
main aims? 
Contracts relating to the purchase of a right to utilise one 
or several immovable properties on a time-share basis are of a 
distinctly transfrontier nature; the great majority of 
Community citizens who hold time-share rights have their 
timeshares in a Member State other than their country of 
residence. Moreover, only four of the Member States have 
specific - and highly divergent•- legislation on timeshares. 
Community purchasers can only be protected by Community 
legislation. 
The main aim of the proposal is to create a foundation of 
common rules so as to give the consumer legal and economic 
security in a domain in which he is weaker than the other 
parties concerned. 
The impact on business 
2 Who will be affected by the proposal? 
Companies selling time-share rights. This is a relatively new 
sector which is burgeoning throughout the Community, and 
mainly consists of small and medium-sized enterprises, many of 
which are immune from any supervision in the Member States 
where they sell their services because their head offices are 
often located in tax havens; these enterprises offer their 
services in premises located at seaside and mountain tourist 
resorts (such as ski resorts, the Mediterranean coast, 
Atlantic islands). 
3 What measures will businesses have to take to comply with the 
proposal? 
Before signing the contract they will have to provide the 
purchaser with more precise and detailed information on the 
rights they are offering, and they will also have to give 
purchasers a cooling-off period during which they may withdraw 
from the contract without incurring a penalty. This cooling-
ZÇ 
off period, which in the amended proposal has been extended to 
28 days, may add to the costs of firms in the sector; firms 
will also have to take into account that, during the cooling-
off period, advance payments may not be requested unless the 
purchasers concur and that such payments may not exceed 5% of 
the sale pr ice. 
What economic effects is the proposal likely to have? 
on employment 
on investment and the creation of new businesses 
on the competitive position of businesses 
The instrument should have no particular effect on employment, 
while the creation of new businesses will be eased given that 
increased market transparency will have beneficial effects on 
competition. However, there may be a negative effect on cash 
flow, mainly because of the extension of the cooling-off 
period and the restrictions on advance payments. 
Does the proposal contain measures to take account of the 
specific situation of small and medium-sized firms? 
Firms, whatever their size, have nothing to fear from the 
proposal provided they are serious and honest. The aim is to 
target bogus firms which conceal their activities from the 
authorities and practice what amounts to unfair competition to 
the detriment of the honest firms in the sector; hence the 
objective is to put at end where possible to certain 
commercial practices which may Jeopardise the smooth 
functioning of the market. 
Consultation 
List of organisations which have been consulted about the 
proposal and outline of their main views. 
European Timeshare Federation. The ETF is for the proposal, 
although it would have preferred a shorter cooling-off period. 
This federation of timeshare firms hopes that the Directive 
will shake out the market by leading to the disappearance of 
firms which use unfair commercial practices (under the cover 
of anonymity) and which are responsible for the bad reputation 
the sector has at present. 
Consumers' Consultative Committee: very much in favour. 
Standing Committee of Notaries in the EC: for the proposal 
because it will increase market transparency and improve the 
protection of purchasers. 
ISSN 0254-1475 
COM(93) 487 final 
DOCUMENTS 
EN 10 
Catalogue number : CB-CO-93-520-EN-C 
ISBN 92-77-59724-0 
Office for Official Publications of the European Communities 
L-2985 Luxembourg