Timeshare and property-purchase fraud aimed at foreigners

Terms used

• Aval — An aval is a bank guarantee that returns your advance payments if the developer fails to finish or deliver the home.
• Nota simple — The nota simple is a short registry extract showing a property's registered owner, description and any charges on it.
• Cargas — Cargas are charges on a property, such as mortgages, seizures and easements, that can affect a buyer.
• Escritura — The escritura is the title deed, signed before a notary, that records who owns a property.
• IBI — The IBI is the yearly local property tax.
• Catastro — The Catastro is the official property register used for tax, giving each property a reference number.
• Denuncia — A denuncia is a formal criminal complaint filed with the police or prosecutor.
• OMIC — The OMIC is the local town hall office that takes consumer complaints.

Key rules

• Upfront fees: Resale and exit firms may not take any payment upfront, so a request for money before the sale or cancellation has happened is illegal.
• Withdrawal: You can pull out of a timeshare contract within 14 calendar days, and for up to one year and 14 days if the standard form or information was missing.
• Off-plan guarantee: Pay a developer only into the special account, and only once you hold the guarantee for your advances.
• Title: Never pay a seller until the nota simple shows they are the registered owner.
• Lawyer: Use an independent Spanish lawyer before you sign anything.

The short version

Three situations cause most losses: paying a developer for a home that is not built, buying from someone who does not own the property, and paying a firm to sell or cancel your timeshare. Spanish law protects you in each case, but only if you use the protections before you pay.

Resale and exit firms: never pay upfront

Resale and exit firms may not take any payment upfront, so a request for money before the sale or cancellation has happened is illegal. This covers "fees", deposits, reservations and "guarantees". Typical pitches claim a buyer is waiting, or that your contract can be cancelled once you pay an administration fee.

If you already paid:

• Keep every document, message and receipt.
• Complain to the regional consumer authority (Consumo) or your local consumer office (OMIC).
• Demand a refund. Such payments are void, and courts have repeatedly ordered them returned.
• In clear fraud cases, file a denuncia with the Policía Nacional or Guardia Civil.

Timeshare contracts: your protections

• The contract must be in writing, in a language you choose among those of your country of residence or nationality in the EU, with standard information and a withdrawal form.
• You can withdraw within 14 calendar days without penalty and without giving a reason.
• If the standard form or information was missing, the withdrawal period extends to one year and 14 days.
• Nobody may take payment before the withdrawal period ends.
• If you withdraw, any loan linked to the purchase is cancelled automatically.
• Perpetual contracts are prohibited. New contracts can last at most 50 years.
• Supreme Court rulings since 2015 have annulled many older perpetual or badly drafted contracts. If you hold one, a Spanish lawyer can tell you whether a claim is worth bringing.

Off-plan homes: insist on the guarantee

If you pay a developer before the home is finished, the developer must guarantee your money back. The guarantee is a bank guarantee (aval) or insurance from an authorised insurer. It covers your advances plus legal interest if the home is not finished or not delivered on time.

Before you pay anything:

• Ask for the guarantee document and check the contract names it.
• Ask for the number of the special bank account your advances must go into, and pay only into that account.
• Ask for proof of the ten-year structural insurance on the finished home.

Buying a resale property: check the title

Ask for a nota simple from the property registry (Registro de la Propiedad). You can request it online or in person for a small fee. It shows the registered owner, the property description and any cargas, meaning mortgages, seizures and easements.

• The owner on the nota simple must be your seller. Ask the seller for the escritura too.
• Ask for the latest IBI receipt, a certificate showing no debts to the community of owners, and the energy certificate.
• Check the Catastro reference, and that the building has licences and no planning irregularities.
• A mortgage can be cleared at closing, paid by bank cheque. The notary checks identities and the registry position when drawing up the deed.
• Register the deed after signing.
• Hire an independent Spanish lawyer before you sign. Do not use one recommended only by the seller or developer.

Where to get help

• Consumo and your local OMIC take complaints and can fine firms.
• If you live in another EU country, Norway or Iceland, the Spanish European Consumer Centre helps with cross-border disputes. The UK has a separate service.
• The Junta Arbitral de Consumo offers arbitration if the firm has signed up to it.
• The civil courts handle annulment and refund claims, usually with a Spanish lawyer and procurador.
• Consumer groups such as FACUA and OCU also help. Your embassy or consulate can point you to local routes.

The decision, timeline, documents, checklist, warnings and FAQ below cover the detail of each step.

Choosing between options

Should you pay now, or wait until the protections are in place?

• Go ahead and pay: The guarantee document and special account number are in hand for an off-plan home, or the nota simple shows the seller owns the property free of cargas.

• Withdraw from the timeshare contract: You are still within 14 calendar days of signing, or the standard form or information was missing, in which case you have up to 1 year and 14 days.

• Pause and ask a lawyer first: A firm asks for money before a resale or cancellation has happened, or the seller, guarantee or registry details do not match.

Pay only when the guarantee, the account and the registry details check out; otherwise withdraw, or stop and take advice.

Timeline and deadlines

• Receive the written contract with the standard information and withdrawal form: before you sign

• Pay nothing in advance to the trader: until the 14-day withdrawal period has ended

• Withdraw if the standard form or information was missing: up to 1 year and 14 days after signing

• Pay a resale or exit firm only once the sale or cancellation has actually happened: after the sale or termination is complete

Documents you need

• Written timeshare contract, in a language you choose among those of your country of residence or nationality in the EU, with the standard pre-contract information and the withdrawal form.

• Guarantee document for advance payments on an off-plan home: a bank guarantee (aval) or insurance from an authorised insurer, covering your advances plus legal interest.

• Nota simple from the Registro de la Propiedad (the property registry), showing the registered owner, the property description and any cargas such as mortgages or seizures.

• Escritura (title deed) from the seller, with the owner's name matching the nota simple.

• Latest IBI receipt (the yearly local property tax) and a certificado de deudas from the community of owners showing no debts.

• Energy certificate for the property.

Checklist

• Ask the developer for the guarantee document (bank aval or insurance) covering your advance payments.

• Request a nota simple from the property registry and check the owner matches the seller.

• Read the nota simple for cargas such as mortgages, seizures and easements.

• Register the deed in the property registry after signing.

What to watch out for

• Upfront fees from resale or exit firms: A firm that asks for money before your timeshare is sold or cancelled is breaking the law, and the payment is void. You may lose the money and get nothing. Refuse to pay anything upfront. If you already paid, keep all documents, demand a refund in writing, complain to Consumo and report fraud to the police.

• Advance payments on an off-plan home without a guarantee: If the developer fails and your advances have no bank guarantee or insurance, you may not get your money back. Do not pay until you hold the guarantee document and the special account number.

• Payment before the withdrawal period ends: A timeshare seller cannot take any advance payment before your 14-day withdrawal period ends. A demand for money earlier is a red flag. Pay nothing until the period is over, and keep your withdrawal form.

• Seller who is not the registered owner: A seller who is not the owner on the registry, or a property with hidden mortgages or seizures, can leave you paying for a home you do not fully own. Get a nota simple, match the owner to the seller, and have a lawyer check before you pay.

• Old or perpetual timeshare contracts: Contracts with no end date or missing required information may be void, so do not assume you are stuck. Show your contract to a Spanish lawyer or consumer association before paying anyone to exit it.

Frequently asked questions

Can I get my money back if I already paid an upfront fee to a timeshare resale firm?

Yes, you can demand a refund of an upfront fee paid to a resale or exit firm, because the payment is void. Keep every document and send your claim in writing. You can also claim damages, and courts have repeatedly ordered such payments returned.

Can an old timeshare contract be declared void in Spain?

Yes, many older perpetual or badly drawn timeshare contracts have been declared void by the Spanish Supreme Court since 2015. New contracts cannot last more than 50 years. If yours has no end date or lacks the required withdrawal form, ask a Spanish lawyer whether you can claim.

Where can a foreign buyer complain about a timeshare or property firm?

Start with the regional consumer authority (Consumo) or your town's consumer office (OMIC), which take complaints and can fine firms.

What happens to my loan if I cancel a timeshare contract within the withdrawal period?

The loan linked to the timeshare is cancelled automatically when you withdraw from the main contract. You do not need to cancel it separately. Still, send your written withdrawal to both the seller and the lender and keep proof.