No matter what kind of timeshare you have or where you began your vacation ownership, it is controlled by many laws. In the United States, federal law is created by Congress and covers certain issues of constitutional and national importance. State laws cover almost everything else. Given these two systems, it is valid to ask, “What role do state and federal laws play in timeshare cancellation?”
The answer can depend on several points, not the least of which is what one means by the term “timeshare cancellation.” Rescission by timeshare buyers of a purchase contract is almost always a matter of state law. A legal case — for example, one brought against a salesperson who lied to you or used improper sales tactics at a timeshare sales presentation — would also be a matter of state law.
Federal law often takes a broader view, with agencies like the Federal Trade Commission (FTC) enforcing consumer protection laws by investigating and punishing companies that defraud, mislead, and exploit owners. Federal law also deals with wrongdoing that happens across state lines (like buying a timeshare over the phone, via an online meeting, or through the mail.
In this article, we will take a look at the legal systems at play in timeshares. Specifically, we’ll look at the differences between state and federal law, how you can use federal law in a timeshare exit, and what to do if your timeshare agreement is governed by law that is not as good as you would like.
The United States is governed by two major types of laws: federal and state. Federal law comes from the United States Constitution. It applies to all people in the country and is concerned with large-scale issues like travel, business, and crimes that occur over state lines.
State law, on the other hand, is limited to particular states. Under the Tenth Amendment to the U.S. Constitution, states have the power to make laws over things not mentioned in the Constitution, so long as those state laws don’t violate other parts of the Constitution. (For example, a state could not pass a law that makes slavery legal.) States make most laws regarding contracts, real property, foreclosure, disclaimer statements, and other issues that come up in timeshare ownership.
In the context of cancellation rights, this means that timeshare contracts are typically governed by state law, not federal law, since neither contract laws nor timeshare laws are discussed in the constitution.
For example, if you just bought a timeshare unit and want to cancel it within the rescission period (sometimes called a “cooling-off period”), you will find out if you can do that and how long you have by looking at state timeshare cancellation laws. Since each state is in charge of creating its own laws, the rules on timeshare cancellation will differ.
Nevada, for instance, gives you five calendar days to rescind your timeshare purchase agreement. California gives people seven calendar days, and Florida gives owners 10 calendar days to send a notice of cancellation.
Which state’s law applies will depend on where the contract was signed, where you live, and if the contract itself requires that a certain state’s law will be used. The answer may be more complex than you think.
While state law may also apply if your timeshare developer lied to you or did something worthy of being sued, you should also look to federal law for help.
Federal law may apply where there is interstate commerce — or things are sold across state lines. Therefore, while federal law won’t help you much if you are just trying to do a contractual cancellation, it might help if a timeshare developer fraudulently advertised its products to you.
Federal law can also help if a timeshare company stole something from you using a computer or telephone system. In those cases, you can either take legal action (e.g., file a lawsuit) or report the developer to an agency that enforces federal consumer rights laws.
Federal consumer protection laws are enforced by agencies like the FTC and the Consumer Financial Protection Bureau (CFPB). The FTC provides helpful resources regarding timeshare scams and also allows you to file a complaint against companies that might have violated federal laws.
The CFPB is the place to go if your timeshare company lent you money (as it does when you take out a timeshare mortgage) or if it signed you up for a credit card you didn’t want.
The amount of options might seem overwhelming at first. The agencies themselves can provide further information to guide you. Trusted experts like those at Centerstone Group can also give you free resources to help you decide the proper and most effective actions to take for your situation. They can also advise you on whether your situation requires legal advice or whether a regulatory complaint is the best option. (Every year, Centerstone Group helps its clients file thousands of these complaints.)
Even if the laws are more restrictive in your state or country, a timeshare exit company like Centerstone Group has multiple cancellation and exit options at its disposal. They can look at your situation and timeshare contract to determine your best way forward. For example, if your state has more restrictive laws about cancellation (or worse, no cancellation period at all), that just means you need to try a different strategy.
Centerstone Group sets itself apart from other timeshare exit companies by using this kind of adaptive approach. If a timeshare cancellation letter is not an option under your state’s law, we have a robust timeshare transfer program we can use to get you out of your contract using real estate transfers.
With our collective decades of experience in the industry, we can also negotiate and use our proprietary pressure campaign to get you the results you need. If your timeshare developer has made a misrepresentation or violated state or federal law, we can also help you get an outstanding lawyer or law firm at discounted legal rates.
You might be concerned, though, if neither state nor federal law applies because your timeshare is in Mexico. Rest easy, because Cornerstone Group understands the process and has ample experience getting timeshare owners out of contracts in Mexico.
While your facts may be unique, Centerstone Group has likely encountered them before. No matter what laws apply to your contract, we can help you find a good exit strategy.
Although not every timeshare exit needs a lawyer to be successful, it is still important to understand the law that applies to your contract as well as the jurisdictions that are applicable to your situation. To that end, you need an expert at your side to make sure that you are following the best path to free yourself from contracts, maintenance fees, and special assessments for good.
Centerstone Group has been that expert for thousands of people. As a business with an A+ rating by the Better Business Bureau (BBB) and a client rating of 4.79-out-of-5 stars, we have a proven track record of helping in any situation our clients have. Contact us today for a free consultation, so we can start working on the best way to help you.
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