Over
the past few years Silverpoint Vacations SL (“Silverpoint”) sold many
apartments in this famous complex, but many new owners are now disappointed
after seeing that their investment is not turning out the way they had
expected. Initially the apartments were presented with a draft contract that
was very appealing but when they came to sign the contract to get possession of
their Beverly
Hills Tenerife apartment, they were presented with a much worse version of
rental contract.
With
the fear of paying community fees and utility bills without a corresponding
income, many investors simply signed the new rental agreement without
acknowledging its future implications. Excel Hotels & Resorts SL “Excel”
claim to be unrelated from Silverpoint Vacations that sold the apartments in
the first place. But the company’s administrator is none other than Diana Aitchison, who was the previous
Chief Operating Officer of
Silverpoint.
In
addition to this, a clause in the rental contract gives voting rights for that
apartments to Excel. This means that Excel has a majority of votes in most
community meetings and by using these votes, Excel nominated one of its
officers the president of the community. Excel even used these proxy votes to
push through the items while the private owners were demanding a contrary
decision.
Unsaleable Apartments and
Company Participation
The
apartments that are under rental contract are next to impossible to sell and it
is because the current contract only allows owners to use their apartments for
8 weeks in a year. The income is calculated as a share of gross profits but
purchasers fear that this figure can be easily manipulated. There are many
contracts which are of 5 years duration. In addition to these difficulties,
many investors do not directly hold the title deeds of an apartment but they
have bought shares in a company that in turn should own an apartment. The
secondary market for such shares is almost negligible, so it is impossible for
investors to get their money back.
What You Can Do?
Investors
can consult Nordic Consulting
which specializes in timeshare ownership investments CANARY ISLANDS. There are
many favourable judgements which have been awarded from the court of Arona. So
if you are stuck in the similar problem, now is the right time to get legal
consultation!
