South African Timeshare Owners Lose Rights To Occupation
Over 600 consumers of a South African Timeshare in Mpumalanga, will lose their ownership due to a judgement terminating the lease of a shareblock scheme.
The Johannesburg High Court judgement ruled that the shareblock company breached its lease agreement by failing to submit a project plan in 2015 for maintenance and repair work. Due to this, it was ruled that the property landlord could cancel the lease of the shareblock. The South African timeshare, Burchells Bush Lodge, which has rented the property since 2003, was ordered to vacate the property within 14 days of the ruling.
The chairman of Burchell’s Bush Lodge, Nick Dickson, has said the shareblock company would not be vacating the premises and that he would be applying for leave to appeal against the judgment.
What this means for owners
Even though timeshare consumers still own shares in the property, this judgment means they have lost their right to occupy it, meaning they are paying for a service they are now unable to use.
Owners have been notified of the judgment and were invited to an information session in Johannesburg. Many owners are appealing the decision. However, if the company appeal fails and Burchell’s Bush Lodge goes into liquidation, they will then be ordered to pay out a liquidation dividend to the South African timeshare owners. Although this would be a worst-case scenario for the company, all hope is not lost for the timeshare owners.
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