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Freddie Lombard
Freddie Lombard, Attorney
Category: South Africa Law
Satisfied Customers: 2409
Experience:  Practicing attorney and conveyancer with 16 years post article experience.
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What is my Legal Rights if I want to cancel share block

Customer Question

Hi there,
What is my Legal Rights if I want to cancel share block investment in a Time Share Scheme that was signed more than 40 years ago. Due to my age (69) I cannot afford the annual levies of over R 7,000.00 any more. Please advise.
Kind regards ***@******.***
Submitted: 4 months ago.
Category: South Africa Law
Expert:  Freddie Lombard replied 4 months ago.

Good afternoon,

Thank you for your question. I will try to assist you in answering it today but please feel free to ask as many follow up questions as you like until you are 100% satisfied.

This is a very difficult question, and unfortunately not one with a clear and simple answer.

The current situation is unclear, and has not been tested in a Court. The Consumer Protection Act (CPA) makes provision for the cancellation of fixed term contracts in certain circumstances, and under certain conditions. The problem with these time share agreements is that they are not fixed term contracts and they are in fact contracts that are binding in perpetuity.

The effect of this is that the CPA is not specifically applicable to them.

And, the only manner to cancel these type of agreements is BY AGREEMENT between the parties, and from my experience, the provider will only consider a request for cancellation in the event that the consumer is up to date with all their payments due for the points, levies and other charges. Even then, the consumer can only request cancellation, and the provider can, in terms of the contract and constitution of the company refuse such a request.

To cancel the agreement due to (for instance) the non performance of the provider, is very difficult, because the small print basically absolves them from any responsibility - they NEVER guarantee that accommodation at the chosen resort will be available for instance.

The long and short of it is, that a Court will always give preference to rather enforcing a contract than to cancelling it. This is mainly due to the fact that the Courts do not want to create any uncertainty in the law, and once contracts become "cancellable at the whim of a party" the law will become completely uncertain. The fact is that when the contract was signed, it was by agreement, and it is therefore accepted that the parties accepted the terms and wanted to enter into the agreement, and that they understood the contents and consequences.

In other words, the courts will not lightly involve itself with the contract and unless it can be shown that the contract is illegal or against the public interest, they will allow people to freely contract with one another

I hope this answered your question.

I know it will take an extra minute of your time to rate my service, but if you do not rate it, I do not get paid by the website so I would really appreciate it if you would be so kind as to rate my service positively. Feel free to ask further question here on this topic at no extra cost if you need more information.


Expert:  Freddie Lombard replied 4 months ago.

Good morning,

This is just a quick note to follow up. Did you find my answer helpful? Is there anything else I can assist you with before you rate the service? Please note that I do not get paid if you do not rate.