MGM sell another resort as real estate leaving timeshare owners with even less availability! MGM set to sell Tenerife’s Muthu Royal Parque Albatros and freehold real estate. Around 160 apartments are now up for sale on the prestigious aparthotel located in Golf del Sur.
How can they sell the properties without the timeshare owners’ permission?
MGM convinces the majority of their members to buy into the Club Infiniti point system. They succeeded in doing so with the promise of more flexibility when booking holidays.
Club Infiniti members will now find it even more difficult to book the holidays that they want. The 160 apartments provided accommodated for around 8100 timeshare owners per year! These will now need to find alternative accommodation.
Is there enough availability?
No, once MGM sell Royal Parque Albatros, there will not enough availability to accommodate every family. This will cause many members being forced to pay additional fees to join exchange programs such as RCI.
Is this legal?
The EU Directive states that all long-term holiday products such as timeshare, and fractional ownerships must state a hotel complex name, apartment number and week number on their contracts. Point systems and floating weeks have been illegal since 1999 and all memberships purchased before this year need to have their contracts amended.
If your contract states that you own at Royal Parque Albatros, then they will need to either change the resort name on your paperwork, or buy you out of the agreement. If you contract does not state a resort name, then you could be eligible to terminate the agreement and claim compensation.
This isn’t the first time MGM have made headlines. It was uncovered not so long ago that they were selling exit packs with the promise that the owners will no longer be liable for the ownership once the duration of the pack came to an end. This never materialised and owners were left with full ownerships because they accepted bonus points when buying into the packs. These bonus points were full ownerships that carried high maintenance fees.
Long term holiday products can only be sold for a duration of 3 – 49 years. Any contract that is in perpetuity or states no end date are illegal and compensation could possibly be obtained.
Use the online claims calculator to find out if you are eligible to claim compensation