Time-share, or timeshare, has attracted private individuals in France for decades who are looking for a lower-cost holiday residence. This arrangement allows you to acquire a right of use over a property for a specific period each year, rather than full ownership of the accommodation. Before making a commitment, it is essential to understand how it works legally, its historical advantages, and, above all, the well-documented resale difficulties that have led to its decline in France.
In Summary
- Time-share grants a right of use over a property for a fixed period each year, governed since 1986 by a specific legal framework designed to protect the purchaser.
- The legal framework provides for a 14-day withdrawal period and detailed pre-contractual information, but does not protect against low resale value.
- The resale market is extremely difficult: the value of time-share weeks is often virtually zero, while annual charges continue to increase.
- For a second-home or seasonal rental investment project, full ownership, conventional seasonal rental, or a family SCI are safer and more liquid alternatives.
Definition and Legal Forms of Time-Share
What Is Time-Share?
Time-share, also known as timeshare or shared-time use, consists of acquiring not full and complete ownership of a property, but a right to use a real estate property — most often an apartment in a holiday residence — during a specific and recurring period each year, generally one or more weeks. This right is shared among several dozen purchasers who take turns using the same accommodation according to a schedule established in advance.
The Main Legal Structures
In France, time-share can take several distinct legal forms. The société d'attribution d'immeubles en jouissance à temps partagé (SAJTP) is the historical structure, created by Law No. 86-18 of January 6, 1986: the purchaser becomes a shareholder in a civil company that owns the property and, in return, receives a right of use for a specific period. A société civile immobilière can also be used, but provides a less protective framework because it does not fall under the specific 1986 regime. Finally, some contracts are based on a real right of use on a shared-time basis, a form closer to temporary ownership rights governed by the same legislation. These three forms coexist on the market, with different degrees of protection and complexity for the purchaser.
The Protective Legal Framework for the Purchaser
The 1986 Law and the European Directive
The time-share regime was specifically regulated in France by Law No. 86-18 of January 6, 1986, subsequently supplemented by the transposition of European Directive 2008/122/EC on the protection of consumers in respect of contracts relating to the use of time-share accommodation. These texts aim to limit the abuses observed during the 1980s and 1990s, a period when many consumers were subjected to aggressive sales practices, sometimes during promotional stays, without having clear information about their commitments.
Withdrawal Period and Pre-Contractual Information
The French Consumer Code now provides for a 14-calendar-day withdrawal period from the signing of the contract, during which the purchaser may withdraw without giving a reason or incurring a penalty. No payment, deposit or advance payment may be required before this period has expired. The seller is also required to provide a standardised pre-contractual information document, detailing in particular the total price, foreseeable annual charges, contract duration and exit arrangements. This legal framework protects the buyer at the time of signing, but does not in any way resolve the difficulties that may arise years later, particularly when the purchaser wants to resell or withdraw from the arrangement.
The Advantages Historically Put Forward
Lower-Cost Access to Ownership
The historical commercial argument for time-share is based on a lower entry price than purchasing full ownership: by paying only for one or two weeks of annual use, the purchaser gains access to high-end residences (seaside, mountain, tourist destinations) for an initial investment that is far lower than that of a conventional second home.
Shared Costs
Another commonly cited argument is the sharing of maintenance, management and renovation costs among all the co-owners in the schedule, which theoretically made it possible to benefit from a well-maintained property without bearing the fixed costs alone. This model could appear economically rational for occasional and regular use, without the management constraints of a fully owned property left unoccupied for much of the year.
Well-Documented Disadvantages and Pitfalls
A Resale Market That Is Virtually at a Standstill
This is the most problematic point and the one best documented by consumer associations: unlike conventional real estate, a time-share week has virtually no secondary market. Demand is very low, supply has historically been abundant, and many owners wishing to sell simply cannot do so. It is not uncommon to see advertisements offering a time-share week for a symbolic 1 euro, or even owners willing to pay someone to take over their shares and the associated charges.
Often Virtually Zero Resale Value
The actual resale value is generally completely out of proportion with the initial purchase price, sometimes several thousand or even tens of thousands of euros, a few years or decades earlier. This almost systematic depreciation is explained by the low liquidity of the market, the increase in supply and the gradual withdrawal of operators from the sector.
Recurring and Increasing Annual Charges
Condominium, maintenance and renovation charges are due every year, whether or not the owner uses their week, and tend to increase over time, particularly as the residence ages and requires major works. For owners who no longer use their week, these charges become a pure expense, with no corresponding use or income.
A Difficult Exit from the Arrangement
Numerous disputes recorded by consumer associations such as UFC-Que Choisir or CLCV, as well as reports to the DGCCRF, specifically concern the impossibility of exiting a time-share contract: heirs who find themselves involuntarily owning shares they do not want, unresponsive management companies, lengthy legal procedures, and sometimes companies offering paid "takeover" or "buyback" services that lead to no real solution. These situations are sufficiently common that caution is warranted before making any commitment.
Reselling or Exiting a Time-Share Contract
The Traditional Exit Routes
From a legal standpoint, exiting a time-share contract generally requires transferring one's shares (in the case of a SAJTP) or one's right of use to a third party, or having them bought back by the management structure when this is provided for in the contract. In practice, due to the lack of a buyer, these procedures may extend over several years without success.
Lengthy and Costly Procedures
Beyond the difficulty of finding a new owner, exiting the arrangement often involves notary or deed fees, and sometimes administrative fees charged by the management company, without any guarantee of success. Some owners eventually abandon their shares or stop paying the charges, which may lead to debt-recovery proceedings. Faced with these obstacles, legal or association-based assistance is often necessary to identify the best option depending on the legal structure concerned.
Why This Model Has Declined in France
Time-share experienced its golden age in the 1980s and 1990s, before declining significantly in France over the past two decades. Several factors explain this decline: the increase in disputes and the media coverage of resale difficulties have permanently damaged the image of the arrangement; the rise of seasonal rental platforms (such as Airbnb or Abritel) has provided a much more flexible alternative for enjoying holiday stays without a long-term commitment; and the development of managed tourist residences, with more flexible rental or investment arrangements, has replaced the traditional model. The sector's historical operators themselves have largely redirected their activities, leaving many current co-owners in a complex management situation, with an ageing property portfolio and limited exit prospects.
Alternatives for a Second-Home or Seasonal Rental Investment Project
Full Ownership
Becoming the full owner of a property remains the simplest and most liquid solution: the property can be freely used throughout the year, rented out, transferred or resold without depending on a shared schedule or a third-party management company. Before getting started, it is recommended to have a free property valuation carried out to accurately assess your budget and the market targeted.
Conventional Seasonal Rental
To enjoy regular holidays without the constraints of time-share, conventional seasonal rental from private individuals or through platforms remains a flexible option, with no long-term financial commitment or risk of depreciation of an asset that is difficult to resell.
Family SCI
For a project shared among several members of the same family, creating a family société civile immobilière (SCI) makes it possible to organise the ownership and use of a fully owned property, with governance rules chosen collectively, while retaining the property's asset value and the ability to transfer or resell it under much better conditions than a time-share share.
Whatever the project envisaged, it is strongly recommended to consult a local Capifrance property adviser for assistance in choosing the most suitable solution, and to consult our property listings to explore the available fully owned properties corresponding to your second-home or investment project.
Conclusion
Time-share remains a legally regulated arrangement that protects purchasers at the time of purchase, with a withdrawal period and mandatory pre-contractual information. However, the very real difficulties encountered by many owners when reselling or exiting the contract, combined with annual charges that can remain burdensome over time, explain the sharp decline of this model in France. For a second-home or seasonal rental investment project, full ownership, seasonal rental or a family SCI currently offer solutions that are generally safer, more flexible and easier to resell.
FAQ
Is Time-Share Still Legal in France?
Yes, time-share remains a legal arrangement, governed by the 1986 law and by the provisions of the Consumer Code resulting from the European directive on time-share. However, this does not guarantee ease of resale or preservation of the value of the initial investment.
Can You Withdraw After Signing a Time-Share Contract?
Yes, the law provides for a 14-calendar-day withdrawal period from the date of signing, without having to justify the decision or pay a penalty. No payment may legally be required before the end of this period.
Why Is It So Difficult to Resell a Time-Share Week?
Demand on the secondary market is very low compared with abundant supply, particularly because many owners are themselves seeking to withdraw from the arrangement. This situation causes resale values to fall, sometimes to the point of becoming virtually zero.
What Should You Do If You Have Inherited Time-Share Shares You Do Not Want?
It is recommended to contact the management company to find out the transfer arrangements provided for in the contract, and to seek assistance from a legal professional or a consumer association. Refusing an inheritance that includes time-share shares is also an option to consider with a notary, depending on the overall financial and asset situation.
What Are the Best Alternatives to Time-Share Today?
Purchasing a second home in full ownership, conventional seasonal rental without a long-term commitment, or creating a family SCI for a shared project are generally considered more liquid and safer solutions over the long term.
Author
Frédéric Rémy – Director of Sales Performance
A real estate professional with several years of experience within the Capifrance network, I would like to share essential advice with you to help you successfully complete your property project with our advisors.
