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!