As dis­cussed in a prior post, the UK's new Time­share, Hol­i­day Prod­ucts, Re­sale and Ex­change Con­tracts Reg­u­la­tions 2010 (the “Reg­u­la­tions”) will come into ef­fect on Feb­ru­ary 23, 2011. The Reg­u­la­tions will im­ple­ment the EU Time­share Di­rec­tive into UK law, re­place en­tirely the cur­rent regime in the UK by re­peal­ing the Time­share Act 1992 and re­vok­ing the Time­share Reg­u­la­tions 1997, and add cer­tain ad­di­tional con­sumer pro­tec­tions.

For those in­volved in frac­tional and time­share de­vel­op­ments sub­ject to UK law, some key el­e­ments of the Reg­u­la­tions in­clude:

  • re­quir­ing im­por­tant key in­for­ma­tion (i.e. an In­for­ma­tion State­ment), in a stan­dard­ized form, to be pro­vided in ad­vance of a con­tract be­ing agreed
  • set­ting forth pro­vi­sions for reg­u­la­tion of the form and con­tent of the pur­chase con­tract (in­clud­ing no de­posits, stan­dard can­cel­la­tion lan­guage and “no in­vest­ment in­tent” lan­guage)
  • man­dat­ing the use of an In­for­ma­tion State­ment re­lated to ex­change and re­sale trans­ac­tions
  • pro­vid­ing con­sumers with a right to with­draw from a reg­u­lated con­tract within a stan­dard 14 day can­cel­la­tion pe­riod, and the ad­di­tional right to with­draw from a long-term hol­i­day prod­uct con­tract when pay­ment of the sec­ond and sub­se­quent in­stall­ments be­come due
  • ban­ning any pay­ment in ad­vance of the com­ple­tion of the with­drawal pe­riod of the reg­u­lated con­tract
  • set­ting out pro­vi­sions for pay­ment for a long-term hol­i­day prod­uct con­tract by way of yearly in­stall­ments
  • pro­vid­ing for the au­to­matic can­cel­la­tion of a re­lated credit agree­ment and other an­cil­lary con­tracts when the reg­u­lated pur­chase con­tract is can­celled
  • in­clud­ing sanc­tions and, where ap­pro­pri­ate, crim­i­nal of­fences for non-com­pli­ance with the Reg­u­la­tions (notwith­stand­ing that the Reg­u­la­tions also pro­vide for con­trac­tual reme­dies for con­sumers)

The fore­go­ing is just a brief in­tro­duc­tion to the new UK Reg­u­la­tions that we wanted to bring to your at­ten­tion. More in­for­ma­tion on the Reg­u­la­tions can be found by re­view­ing the sum­mary pub­lished by the UK De­part­ment for Busi­ness In­no­va­tion & Skills.