Article 7 of the Saudi Timesharing in Tourist Real Estate Units Law

The value of a timesharing contract is often paid in installments or through financing. This article deals with what happens to the financing if the buyer backs out of the contract.

Under Article 1, credit is a form of financial facility. The article applies if the value of the contract is covered in whole or in part by credit:

• Granted by the seller himself to the buyer, or
• Granted to the buyer by a third party under a credit agreement between that third party and the seller.

If the buyer withdraws from the contract or cancels it under paragraph (1) of Article 5, this counts as cancellation of the credit agreement, with no obligation or liability on the buyer. The Implementing Regulations set the provisions regulating this.

Withdrawal or cancellation under paragraph (1) of Article 5 includes: withdrawal without cause within 10 days of signing, cancellation within 3 months if the contract does not include the information specified in paragraph (1) of Article 3, and withdrawal within the 10 days following the three months if that information was not provided.

This article complements Article 6, which bars requiring an advance payment before the end of the withdrawal or cancellation period, and Article 8, which makes void the buyer's waiver to the seller of any of his rights guaranteed by the Law. Anyone with financing linked to a timesharing contract may consult a lawyer specialized in banking and finance.