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LEGAL ACTS OF THE REPUBLIC OF LATVIA
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The translation of this document is outdated.
Translation validity: 23.02.2011.–01.08.2014.
Amendments not included: 29.07.2014.

Republic of Latvia

Cabinet
Regulation No. 136
Adopted 22 February 2011

Regulations Regarding Contracts on the Right of Long-term Use of Holiday Accommodations, Long-term Contracts on Holiday Products, Contracts on the Resale of the Right of Long-term Use of Holiday Accommodations or Holiday Products and Contracts for Exchange of Long-term Right to Holiday Accommodations

Issued pursuant to Section 11, Paragraph thirteen
of the Consumer Rights Protection Law
and Section 7 Paragraph two of the Advertising Law

I. General Provisions

1. This Regulation prescribes the content of information to be provided to a consumer prior to the conclusion of a contract on the right of long-term use of holiday accommodations (hereinafter - timeshare contract), a long-term contract on holiday products (hereinafter - holiday product contract), a contract on the resale of the right of long-term use of holiday accommodations or holiday products (hereinafter - resale contract) or a contract foe exchange of the long-term right to holiday accommodations (hereinafter - exchange contract), as well as the content of, and notification procedures for, information to be included in the respective contract, the time limitations of, and procedures for, exercising the right of withdrawal, the consequences of the application of withdrawal forms and withdrawal rights, as well as the special requirements to be fulfilled upon conclusion of the respective contract.

II. Pre-Contractual Information to be Provided to Consumers

2. Prior to the conclusion of the respective contract, a trader shall provide clear, comprehensible, accurate and sufficient information:

2.1. in the case of a timeshare contract - by means of the standard information form as set out in Annex 1 to this Regulation, including information listed in Part 3 of that form;

2.2. in the case of a holiday product contract - by means of the standard information form as set out in Annex 2 to this Regulation, including information listed in Part 3 of that form;

2.3. in the case of a resale contract - by means of the standard information form as set out in Annex 3 to this Regulation, including information listed in Part 3 of that form;

2.4. in the case of an exchange contract - by means of the standard information form as set out in Annex 4 to this Regulation, including information listed in Part 3 of that form.

3. The information referred to in Paragraph 2 of this Regulation shall be provided, free of charge, by the trader on paper or on another durable medium which is easily accessible to the consumer.

4. Prior to the conclusion of a timeshare contract, holiday product contract, resale contract or exchange contract, the trader shall explicitly draw the consumer's attention to the contractual provisions regarding rights of withdrawal, length of the withdrawal period, ban on any requests to the consumer for advance payments, provision of guarantees, explicit acknowledgement of debt or any other consideration to the trader or to any third party by the consumer, as well as ban on reservation of money in a bank account of the consumer during the withdrawal period. Having been informed on the respective contractual provisions, the consumer shall acknowledge it by his or her signature at the end of Part 2 of the standard information form set out in Annexes 1, 2, 3 and 4 to this Regulation.

5. Prior to the conclusion of the respective contract, the trader shall communicate to the consumer (on paper or on another durable medium) any changes in the information referred to in Paragraph 2 of this Regulation.

III. Requirements Specified for Advertising

6. Any advertising shall specify the possibility, for the consumer, of obtaining the information referred to in Paragraph 2 of this Regulation, as well as shall indicate where such information can be obtained.

7. Where a timeshare contract, holiday product contract, resale contract or exchange contract is offered to a consumer in person at a promotion or sales event, the trader shall clearly indicate in the invitation the commercial purpose and the nature of the event. The trader shall ensure that the information referred to in Paragraph 2 of this Regulation is available to the consumer at any time during such event.

8. The right of long-term use of holiday accommodations or holiday products shall not be advertised or sold as an investment.

IV. Information to be Indicated in the Contract

9. In addition to the information referred to in Paragraph 2 of this Regulation, the contract shall include the following information:

9.1. the identity, place of residence and signature of each of the parties; and

9.2. the date and place of the conclusion of the contract.

10. The information referred to in Paragraph 2 of this Regulation shall form an integral part of the contract and shall not be altered unless the parties expressly agree otherwise or the changes result from unusual and unforeseeable circumstances beyond the trader's control, the consequences of which could not have been avoided even if all due care had been exercised. The contract shall expressly mention any such changes.

11. The contract shall include a separate standard withdrawal form (Annex 5), intended to facilitate the exercise of the right of withdrawal.

V. Modalities for Exercising the Right of Withdrawal

12. The consumer may exercise the right of withdrawal and unilaterally withdraw, within 14 days, from the timeshare contract, holiday product contract, resale contract or exchange contract, without giving any reason.

13. The time period for exercising the right of withdrawal shall be calculated from the day of the conclusion of the contract, including a preliminary contract, or from the day when the consumer receives the contract or preliminary contract if it is later than the date of conclusion of such contract or preliminary contract.

14. Where the trader has not appended the standard withdrawal form as required by Paragraph 11 of this Regulation to the contract, on paper or on another durable medium, the consumer is entitled to exercise the withdrawal right and unilaterally withdraw from the contract within one year and 14 days from the day referred to in Paragraph 13 of this Regulation.

15. Where the trader has not provided the information referred to in Paragraph 2 of this Regulation to the consumer, the consumer is entitled to exercise the withdrawal right and unilaterally withdraw from the contract within three months and 14 days from the day referred to in Paragraph 13 of this Regulation.

16. Where the trader has issued the standard withdrawal form as required by Paragraph 11 of this Regulation to the consumer (on paper or on another durable medium) within one year from the day referred to in Paragraph 13 of this Regulation, the consumer is entitled to exercise the withdrawal right and unilaterally withdraw from the contract within 14 days from the day when the consumer receives such standard withdrawal form.

17. Where the trader has provided the consumer with the information referred to in Paragraph 2 of this Regulation within three months from the day referred to in Paragraph 13 of this Regulation, the consumer is entitled to exercise the withdrawal right and unilaterally withdraw from the contract within 14 days from the day when the consumer receives such information.

18. Where the exchange contract and the timeshare contract are offered together, only a single withdrawal period shall apply to both contracts. The withdrawal period for the referred to contracts shall be calculated in accordance with Paragraph 13 of this Regulation.

19. In order to exercise the right of withdrawal the consumer shall, before the expiry of the withdrawal period, notify the trader thereof on paper or on another durable medium. The consumer may use the standard withdrawal form referred to in Paragraph 11 of this Regulation. The deadline is met if a notification on exercising the right of withdrawal is sent by the consumer to the trader before the withdrawal period has expired.

20. Where the consumer exercises the right of withdrawal, the timeshare contract, holiday product contract, resale contract or exchange contract concluded shall be null and void, the consumer shall neither bear any cost nor be liable for any value corresponding to the service which may have been performed by the trader before the withdrawal.

21. Where the consumer exercises the right of withdrawal from the timeshare contract or holiday product contract and an exchange contract or another ancillary contract on services provided by the trader or a third party on the basis of an arrangement between the third party and the trader has been concluded in relation to the referred to contracts, the exchange contract or another ancillary contract shall be null and void and the consumer does not have a duty to cover any costs.

22. Where the consumer has concluded a consumer credit agreement with the trader or a third party in accordance with an arrangement between the third party and the trader and the objective of the consumer credit agreement is to fully or partially finance the provision of the financial service in accordance with the timeshare contract, holiday product contract, resale contract or exchange contract, such consumer credit agreement shall be null and void where the consumer, upon exercising the right of withdrawal, has unilaterally withdrawn from the relevant contract. In such case, neither the trader nor the creditor may claim from the consumer any penalties or damages related to the withdrawal from the consumer credit agreement.

VI. Requirements for Holiday Product Contracts

23. Payments for the holiday product contract shall be made according to a staggered payment schedule specified in the holiday product contract. Any other payment procedures are prohibited.

24. The payments to be performed, including any membership fee, shall be divided into yearly instalments. Each instalment shall be of equal value.

25. The trader shall send to the consumer a request for payment (on paper or on another durable medium) at least 14 days in advance of each due date.

26. From the second instalment payment onwards, the consumer is entitled to terminate the contract, without incurring any penalty, if the consumer has given notice regarding termination of the contract to the trader within 14 days from the day when the request for payment of the current instalment is received.

VII. Supervision

27. Supervision of this Regulation shall be implemented by the Consumer Rights Protection Centre.

VIII. Final Provision

28. This Regulation shall come into force on 23 February 2011.

Informative Reference to the European Union Directive

This Regulation contains legal norms arising from Directive 2008/122/EC of the European Parliament and of the Council of 14 January 2009 on the protection of consumers in respect of certain aspects of timeshare, holiday product, resale and exchange contracts.

Prime Minister V. Dombrovskis

Minister for Economics A. Kampars

 

Annex 1
Cabinet Regulation No. 136
22 February 2011

Standard Information Form for Timeshare Contracts

Part 1

Identity, registered address and actual address (where different from registered address) and legal status of the trader
Short description of the product (e.g. description of the immovable property)

Exact nature and content of the right(s) of use

Exact period within which the consumer may exercise the right of use, and the duration of the contract

Date on which the consumer may start to exercise the right of use.

If the contract concerns a specific property under construction, specify the date when the holiday accommodation and services/facilities will be completed/available

Price to be paid by the consumer for acquiring the right of use

Outline of obligatory costs to be paid by the consumer under the contract; type of costs and indication of amounts (e.g. annual fees, other recurrent fees, duties, taxes)

Key services available to the consumer (e.g. electricity, water, maintenance, refuse collection) and an indication of the amount to be paid by the consumer for such services

Facilities available to the consumer (e.g. swimming pool or sauna)

Are these facilities available to the consumer included in the costs to be paid by the consumer, indicated above? If not, specify what is included and what has to be paid for

Is it possible to join an exchange scheme?

If yes, specify the name of the exchange scheme

Indication of costs for membership/exchange

Has the trader signed a code/codes of conduct and, if yes, where can it/they be found?

Part 2

General Information

- The consumer has the right to withdraw from this contract without giving any reason within 14 days from the day when the contract or preliminary contract is concluded or from the day when the contract or preliminary contract is received if that takes place later

- During this withdrawal period, the trader or a third party is prohibited to request any advance payment and any consideration from the consumer, including provision of guarantees, explicit acknowledgement of debt or certification of any other consideration, as well as reservation of money on accounts

- The consumer shall not bear any costs or obligations other than those specified in the contract

- In accordance with international private law, the contract may be governed by a law other than the law of the Member State in which the consumer is resident or is habitually domiciled and possible disputes may be referred to courts other than those of the Member State in which the consumer is resident or is habitually domiciled

The consumer    
  (given name, surname)   (signature)

Part 3

Additional information to which the consumer is entitled It shall be indicated where it can be obtained specifically (for instance, under which chapter of a general brochure) if not provided below

1. INFORMATION ABOUT THE RIGHTS ACQUIRED

- Conditions governing the exercise of the right within the territory of the state in which the immovable property or properties concerned are situated and information on whether those conditions have been fulfilled. If they have not, what conditions remain to be fulfilled

- Where the contract provides rights to occupy accommodation to be selected from a pool of accommodation, information on restrictions on the consumer's ability to use any accommodation in the pool at any time

2. INFORMATION ON THE PROPERTIES

- Where the contract concerns a specific immovable property, an accurate and detailed description of that property and its location; where the contract concerns a number of properties (multi-resorts), an appropriate description of the properties and their location; where the contract concerns accommodation other than immovable property, an appropriate description of the accommodation and the facilities

- The services (e.g. electricity, water, maintenance, refuse collection) to which the consumer has or will have access to and under what conditions

- The facilities, if any (e.g. swimming pool, sauna) to which the consumer has or will have access to and under what conditions

3. ADDITIONAL REQUIREMENTS FOR ACCOMMODATION UNDER CONSTRUCTION

- The state of completion of the accommodation and of the services rendering the accommodation fully operational (gas, electricity, water and telephone connections) and any facilities to which the consumer will have access

- The deadline for completion of the accommodation and of the services rendering it fully operational (gas, electricity, water and telephone connections) and a reasonable estimate of the deadline for the completion of any facilities to which the consumer will have access

- The number of the building permit and the name(s) and full address(es) of the competent authority or authorities which issued the building permit

- A guarantee regarding completion of the accommodation or a guarantee regarding reimbursement of any payment made if the accommodation is not completed and, where appropriate, the conditions governing the operation of such guarantees

4. INFORMATION ON THE COSTS

- An accurate and appropriate description of all costs associated with the timeshare contract; how these costs will be allocated to the consumer and how and when such costs may be increased; the method for the calculation of the amount of charges relating to occupation of the property, the mandatory statutory charges (for example, taxes and fees) and the administrative overheads (for example, management, maintenance and repairs)

- Where applicable, information on whether there are any charges, mortgages, encumbrances or any other liens recorded against title to the accommodation

5. INFORMATION ON TERMINATION OF THE CONTRACT

- Where appropriate, information on the arrangements for the termination of ancillary contracts and the consequences of such termination

- Conditions for terminating the contract, the consequences of termination, and information on any liability of the consumer for any costs which might result from such termination

6. ADDITIONAL INFORMATION

- Information on how maintenance and repairs of the property and its administration and management are arranged, including whether and how consumers may influence and participate in the decisions regarding these issues

- Information on whether or not it is possible to join a system for the resale of the contractual rights, information about the relevant system and an indication of costs related to resale through this system

- Indication of the language(s) available for communication with the trader in relation to the contract, for instance in relation to management decisions, increase of costs and the handling of queries and complaints

- Where applicable, the possibility for out-of-court dispute resolution

Acknowledgement of receipt of information  
The consumer      
  (given name, surname)   (signature)

Minister for Economics A. Kampars

 

Annex 2
Cabinet Regulation No. 136
22 February 2011

Standard Information Form for Holiday Product Contracts

Part 1

Identity, registered address and actual address (where different from registered address) and legal status of the trader(s)
Short description of the product (e.g. description of the immovable property):

Exact nature and content of the right(s):

Exact period within which the consumer may exercise the right of use, as well as the duration of the contract

Date on which the consumer may start to exercise the right of use

Price to be paid by the consumer for acquiring the contractual right(s), including any recurring costs the consumer can expect to incur resulting from the right to obtain access to the accommodation, travel and any related products or services as specified in the contract

The staggered payment schedule setting out equal amounts of instalments of this price for each year of the length of the contract and the dates on which they are due to be paid

After year 1, subsequent amounts may be adjusted to ensure that the real value of those instalments is maintained, for instance to take account of inflation

Outline of additional obligatory costs imposed under the contract; type of costs and indication of amounts (e.g. annual membership fees)

Key services available to the consumer (e.g. discounted hotel stays and flights)

Are the services available to the consumer included in the costs imposed under the contract? If not, specify what is included and what has to be paid for (e.g. three-night stay included in annual membership fee, all other accommodation must be paid for separately)

Has the trader signed a code/codes of conduct and, if yes, where can it/they be found?

Part 2

General Information

- The consumer has the right to withdraw from this contract without giving any reason within 14 days from the day when the contract or preliminary contract is concluded or from the day when the contract or preliminary contract is received if that takes place later

- During this withdrawal period, the trader or a third party is prohibited to request any advance payment and any consideration from the consumer, including provision of guarantees, explicit acknowledgement of debt or certification of any other consideration, as well as reservation of money on accounts.

- The consumer has the right to terminate the contract without incurring any penalty by giving notice to the trader within 14 days of receiving the request for payment for each annual instalment

- The consumer shall not bear any costs or obligations other than those specified in the contract

- In accordance with international private law, the contract may be governed by a law other than the law of the Member State in which the consumer is resident or is habitually domiciled and possible disputes may be referred to courts other than those of the Member State in which the consumer is resident or is habitually domiciled

The consumer    
  (given name, surname)   (signature)

Part 3

Additional information to which the consumer is entitled. It shall be indicated where it can be obtained specifically (for instance, under which chapter of a general brochure) if not provided below

1. INFORMATION ABOUT THE RIGHTS ACQUIRED

- An appropriate and correct description of discounts available for future bookings. Description illustrated by a set of examples of recent offers

- Information on the restrictions on the consumer's ability to use the rights, such as limited availability or offers provided on a first-come-first-served basis, time limits on particular promotions and special discounts

2. INFORMATION ON TERMINATION OF THE CONTRACT

- Where appropriate, information on the arrangements for the termination of ancillary contracts and the consequences of such termination

- Conditions for terminating the contract, the consequences of termination, and information on any liability of the consumer for any costs which might result from such termination

3. ADDITIONAL INFORMATION

- Indication of the language(s) available for communication with the trader in relation to the contract, for instance in relation to management decisions, increase of costs and the handling of queries and complaints

- Where applicable, the possibility for out-of-court dispute resolution

Acknowledgement of receipt of information  
The consumer      
  (given name, surname)   (signature)

Minister for Economics A. Kampars

 

Annex 3
Cabinet Regulation No. 136
22 February 2011

Standard Information Form for Resale Contracts

Part 1

Identity, registered address and actual address (where different from registered address) and legal status of the trader(s)
Short description of the services (e.g. marketing)
Duration of the contract
Price to be paid by the consumer for acquiring the services

Outline of additional obligatory costs imposed under the contract; type of costs and indication of amounts (e.g. local taxes, notary fees, cost of advertising)

Has the trader signed a code/codes of conduct and, if yes, where can it/they be found?

Part 2

General Information

- The consumer has the right to withdraw from this contract without giving any reason within 14 days from the day when the contract or preliminary contract is concluded or from the day when the consumer receives the contract or preliminary contract if that takes place later

- During this withdrawal period, the trader or a third party is prohibited to request any advance payment and any consideration from the consumer, including provision of guarantees, explicit acknowledgement of debt or certification of any other consideration, as well as reservation of money on accounts

- The consumer shall not bear any costs or obligations other than those specified in the contract

- In accordance with international private law, the contract may be governed by a law other than the law of the Member State in which the consumer is resident or is habitually domiciled and possible disputes may be referred to courts other than those of the Member State in which the consumer is resident or is habitually domiciled

The consumer  
  (given name, surname)   (signature)

Part 3

Additional information to which the consumer is entitled. It shall be indicated where it can be obtained specifically (for instance, under which chapter of a general brochure) if not provided below

- Conditions for terminating the contract, the consequences of termination, and information on any liability of the consumer for any costs which might result from such termination

- Indication of the language(s) available for communication with the trader in relation to the contract, for instance in relation to management decisions, increase of costs and the handling of queries and complaints

- Where applicable, the possibility for out-of-court dispute resolution

Acknowledgement of receipt of information  
The consumer      
  (given name, surname)   (signature)

Minister for Economics A. Kampars

 

Annex 4
Cabinet Regulation No. 136
22 February 2011

Standard Information Form for Exchange Contracts

Part 1

Identity, registered address and actual address (where different from registered address) and legal status of the trader(s):
Short description of the services (e.g. marketing):

Exact nature and content of the right(s):

Exact period of time within which the consumer may exercise the right of use

Date on which the consumer may start to exercise the contractual right

Price to be paid by the consumer for the exchange membership fees

Outline of additional obligatory costs imposed under the contract; type of costs and indication of amounts (e.g. renewal fees, other recurrent fees, taxes, duties)

Key services available to the consumer

Are the services available to the consumer included in the costs imposed under the contract? If not, specify what is included and what has to be paid for ( e.g. an estimate of the price to be paid for individual exchange transactions, including any additional charges)

Has the trader signed a code/codes of conduct and, if yes, where can it/they be found?

Part 2

General Information

- The consumer has the right to withdraw from this contract without giving any reason within 14 days from the day when the contract or preliminary contract is concluded or from the day when the consumer receives the contract or preliminary contract if that takes place later

- During this withdrawal period, the trader or a third party is prohibited to request any advance payment and any consideration from the consumer, including provision of guarantees, explicit acknowledgement of debt or certification of any other consideration, as well as reservation of money on accounts

- The consumer shall not bear any costs or obligations other than those specified in the contract

- In accordance with international private law, the contract may be governed by a law other than the law of the Member State in which the consumer is resident or is habitually domiciled and possible disputes may be referred to courts other than those of the Member State in which the consumer is resident or is habitually domiciled

The consumer  
(given name, surname)   (signature)

Part 3

Additional information to which the consumer is entitled. It shall be indicated where it can be obtained specifically (for instance, under which chapter of a general brochure) if not provided below

1. INFORMATION ABOUT THE RIGHTS ACQUIRED

- Explanation of how the exchange system works; the possibilities and modalities for exchange; an indication of the value allotted to the consumer's right of use of holiday accommodation in the exchange system and a set of examples of concrete exchange possibilities

- Indication of the number of resorts available and the number of members in the exchange system, including any limitations on the availability of particular accommodation selected by the consumer (for example, as the result of peak periods of demand), the potential need to book a long time in advance, and indications of any restrictions on the choice resulting from the right of use of holiday accommodation deposited into the exchange system

2. INFORMATION ON THE PROPERTIES

- A brief and appropriate description of the properties and their location; where the contract concerns accommodation other than immovable property, a brief and appropriate description of the accommodation, as well as description on where the consumer can obtain further information

3. INFORMATION ON THE COSTS

- Information on the obligation on the trader to provide details before an exchange is arranged, in respect of each proposed exchange, of any additional charges for which the consumer is liable in respect of the exchange

4. INFORMATION ON TERMINATION OF THE CONTRACT

- Where appropriate, information on the arrangements for the termination of ancillary contracts and the consequences of such termination

- Conditions for terminating the contract, the consequences of termination, and information on any liability of the consumer for any costs which might result from such termination

5. ADDITIONAL INFORMATION

- Indication of the language(s) available for communication with the trader in relation to the contract, for instance in relation to management decisions, increase of costs and the handling of queries and complaints

- Where applicable, the possibility for out-of-court dispute resolution

Acknowledgement of receipt of information  
The consumer      
  (given name, surname)   (signature)

Minister for Economics A. Kampars

 

Annex 5
Cabinet Regulation No. 136
22 February 2011

Separate Standard Withdrawal Form to Facilitate the Right of Withdrawal

Right of withdrawal

The consumer has the right to withdraw from this contract within 14 days without giving any reason.

The right of withdrawal starts from1 … _________________________________________

Where the consumer has not received this form, the withdrawal period starts when the consumer has received this form, but expires in any case after one year and 14 days.

Where the consumer has not received all the required information, the withdrawal period starts when the consumer has received that information, but expires in any case after three months and 14 days.

Where the consumer exercises the right of withdrawal, he or she shall notify the trader sending the information to the address indicated (by post, e-mail). The consumer may use this form, but it is not obligatory.

Where the consumer exercises the right of withdrawal, the consumer shall not be liable for any costs.

In addition to the right of withdrawal, regulatory enactments may provide for other consumer rights, e.g. to terminate the contract in case of omission of information.

Ban on advance payment

During this withdrawal period, the trader or a third party is prohibited to request any advance payment and any consideration from the consumer, including provision of guarantees, explicit acknowledgement of debt or certification of any other consideration, as well as reservation of money on accounts.

Notice of withdrawal
To (given name, surname and address of the trader1)
Date of conclusion of contract1
 
 
I/We (.......................) hereby give notice that I/We (.......................) withdraw from the contract.
Given name, surname of consumer(s)2:
 
Address(es) of consumer(s)2
   
(signature(s) of consumer(s)3):   (date3)
Notes:

1 To be filled in by the trader before the issuance of the form to the consumer.

2 To be filled in by the consumer(s) where he or she uses this form to withdraw from the contract.

3 The details "signature(s) of the consumer(s)" and "date" of the document shall not be filled in if the electronic document has been drawn up in conformity with the regulatory enactments regarding drawing up of electronic documents.

Acknowledgement of receipt of information  
The consumer      
  (given name, surname)   (signature)

Minister for Economics A. Kampars

 


Translation © 2011 Valsts valodas centrs (State Language Centre)

 
Document information
Title: Noteikumi par brīvdienu mītnes ilgtermiņa lietošanas tiesību līgumu, brīvdienu pakalpojumu ilgtermiņa .. Status:
In force
in force
Issuer: Cabinet of Ministers Type: regulation Document number: 136Adoption: 22.02.2011.Entry into force: 23.02.2011.Publication: Latvijas Vēstnesis, 30, 23.02.2011.
Language:
LVEN
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