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Timeshare Cancellation Laws

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The easiest way to get out of a timeshare is a legal cancellation within the cooling off period applicable for the state in which the purchase is made.

Click the applicable state below to see how you can cancel your own contract. If you are already outside of these legal cancellation periods, call Centerstone Group for your other option.

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A contract can be canceled within 15 days of receiving the public offering statement. However, if you get the public offering statement more than 15 days before signing a contract, you cannot cancel the purchase. (Alaska Stat. § 34.08.580(a).)

 

To cancel your timeshare purchase, you must:

  • hand-deliver notice of the cancellation to the seller, or
  • mail notice of the cancellation by prepaid United States mail to the seller or the seller’s agent for service of process. (Alaska Stat. § 34.08.580(b).)

The seller cannot charge you a cancellation penalty and must refund your payments promptly. (Alaska Stat. § 34.08.580(b).)

 

http://akleg.gov/

 

 

  1. PURCHASER’S RIGHT TO RESCIND:

 

Notwithstanding any other statements in Purchase Agreement, Purchaser(s) has the legal right to rescind the Agreement without penalty or obligation, or cause of any kind, by midnight on the tenth (10th) calendar day, or any longer period of time allowed in this agreement, following the day the Purchaser(s) executed the Purchase Agreement, by sending or delivering a written notice of rescission to the Seller: (notice delivery address of the Seller). Notice of written rescission is effective on the date the cancellation is sent. Purchaser(s) may execute all documents in advance.

 

https://azre.gov/sites/default/files/Dev/Forms/FormT-Timeshare_Disclosure_Report_Template.pdf

 

18-14-409. Mutual rights of cancellation.

 

(a)

(1) Before transfer of a time-share interest and no later than the date of the sales contract, the developer shall provide the intended purchaser with a copy of the public offering statement and any amendments and supplements to the statement.

(2) The contract is voidable by the purchaser until he or she has received the public offering statement.

(3) The contract is voidable by the purchaser for five (5) days after execution of the contract of sale.

(4) Cancellation is without penalty, and all payments made by the purchaser before cancellation shall be refunded within a reasonable time after receipt of the notice of cancellation under subsection (c) of this section.

(b) Up to five (5) days after execution of the contract of sale, the developer may cancel the contract of purchase without penalty to either party and shall return all payments made within a reasonable time.

(c) If either party elects to cancel a contract under subsection (a) or subsection (b) of this section, he or she may do so by hand-delivering the notice to the other party or by mailing the notice by regular mail to the other party or to his or her agent for service of process, which notice is considered given when deposited in the mail.

 

https://arec.arkansas.gov/wp-content/uploads/2020/05/2017-License-Law-and-2017-Regulation-Book-10-30-2017.pdf

 

 

RESCISSION RIGHTS

In accordance with the provisions of Section 11238 of the Business and Professions Code, a purchaser of a time-share interest, incidental benefit or any right under an exchange program has the right to cancel the purchase contract if person who has made an offer to purchase a time-share interest shall have the right to rescind any contract resulting from the acceptance of the offer within seven calendar days after the receipt of the public report or the execution of the purchase contract, whichever is later.

 

Rescission Rights Notice

To inform a person of his or her right to cancellation, the developer shall attach to the face page of every copy of a Subdivision Public Report given to a prospective purchaser the notice as set forth in Code

Section 11239. In addition, a “special note” describing these rescission rights is to be shown on every Public Report where the subdivision is a time-share plan. See form RE 615 for the language which is to

constitute the “special note.” The contract for the purchase of a time-share interest must also include immediately prior to the space

reserved for the purchaser’s signature, a disclosure, in conspicuous type, a notice of cancellation as prescribed in Code Section 11238(d)(7).

 

https://www.dre.ca.gov/files/pdf/timeshare_manual.pdf

 

 

Statute 6-1-703: Time shares and resale time shares – deceptive trade practices (1)   A person engages in a deceptive trade  practice  when,  in  the  course  of  the  person’s  business, vocation,  or  occupation,  the  person  engages  in  one  or  more  of  the  following  activities  in connection  with  the  advertisement  or  sale  of  a  time  share  or  the  provision  of  a  time  share  resale service: a.     Misrepresents: (I) The investment, resale, or rental value of any time share; (II)   The  conditions  under  which  a  purchaser  may  exchange  the  right  to  use accommodations  or  facilities  in  one  location  for  the  right  to  use  accommodations  or  facilities  in another location; or (III)    The  period  of  time  during  which  the  accommodations  or  facilities  contracted  for will be available to the purchaser;b.     Fails  to  allow  any  purchaser  a  right  to  rescind  the  sale  of  a  time  share  or  a  time  share resale service within five calendar days after the sale; c.         (I)Fails  to  provide  conspicuous  notice  on  the  contract  of  the  right  of  a  purchaser  of  a time  share  or  time  share  resale  service  to  rescind  the  sale  in  writing  either  by  electronic  means, mail, or hand delivery. (II)   For purposes of this section, notice of rescission is given: (A)  If by  mail, when postmarked; (B)  If by  electronic mail or other electronic means, when sent; or (C)  If by  hand delivery, when delivered to the seller’s place of business. (d)    Fails  to  refund  any  down  payment  or  deposit  made  pursuant  to  a  time  share  contract or  contract  for  time  share  resale  service  within  seven  days  after  the  seller  or  time  share  resale entity  receives  the  purchaser’s written  notice  of  rescission;  except  that,  if  the  purchaser’s  check has  not  cleared  at  the  time  notice  of  rescission  is  received,  the  person  has  seven  additional  days after receipt of funds from the purchaser’s cleared check to refund the down payment or deposit

 

https://leg.colorado.gov/sites/default/files/images/olls/crs2017-title-06.pdf

 

721.10 Cancellation.—

(1) A purchaser has the right to cancel the contract until midnight of the 10th calendar day following whichever of the following days occurs later:

(a) The execution date; or

(b) The day on which the purchaser received the last of all documents required to be provided to him or her, including the notice required by s. 721.07(2)(d)2., if applicable.

This right of cancellation may not be waived by any purchaser or by any other person on behalf of the purchaser. Furthermore, no closing may occur until the cancellation period of the timeshare purchaser has expired. Any attempt to obtain a waiver of the cancellation right of the timeshare purchaser, or to hold a closing prior to the expiration of the cancellation period, is unlawful and such closing is voidable at the option of the purchaser for a period of 1 year after the expiration of the cancellation period. However, nothing in this section precludes the execution of documents in advance of closing for delivery after expiration of the cancellation period.

(2) Any notice of cancellation shall be considered given on the date postmarked if mailed, or when transmitted from the place of origin if telegraphed, so long as the notice is actually received by the developer or escrow agent. If given by means of a writing transmitted other than by mail or telegraph, the notice of cancellation shall be considered given at the time of delivery at the place of business of the developer.

(3) In the event of a timely preclosing cancellation, the developer shall honor the right of any purchaser to cancel the contract which granted the timeshare purchaser rights in and to the plan. Upon such cancellation, the developer shall refund to the purchaser the total amount of all payments made by the purchaser under the contract, reduced by the proportion of any contract benefits the purchaser has actually received under the contract prior to the effective date of the cancellation, as required by s. 721.06. Such refund shall be made within 20 days of demand therefor by the purchaser or within 5 days after receipt of funds from the purchaser’s cleared check, whichever is later.

 

http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0721/0721.html

514E-8: Mutual right to cancel

 

Within seven calendar days after the execution of the contract to purchase an interest in a time share plan, or within seven calendar days after the purchaser’s receipt of a disclosure statement required by this chapter, whichever occurs later, either party may cancel the contract without penalty by mailing or delivering a notice of cancellation to the other party at an address specified on the contract.  The notice of cancellation shall be effective upon mailing or delivery to the other party at the address specified on the contract.

 

http://cca.hawaii.gov/pvl/files/2013/08/hrs_pvl_514e.pdf

Section 10:10: Cancellation of purchase contract

 

Any purchase contract entered into by a purchaser of a time share interest under this Act shall be voidable by the purchaser, without penalty, within 5 calendar days after the receipt of the public offering statement or the execution of the purchase contract, whichever is later. The purchase contractshall provide notice of the 5-day cancellation period, together with the name and mailing address to which any notice of cancellation shall be delivered.  Notice of cancellation shall be deemed timely if the notice is deposited with the United States Postal Service not later than midnight of the fifth calendar day.    Upon such cancellation, the developer or resale agent shall refund to the purchaser all payments made by the purchaser, less the amount of any benefits actually received pursuant to the purchase contract.  The refund shall be made within 20 calendar days after the receipt of the notice of cancellation, or receipt of funds from the purchaser’s cleared check, whichever occurs later.    If a purchaser elects to cancel a purchase contract pursuant to this Section, the purchaser may do so by hand delivering a written notice of cancellation or by mailing a notice of cancellation by certified mail, return receipt requested, to the developer or resale ent, as applicable, at an address set forth in the purchase contract. 

https://www.ilga.gov/legislation/publicacts/pubact91/acts/91-0585.html

RS 9:1131.10.1: Contracts for purchase of timeshare interests

No developer of a timeshare interest shall fail to utilize and furnish each purchaser a fully completed copy of a purchase contract pertaining to the sale, which contract shall include the following information:

(1)  The actual date the purchase contract is executed by each party.

(2)  The names and addresses of the developer, any owner of the underlying real estate, and the timeshare plan.

(3)  The total financial obligation of the purchaser, including the initial purchase price and any additional charges to which the purchaser may be subject, including but not limited to financing, reservation, maintenance, management, and recreation charges.

(4)  The estimated date of completion of construction of each accommodation in which the timeshare interest is being purchased that is not completed at the time the purchase contract, unless that information is contained in a public offering statement that incorporates the contract by reference, is executed by the developer and purchaser.

(5)  A description of the nature and duration of the timeshare interest being sold, including whether any interest in real property is being conveyed and the specific number of years constituting the term of the timeshare plan.

(6)  Immediately prior to the space reserved in the purchase contract for the signature of the purchaser, in conspicuous type, substantially the following statements:

YOU MAY CANCEL THIS PURCHASE CONTRACT WITHOUT ANY PENALTY OR OBLIGATION WITHIN SEVEN DAYS FROM THE DATE YOU SIGN THIS PURCHASE CONTRACT, AND UNTIL SEVEN DAYS AFTER YOU RECEIVE THE PUBLIC OFFERING STATEMENT, WHICHEVER IS LATER. IF YOU DECIDE TO CANCEL THIS PURCHASE CONTRACT, YOU MUST NOTIFY THE DEVELOPER IN WRITING OF YOUR INTENT TO CANCEL.  YOUR NOTICE OF CANCELLATION SHALL BE EFFECTIVE UPON THE DATE SENT AND SHALL BE SENT TO …(NAME OF DEVELOPER)… AT …(ADDRESS OF DEVELOPER)… ANY ATTEMPT TO OBTAIN A WAIVER OF YOUR CANCELLATION RIGHT IS UNLAWFUL.

(7)  A statement that, in the event the purchaser cancels the purchase contract during a seven-day cancellation period, the developer will refund to the purchaser the total amount of all payments made by the purchaser under the purchase contract, reduced by the proportion of any contract benefits the purchaser has actually received under the purchase contract prior to the effective date of cancellation.  The statement shall further provide that the refund will be made within thirty days after receipt of notice of cancellation or within five days after receipt of funds from the purchaser’s cleared check, whichever is later.

(8)  Unless the developer is, at the time of offering the interest, the owner of the timeshare property free and clear of all liens and encumbrances, a statement that the developer is not the sole owner of the timeshare property and facilities without liens or encumbrances, which statement shall include:

(a)  The names and addresses of all persons or entities having an ownership interest or other interest in the timeshare property; and

(b)  The actual interest of the developer in the timeshare property.

(9)  If the contract is for the sale or transfer of a timeshare interest in which the timeshare property is subject to a lease, the following statement within the text in conspicuous type: THIS TIMESHARE INTEREST IS SUBJECT TO A LEASE (OR SUBLEASE).  A copy of the executed lease shall be attached as an exhibit.

 

http://legis.la.gov/legis/Law.aspx?d=106599

  • 11A-114. Right of cancellation.

(a)  In general.- A time-share purchaser shall have the right to cancel the sales contract until midnight of the tenth calendar day following whichever occurs latest: 

(1) The contract date; 

(2) The day on which the time-share purchaser received the last of all documents required to be provided as part of the public offering statement; or 

(3) The time-share unit meets all building requirements and is ready for occupancy. However, if the developer obtains a payment and performance bond from a surety to insure completion of the project as represented in the public offering statement and contract of sale, and files the bond with the Commission, this item does not apply. 

(b)  Right cannot be waived.- The right of cancellation cannot be waived by the purchaser or by any other person. No closing shall occur until the purchaser’s cancellation period has expired. Any false representation made by or on behalf of a developer that a purchaser may not exercise the right of cancellation, or any attempt to obtain a waiver of the purchaser’s cancellation rights, or a closing prior to the expiration of the cancellation period, shall be unlawful and such closing shall be voidable at the option of the purchaser for a period of 1 year after the expiration of the cancellation period. Nothing in this section shall preclude the execution of documents in advance of closing for delivery after expiration of the cancellation period. 

(c)  When notice considered given.- Any notice of cancellation given by mail or telegraphic communication shall be considered given on the date postmarked, if mailed, or when transmitted from the place of origin, if telegraphed, so long as the notice is actually received by the developer. If notice is given by means of a writing transmitted other than by mail or telegraph, it shall be considered given at the time of receipt at the principal place of business of the developer. 

(d)  Rights upon cancellation.- In the event of a timely cancellation, or in the event the time-share plan is one in which time-share licenses are sold and at any time the time-share project is no longer available to such licensees, the developer shall honor the rights of any purchaser to cancel the sales contract. Upon such cancellation, the developer shall refund to the purchaser all payments made which exceed the proportionate amount of benefits made available under the plan, using the number of years of the proposed plan as the base. Such refund shall be made within 20 business days of demand or within 5 days after receipt of funds from the purchaser’s cleared check, whichever is later. 

[1984, ch. 579; 1987, chs. 379, 569.] 

https://law.justia.com/codes/maryland/2010/real-property/title-11a/114/

Title 33, Chapter 10-A, Section 592: Requirements of Time shares

 

  1. Specific disclosures.  No time share may be conveyed by a developer or conveyed for the first time unless, prior to that conveyance or the execution of an agreement for the purchase, whichever is earlier, the purchaser is provided, at no cost to the purchaser, with a written statement containing the following information, all of which shall be current to a point not more than 60 days prior to the date of delivery to the purchaser.  
    1. The front cover or first page must contain only:  
      1. The name and principal address of the developer and of the project and the location of the time-share property; and
      2. The following statements in conspicuous type.  
    2. THIS CONTAINS IMPORTANT MATTERS TO BE CONSIDERED IN ACQUIRING A TIME SHARE. STATE OF MAINE LAW REQUIRES THAT THESE DISCLOSURES BE MADE BUT NO STATE AGENCY OR OFFICIAL HAS REVIEWED THE INFORMATION CONTAINED IN THIS BOOKLET.
    3. YOU MAY CANCEL THE PURCHASE TRANSACTION WITHIN TEN CALENDAR DAYS FOLLOWING THE DATE OF EXECUTION OF THE CONTRACT OR THE RECEIPT OF A CURRENT WRITTEN STATEMENT, WHICHEVER IS LATER.  
    4. THE STATEMENTS CONTAINED INSIDE ARE ONLY SUMMARY IN NATURE. IF YOU ARE THINKING OF BUYING A UNIT, YOU SHOULD TALK TO YOUR ATTORNEY AND LOOK AT ALL EXHIBITS, INCLUDING THE DECLARATION, PROJECT INSTRUMENT FLOOR PLAN, PLOT PLAN, BYLAWS AND CONTRACTS.  
    5. YOU SHOULD ASK YOUR ATTORNEY AND THE DEVELOPER TO TELL YOU WHAT WILL HAPPEN TO YOUR DEPOSIT, INTEREST IN THE UNIT, OR COSTS AND EXPENSES IF THE DEVELOPER OR OWNER IS DECLARED BANKRUPT. OBTAIN THE ANSWER FROM THE DEVELOPER IN WRITING.   [PL 1997, c. 83, §1 (AMD).]
      1. The following pages shall contain, in the following order:
        1. A general description of the time-share property and the time-share units, including, without limitation, the number and types of units in the time-share property and in any project of which it is a part and the schedule of commencement and completion of construction of all buildings, units, amenities and improvements;
        2. The maximum number of units that may become part of the time-share property, a statement of the maximum number of time shares that may be created or that there is no maximum, and the proportion of units the developer intends to rent or market in blocks of units to investors;
  • Copies and a brief narrative description of the significant features of the project instrument and time-share instrument and any documents referred to therein, other than the survey and floor plans; the bylaws; rules; copies of any contracts and leases to be signed by purchasers at closing; and a brief narrative description of any contracts or leases, the term of which will or may extend beyond the period of developer control of the association;  
  1. Any current balance sheet and a projected budget for the association, if there is an association, for one year after the date of the first transfer to a purchaser, and thereafter the current budget, a statement of who prepared the budget and a statement of the budgetary assumptions concerning occupancy and inflation factors. The budget shall include, without limitation:  
    1. A statement of the amount, or a statement that there is no amount, included in the budget as a reserve for repairs and replacement;  
    2. A statement of any other reserves;
    3. The projected common expense assessment by category of expenditures for the association; and
    4. The projected monthly common expense assessment for each type of unit;  
    5. Any services not reflected in the budget that the developer provides, or expenses that he pays, and that he expects may become at any subsequent time a common expense of the association and the projected common expense assessment attributable to each of those services or expenses for the association and for each type of unit and each time-share estate;
    6. Any initial or special fee due from the purchaser at or before closing, together with a description of the purpose of the fee and method of its calculation;
    7. A description and a statement of the effect on the time-share owners of any liens, defects or encumbrances on or affecting the title to the project and each time-share unit;  
    8. A description of any financing offered by the developer;  
    9. The terms and significant limitations of any warranties provided by the developer, including statutory warranties and limitations on the enforcement thereof or on damages;  
    10. A statement that:  
      1. Within 10 calendar days after receipt of the current written statement or execution of a contract, whichever is later, a purchaser may cancel any conveyance or contract for purchase of a unit from the developer; and  
      2. If the purchaser elects to cancel, the purchaser may do so by hand delivering a notice of cancellation or by mailing the notice by prepaid United States mail to the developer. The cancellation must be without penalty and any deposit made by the purchaser must be promptly refunded in its entirety;  
    11. A statement of any unsatisfied judgments against the association, developer or managing entity, the status of any pending suits to which the association, developer or managing entity is a party and the status of any pending suits material to the property of which the developer has actual knowledge;  
    12. A statement that any deposit made in connection with the purchase of a unit will be returned to the purchaser if the purchaser cancels the contract within 10 calendar days after receipt of the written statement or contract;  
    13. Any restraints on transfer of time shares or portions thereof;  
    14. A description of the insurance coverage provided for the benefit of the time-share owners;  
    15. Any current or expected fees or charges to be paid by time-share owners for the use of the common elements and other facilities related to the project;
    16. All unusual and material circumstances, features and characteristics of the project and the units;  
    17. The projected common expense assessment for each time share and whether those assessments may vary seasonally;
    18. The extent to which the time-share owners of a unit are jointly and severally liable for the payment of real estate taxes and all assessments and other charges levied against that unit; and
    19. The extent to which a time-share unit may become subject to a tax or other lien arising out of claims against other time-share owners of the same time-share unit.

https://legislature.maine.gov/statutes/33/title33sec592.html

You may cancel a timeshare contract within three business days after you get the public offering statement unless you receive the public offering statement more than three days before the date you sign the contract. If you get the public offering statement more than three business days before signing a contract, you cannot cancel the contract for failure timely to receive the public offering statement. (Mass. Gen. Laws ch. 183B, § 38.)

To cancel the contract, you must:

  • hand-deliver written notice to the seller (or to the agent for service of process)
  • mail notice to the seller (or to the agent for service of process) by registered mail, return receipt requested
  • send a telegram, or
  • use a courier service with guaranteed next-day delivery. (Mass. Gen. Laws ch. 183B, § 41(b).)
  • The notice is effective on the date postmarked or when transmitted from the place of origin. (Mass. Gen. Laws ch. 183B, § 41(b).)

 

Other Protections for Timeshare Purchasers in Massachusetts

 

Massachusetts law permits a court to refuse to enforce the timeshare contract if it finds the agreement to be unconscionable. Also, a developer that offers an exchange program among timeshare owners must give certain disclosures to program participants.

Unconscionable Timeshare Contracts in Massachusetts

Even if the cancellation period has expired, you might be able to void a timeshare contract, or part of it, if the contract or a clause in the agreement is unreasonable. Massachusetts law states that if a court finds that the timeshare contract (or a clause in the agreement) was unconscionable at the time the contract was made, the court may:

  • refuse to enforce the contract
  • enforce the remainder of the contract without the unconscionable clause, or
  • limit the application of any such unconscionable clause to avoid an unconscionable result. (Mass. Gen. Laws ch. 183B, § 5(a).)
  • To show that a contract is unconscionable, you may present evidence such as:
  • the commercial setting of the negotiations
  • whether one party knowingly took advantage of the other party’s inability to reasonably protect their interests because of a physical or mental infirmity, illiteracy, or inability to understand the language of the agreement or similar factors
  • the effect and purpose of the contract or clause, and
  • if a sale, any gross disparity, at the time of contracting, between the amount charged for the timeshare and the timeshare’s value compared to similar timeshares, but this comparison won’t by itself render the contract unconscionable. (Mass. Gen. Laws ch. 183B, § 5(b).)

https://malegislature.gov/Laws/GeneralLaws/PartII/TitleI/Chapter183B

 

 

**I could not find anything about specific timeshare recission.  This is the statute regarding cancellation of contracts in general**

Chapter 445, Act 276, Section 445.931: Cancellation of certain contracts by buyer. Section 1

 

  • For a sale of goods, services, or memberships whose value equals or exceeds $500.00, if the buyer has been offered anything of more than $25.00 in value in exchange for attending a sales promotion for those goods, services, or memberships, in addition to any other right to revoke an offer, a buyer has the right to cancel the sale and receive a complete refund until midnight of the third business day after the day on which the buyer signed a contract or agreement to purchase.
  • A contract or agreement to purchase which is subject to cancellation under the provisions of subsection (1) shall prominently contain the following notice, on its face, set in boldface at least 4 points larger than the type of the body of the document. The seller shall enter on the blanks the date the buyer signs the written agreement, the last date for mailing notice of cancellation, and the seller’s name and address.

Notice to Purchaser

You are entitled to cancel this agreement without penalty or obligation for any reason within 3 business days from the date you signed this agreement. Any payments made by you shall be returned within 10 business days following receipt by the seller of your cancellation notice. You may mail or deliver a written notice to the seller. If mailed, it must be postmarked before midnight of the third business day after you sign the agreement. Deliver or mail the notice to:

Name of Seller__________________________

Date Signed __________________

Address of Seller__________________________

Last Cancellation Date__________________________

 

  • Cancellation occurs when the buyer mails or delivers to the seller written notification of cancellation. If mailed, a cancellation notice is given on the date the notice is postmarked.
  • A written notice given by the buyer for cancellation need not take a particular form and is sufficient if it indicates by any form of written expression the intention of the buyer not to be bound by the sale.
  • A buyer shall not cancel a sale if the buyer requests the seller to provide goods, services, or memberships without delay because of an emergency, and any of the following apply:
    1. The seller in good faith makes a substantial beginning of performance of the contract before the buyer gives notice of cancellation.
    2. The buyer furnishes the seller with a separate dated and signed personal statement in the buyer’s handwriting describing the situation requiring immediate remedy and expressly acknowledging and waiving the right to cancel the sale within 3 business days.
    3. The goods, services, or memberships cannot be returned to the seller in substantially as good condition as when received by the buyer
  • This act does not limit or in any way affect a buyer’s right to cancel a sale under any other provision of law.
  • If a gift is given to the prospective buyer as an inducement to attend a sales promotion, regardless of intent, the prospective buyer shall have the right to keep the gift without obligation whether or not a contract is canceled.
  • For purposes of this section “business day” means Monday through Friday and shall not include Saturday, Sunday, or the following business holidays: New Year’s day; Martin Luther King, Jr. day; Memorial day; July 4; Labor day; Columbus day; Veterans’ day; Thanksgiving day; and Christmas day.

 

http://www.legislature.mi.gov/(S(xroq0qq0ow5teebrgxhuch1d))/mileg.aspx?page=getObject&objectName=mcl-445-931

 

 

MS Code of Rules 30-1601-8.9

 

In order to protect the purchaser’s right to refund during the rescission period and during any period in which construction of the timeshare property is not complete and available for occupancy by purchasers, the developer shall provide financial assurances as required by this section.

  1. A developer of a timeshare plan shall deposit into an escrow account in an acceptable escrow depository all funds that are received in Mississippi during the purchaser’s rescission period. An acceptable escrow depository includes banks, trust companies, saving and loans associations, real estate broker trust accounts at such an institution, title insurers, and underwritten title companies. The handling of these funds shall be in accordance with an executed escrow agreement between an escrow agreement between an escrow agent and the developer. Funds will be handled to assure the following:

(1) Funds may be disbursed to the developer by the escrow agent from the escrow account or from the broker trust account only after expiration of the purchaser’s rescission period and in accordance with the purchase contract, subject to paragraph 2.

(2) If a prospective purchaser properly cancels the purchase contract following expiration of the cancellation period pursuant to its terms, the funds shall be paid to the prospective purchaser or paid to the developer if the prospective purchaser’s funds have been previously refunded by the developer.

  1. If a developer contracts to sell a timeshare interest and the construction of the accommodation in which the timeshare interest being conveyed is located has not been completed, the developer, upon expiration of the rescission period, shall continue to maintain in an escrow account all funds received by or on behalf of the developer from the prospective purchaser under his or her purchase contract. The Commission shall determine the types of documentation which shall be required for evidence of completion, including, but not limited to, a certificate of occupancy, a certificate of substantial completion, or an inspection by the State Fire Marshal or designee or an equivalent public safety inspection by the appropriate agency in the applicable jurisdiction. Unless the developer submits an alternative financial assurance in accordance with paragraph 3., funds shall not be released from escrow until a certificate of occupancy, or its equivalent, has been obtained and the rescission period has passed, and the timeshare interest can be transferred free and clear of blanket encumbrances, including mechanics’ liens. Funds to be released from escrow shall be released as follows:

(1) If a prospective purchaser properly cancels the purchase contract pursuant to its terms, the funds shall be paid to the prospective purchaser or paid to the developer if the developer has previously refunded the prospective purchaser’s funds. (See “1 boo above)

(2) If a prospective purchaser defaults in the performance of the prospective purchaser’s obligations under the purchase contract, the funds shall be paid to the developer.

(3) If the funds of a prospective purchaser have not been previously disbursed in accordance with the provisions of this paragraph 2., they may be disbursed to the developer by the escrow agent upon the issuance of acceptable evidence of completion of construction and closing.

  1. In lieu of the provisions in paragraphs 1 and 2, the Commission may accept from the developer a surety bond, escrow bond, irrevocable letter of credit, or other financial assurance or arrangement acceptable to the Commission. Any acceptable financial assurances shall be in an amount equal to or in excess of the lesser of

(1) the funds that would otherwise be place in escrow, or

(2) in an amount equal to the cost to complete the incomplete property in which the timeshare interest is located. However, in no event shall the amount be less that the amount of funds that would otherwise be placed in escrow pursuant to subparagraph a. of paragraph 1.

  1. The developer shall provide escrow account or broker trust account information to the Commission and shall execute in writing an authorization consenting to an audit or examination of the account by the Commission. The developer shall make documents related to the escrow or trust account or escrow obligation available to the Commission upon request. The escrow agent or broker shall maintain any disputed funds in the escrow account until either of the following occurs:

(1) Receipt of written direction agreed to by signature of all parties.

(2) Deposit of the funds with a court of competent jurisdiction in which a civil action regarding the funds has been filed

  1. Excluding any encumbrance placed against the purchaser’s timeshare interest securing the purchaser’s payment of purchase money financing for the purchase, the developer shall not be entitled to the release of any funds escrowed under this section J. with respect to each timeshare interest and any other property or rights to property appurtenant to the timeshare interest, including any amenities represented to the purchaser as being part of the timeshare plan, until the developer has provided satisfactory evidence to the Commission of one of the following:

(1) The timeshare Interest together with any other property or rights to property appurtenant to the timeshare interest, including any amenities represented to the purchaser as being part of the timeshare plan, are free and clear of any of the claims of the developer, any owner of the underlying fee, a mortgagee, judgment creditor, or other lien holder, or any other person having an interest in or lien or encumbrance against the timeshare interest or appurtenant property or property rights.

(2) The developer, any owner of the underlying fee, a mortgagee, judgment creditor, or other lien holder, or any other person having an interest in or lien or encumbrance against the timeshare interest or appurtenant property or property rights, including any amenities represented to the purchaser as being part of the timeshare plan, has recorded a subordination and notice to creditors document in the appropriate public records of the jurisdiction in which the timeshare interest is located. The subordination document shall expressly and effectively provide that the interest holder’s right, lien or encumbrance shall not adversely affect, and shall be subordinate to, the rights of the owners of the timeshare interests in the timeshare plan regardless of the date of purchase.

(3) The developer, any owner of the underlying fee, a mortgagee, judgment creditor, or other lien holder, or any other person having an interest in or lien or encumbrance against the timeshare interest or appurtenant property or property rights, including any amenities represented to the purchaser as being part of the timeshare plan, has transferred the subject accommodations, amenities, or all use rights in the amenities to a nonprofit organization or owners’ association to be held for the use and benefit of the owners of the timeshare plan, which organization or owners association shall act as a fiduciary to the purchasers, and the developer has transferred control of the entity to the owners or does not exercise its voting rights in the entity with respect to the subject accommodations or amenities: Prior to the transfer, any lien or other encumbrance against the accommodation or facility shall be made subject to a subordination and notice to creditors, instrument pursuant to subparagraph b. or be free and clear of all liens and encumbrances.

(4) Alternative arrangements have been made which are adequate to protect the rights of the purchasers of the timeshare interests and approved by the Commission.

  1. Nothing in this section shall prevent a developer from accessing any escrow funds if the developer has complied with paragraph 3 of this section.
  2. The developer shall notify the Commission of the extent to which an accommodation may become subject to a tax or other lien arising out of claims against other purchasers in the same timeshare plan.
  3. Developers, sellers, escrow agents, brokers and their employees and agents have a fiduciary duty to purchasers with respect to funds required to be deposited under these rules. Any Mississippi broker or salesperson who fails to comply with rules concerning the establishment of an escrow or broker trust account, deposits of funds, and property into escrow or withdrawal there from, shall be in violation of the Mississippi Real Estate Brokers Act of 1954, as amended, and the Rules and Regulations of the Commission. The failure to establish an escrow or trust account or to place funds therein as required under these rules is prima facie evidence of an intentional and purposeful violation.

 

https://sos.ms.gov/ACProposed/00019448b.pdf

 

 

Under state law, timeshares are defined as merchandise and fall within the guidelines of Missouri’s Merchandising Practices Act, Chapter 407, Missouri Revised Statutes.

Use of any deception, fraud, false pretense, false promise, misrepresentation, unfair practice or concealment of fact by a person in connection with the sale of timeshares is subject to civil and criminal penalties that may be brought by the Attorney General.

Major provisions of a state law protecting buyers are:

  • A five-day right of recission. If a consumer signs a contract to buy a timeshare and then changes his mind, he has five days to cancel. The cancellation must be in writing, and cancellation is effective when the letter is postmarked. According to state law, the seller must give the buyer an 18-point, boldfaceprinted notice of the right to cancel at the time of purchase.
  • Follow through on promotional offers. The name of the business entity and all timeshare operations involved in the promotion must be included in promotional literature. This material also must contain the deadline by which all prizes are to be awarded, the odds of winning each prize and the manufacturer’s suggested retail price for each prize.
  • Delivery of promised gifts. When the seller uses free offers or other promotions when soliciting, the seller must deliver any promised gifts or an acceptable substitute gift or cash in an amount equal to the retail value of the gift offered within 10 days of when promised. The seller also must make available to the public a list of names and addresses of all winners. If the seller fails to provide the buyer with a promised gift, the buyer can sue.
  • Explanation of timeshare exchange plans. Exchange plans usually involve trading a vacation at one timeshare facility for a vacation in another location. Limitations, restrictions or priorities regarding exchange programs must be outlined for the buyer. For example, the timeshare operator must tell a buyer if a Lake of the Ozarks vacation can be exchanged for an Alaska vacation only during December.

Complaints from Customers

 

Complaints range from disappointment with a prize and high-pressure sales tactics to outright deception and fraud. Typical complaints include:

  • Not informing consumers they must listen to a lengthy sales pitch before receiving their “prizes.”
  • Misrepresenting the facility’s physical condition.
  • Misrepresenting the facility’s market value.
  • Misrepresenting the facility’s resale or exchange potential.
  • Making oral promises that were omitted from the written contract.
  • Including fees and obligations in the contract that never were mentioned orally.

https://ago.mo.gov/civil-division/consumer/consumer-topics/vacation-timeshares#:~:text=If%20a%20consumer%20signs%20a,when%20the%20letter%20is%20postmarked.

 

 

NRS 119A.410: Right to cancel contract of sale

     1.  The purchaser of a time share may cancel, by written notice, the contract of sale until midnight of the fifth calendar day following the date of execution of the contract. The contract of sale must include a statement of this right.

      2.  The right of cancellation may not be waived. Any attempt by the developer to obtain a waiver results in a contract which is voidable by the purchaser.

      3.  The notice of cancellation may be delivered personally to the developer, sent by certified mail, return receipt requested, or sent by express, priority or recognized overnight delivery service, with proof of service, to the business address of the developer.

      4.  The developer shall, within 20 days after receipt of the notice of cancellation, return all payments made by the purchaser.

 

https://www.leg.state.nv.us/nrs/nrs-119a.html#NRS119ASec410

 

 

A timeshare contract can be canceled within five days from the later of:

 

  • the date of the contract, or
  • the date you receive the public offering statement. (N.H. Rev. Stat. Ann § 356-A:4(II), § 356-B:50(II).)

 

To cancel your timeshare purchase, give written notice of your intent to cancel to the developer by:

 

  • hand-delivery, or
  • United States mail, return receipt requested. (N.H. Rev. Stat. Ann § 356-A:4(II), § 356-B:50(II).)

 

If you choose to mail the notice of cancellation, you must also provide the developer with telephonic notice of cancellation within the five-day cancellation period. (N.H. Rev. Stat. Ann § 356-A:4(II), § 356-B:50(II).)

 

Other Protections for Timeshare Purchasers in New Hampshire

 

New Hampshire law protects timeshare buyers by requiring timeshare sellers to use an escrow account in timeshare transactions. When you purchase a timeshare in New Hampshire, the timeshare developer must put any money you pay in connection with the purchase into an escrow account until the closing or you cancel the purchase. (N.H. Rev. Stat. Ann § 356-A:9-a, § 356-B:57.) The point of the escrow requirement is to protect your right to a refund if you cancel the sales agreement during the cancellation period.

https://www.doj.nh.gov/consumer/sourcebook/right-of-recission.htm

 

 

 

Notice to purchasers pursuant to New Jersey Law, you have the right to cancel your contract or agreement without cause by sending or delivering written notice of cancellation to the developer or his agent by midnight of the seventh (7th) calendar day on which such contract or agreement was executed.  All monies paid will be promptly refunded.

 

If the contract documents and/or local law grants a rescission period of greater than 7 days, then the longer period will apply.

 

Even though the developer offers or recommends lender financing, alternate sources of financing may be available.  Purchasers should ascertain for themselves what method or sources of financing best suits their individual needs.

 

This public offering statement is intended as a summary of certain minimum information, and is not intended as an allinclusive explanation of the development.  It is based upon information furnished by the developer, and does not constitute an endorsement or recommendation of the merits or value of the offering by the New Jersey Real Estate Commission.

 

Prospective purchasers should not rely upon any oral representations as being correct or binding upon the developer.

 

Prospective purchasers should review all documents, exhibits, contracts and materials applicable to this purchase, and are encouraged to consult with legal counsel before entering into a contract to purchase the interest offered herein.

 

https://www.state.nj.us/dobi/division_rec/subdivided/forms/timesharepos_nonspec.pdf

 

 

 

Under Section 24.3 of New York timeshare laws, a purchaser has the right to cancel a timeshare contract within seven business days on the date that the contract was engaged. This right to cancel cannot be waived. Under this timeshare law, the seller must refund all payments within 30 days.

 

https://ag.ny.gov/sites/default/files/13_nycrr_24.3.pdf

Article 4, Chapter 93A-45: Purchaser’s right to cancel (a)   A developer shall, before transfer of a time share and no later than the date of any contract of sale, provide a prospective purchaser with a copy of a public offering statement containing the information required by G.S. 93A-44. The contract of sale is voidable by the purchaser for five days after the execution of the contract. The contract shall conspicuously disclose the purchaser’s right to cancel under this subsection and how that right may be exercised. The purchaser may not waive this right of cancellation. Any oral or written declaration or instrument that purports to waive this right of cancellation is void. (b)    A purchaser may elect to cancel within the time period set out in subsection (a) by hand delivering or by mailing notice to the developer or the time share salesperson. Cancellation under this section is without penalty and upon receipt of the notice all payments made prior to cancellation must be refunded immediately.(c)    Any payments received by a time share developer or time share salesperson in connection with the sale of the time share shall be immediately deposited by the developer or salesperson in a trust or escrow account in a federally insured depository institution or a trust institution authorized to do business in this State and shall remain in such account for 10 days or cancellation by the purchaser, whichever occurs first. Payments held in such trust or escrow accounts shall be deemed to belong to the purchaser and not the developer. In lieu of such escrow requirements, the Commission shall have the authority to accept, in its discretion, alternative financial assurances adequate to protect the purchaser’s interest during the contract cancellation period, including but not limited to a surety bond, corporate bond, cash deposit or irrevocable letter of credit in an amount equal to the escrow requirements. (d)   If a developer fails to provide a purchaser to whom a time share is transferred with the statement as required by subsection (a), the purchaser, in addition to any rights to damages or other relief, is entitled to receive from the developer an amount equal to ten percent (10%) of the sales price of the time share not to exceed three thousand dollars ($3,000). A receipt signed by the purchaser stating that the purchaser has received the statement required by subsection (a) is prima facie evidence of delivery of the statement.

 

https://www.ncleg.net/EnactedLegislation/Statutes/PDF/ByArticle/Chapter_93A/Article_4.pdf

 

The timeshare cancelation right is a period of three days. The purchaser must submit a written notice to cancel the timeshare contract to the seller by mail within this time period. All funds must be returned to the purchaser shortly thereafter.

 

https://www.ohioattorneygeneral.gov/Business/Services-for-Business/Business-Guide/Cancellation-Rights-of-Consumers

 

 

 

A contract can be canceled within five calendar days from the date you sign the first written offer or contract to purchase. (Or. Rev. Stat. § 94.836(1).) However, if the developer doesn’t provide an address to you for cancellation purposes, the cancellation period doesn’t begin until the developer gives you the address. (Or. Rev. Stat. § 94.836(2).)

 

To cancel, you must give written notice to the developer at the developer’s address. (Or. Rev. Stat. § 94.836(2).) The notice of cancellation doesn’t need to be in a particular format. The notice is sufficient if it indicates your intention to cancel the contract. (Or. Rev. Stat. § 94.836(3).)

 

If you give you notice of cancellation by mail, you must send it by certified mail, return receipt requested. The cancellation is effective on the date that the notice is deposited with the United States Postal Service, properly addressed and postage prepaid. (Or. Rev. Stat. § 94.836(4).)

 

Other Protections for Timeshare Purchasers in Oregon

 

Oregon law makes it unlawful for a timeshare developer or salesperson to do any of the following when selling timeshares:

 

  • employ any device, scheme, or artifice to defraud
  • make any untrue statement of a material fact
  • fail to state a material fact necessary to make a statement clear
  • publish false or misleading statements in any prospectus, circular, advertisement, document, pamphlet, leaflet or other literature, or to leave out a statement that then makes the document misleading
  • issue an advertisement or written document without naming the person responsible for publishing it, or
  • make any statement or publish any advertisement that the timeshare plan has been approved or endorsed by the Oregon Real Estate Commissioner unless the statement is made together with a public report issued by the commissioner. (Or. Rev. Stat. § 94.940.)

 

Escrow Account Required in Timeshare Purchases

 

A timeshare developer must put any money you pay in connection with a timeshare purchase into an escrow account with an escrow agent. (Or. Rev. Stat. § 94.873(1).) It will release the funds:

 

  • if you cancel the agreement
  • if you or the developer defaults in performing an obligation under the sales agreement
  • if you or the developer properly terminate a sales agreement, or
  • after escrow closes for the sale of the timeshare. (Or. Rev. Stat. § 94.873(3).)
  • The purpose of the escrow account is to protect your right to a refund.

Timeshare’s Public Report

 

In Oregon, the Real Estate Commissioner may examine a timeshare plan to be offered for sale and make a public report of the findings. The timeshare developer must give a copy of the public report to the prospective purchaser before signing the contract. (Or. Rev. Stat. § 94.829.)

Timeshare Advertising Regulations in Oregon

Oregon law prohibits a timeshare developer, or its agent or an employee, from putting false or misleading statements, pictures, or sketches in advertisements, radio broadcasts, or telecasts. (Or. Rev. Stat. § 94.945.)

https://oregon.public.law/statutes/ors_94.836

 

 

Section 609: Right to cancel purchase of timeshare and campground membership

 

  • A purchaser shall have the right to cancel the purchase of a time share or a campground membership until midnight of the fifth day following the date on which the purchaser executed the purchase contract.
  • The right of cancellation shall be set forth conspicuously in boldface type of at least ten point in size immediately above the signature of the purchaser on the purchase contract in substantially the following form: “You, the purchaser, may cancel this purchase at any time prior to midnight of the fifth day following the date of this transaction. If you desire to cancel, you are required to notify the seller, in writing, at (address). Such notice shall be given by certified return receipt mail or by any other bona fide means of delivery which provides you with a receipt. Such notice shall be effective upon being postmarked by the United States Postal Service or upon deposit of the notice with any bona fide means of delivery which provides you with a receipt.” This clause is to be separately initialed by the purchaser.  Copies of all documents which place an obligation upon a purchaser shall be given to the purchaser upon execution by the purchaser.
  • Notice of cancellation shall be given by certified return receipt mail or by any other bona fide means of delivery, provided that the purchaser obtains a receipt. A notice of cancellation given by a bona fide means of delivery shall be effective on the date postmarked or on the date of deposit of the notice with any bona fide means of delivery.
  • Within ten business days after the receipt of a notice of cancellation, all payments made under the purchase contract shall be refunded to the purchaser and an acknowledgment that the contract is void shall be sent to the purchaser. In the event of a cancellation pursuant to this section, any promotional prizes, gifts and premiums issued to the purchaser by the seller shall remain the property of the purchaser.
  • The right of cancellation shall not be waivable by any purchaser.
  • A purchaser who exercises the right of cancellation shall not be liable for any damages as a result of the exercise of that right.
  • In addition to constituting a violation of this act, a violation of this section by any individual, corporation, partnership, association or other entity shall also be deemed a violation of the act of December 17, 1968 (P.L.1224, No.387), known as the “Unfair Trade Practices and Consumer Protection Law.” The Attorney General is authorized to enforce this section. Any actions brought by the Attorney General to enforce this section shall be in addition to any actions which the commission may bring under this act.
  • The right of the purchaser to bring an action to enforce this section shall be independent of any rights of action which this section confers on the Attorney General and the commission.
  • Nothing in this act shall affect any rights conferred upon the purchaser by 68 Pa.C.S. Pt. II Subpt. B (relating to condominiums).
  • This act shall be applicable to time shares and campground memberships which are located within this Commonwealth and to time shares and campground memberships which are located outside this Commonwealth but for which the purchase contract was executed by the purchaser within this Commonwealth.

 

https://www.legis.state.pa.us/cfdocs/legis/LI/uconsCheck.cfm?txtType=HTM&yr=1980&sessInd=0&smthLwInd=0&act=9&chpt=6&sctn=9&subsctn=0


Title 34, Chapter 41, Article IV, Section 34-41-4.06: Purchaser’s right to cancel  1)      A purchaser has the right to cancel the contract until midnight of the fifth (5th) business day (specifically excluding therefrom Saturdays, Sundays and legal holidays) following whichever of the following days occurs later:i)       The execution date; orii)      The day on which the purchaser received the last of all documents required to be provided to him or her.
This right of cancellation may not be waived by any purchaser or by any other person on behalf of the purchaser. Furthermore, no closing may occur until the cancellation period of the time-share purchaser has expired. Any attempt to obtain a waiver of the cancellation right of the time-share purchaser, or to hold a closing prior to the expiration of the cancellation period, is unlawful and such closing is voidable at the option of the purchaser for a period of one (1) year after the expiration of the cancellation period.b)      Any notice of cancellation shall be considered given on the date postmarked if mailed, or when transmitted from the place or origin if telegraphed, so long as the notice is actually received by the developer or escrow agent. If given by means of a writing transmitted other than by mail or telegraph, the notice of cancellation shall be considered given at the time of delivery at the place of business of the developer.c)      In the event of a timely preclosing cancellation, the developer shall honor the right of any purchaser to cancel the contract which granted the time-share purchaser rights in and to the plan. Upon such cancellation, the developer shall refund to the purchaser the total amount of all payments made by the purchaser under the contract, reduced by the proportion of any contract benefits the purchaser has actually received under the contract prior to the effective date of the cancellation. Such refund shall be made within twenty (20) days of demand therefore by the purchaser or within five (5) days after receipt of funds from the purchaser’s cleared check, whichever is later.

 

http://webserver.rilin.state.ri.us/Statutes/TITLE34/34-41/34-41-4.06.htm

 

 

 

South Carolina law makes it illegal for a timeshare seller to use fraud, misrepresentation, or to fail to disclose material facts to induce a timeshare sale. (S.C. Code Ann. § 27-32-110). South Carolina timeshare law also prohibits a developer or salesperson from using false or misleading advertisements in order to sell timeshares. (S.C. Code Ann. § 27-32-190).

 

SECTION 27-32-30. Materials to be kept among business records of seller of plans

 

It is a violation of this chapter for a person offering vacation time sharing plans for sale to the public to fail to keep among its business records a:

 

  1. copy of each item required to be submitted to the commission pursuant to Section 27-32-30;
  2. copy of the contract from each sale of the vacation time sharing plan, which contract must be retained for at least three years after parties to the vacation time sharing plan have completely performed all of their obligations under it; and
  3. list of all employees, and their last known mailing addresses, which must include all current employees and all previous employees whose employment was terminated within the preceding three years.

 

Right to Cancel/How to Cancel a Timeshare in South Carolina

 

SECTION 27-32-40. Furnishing copy of contract to purchaser; terms thereof.

 

  • It is a violation of this chapter for the seller of a vacation time sharing plan to fail to utilize and furnish the purchaser a fully completed copy of a contract pertaining to the sale at the time of its execution. The contract must include the:

 

  • actual date the contract is executed by all parties;
  • name and address of the seller
  • total financial obligation of the purchaser, including the initial purchase price and additional charges to which the purchaser may be subject;
  • specific term of the contract; and
  • (a) following statement in immediate proximity to the space reserved in the contract for the signature of the purchaser and in bold type:

 

“YOU MAY CANCEL THIS CONTRACT WITHOUT PENALTY OR OBLIGATION WITHIN FIVE DAYS AFTER THE DATE YOU SIGN THIS CONTRACT, NOT INCLUDING SUNDAY IF THAT IS THE FIFTH DAY, OR THE DATE YOU RECEIVE THE DISCLOSURE STATEMENT PURSUANT TO SECTION 27-32-100, WHICHEVER OCCURS LATER. IF YOU DECIDE TO CANCEL, YOU MUST NOTIFY THE SELLER IN WRITING OF YOUR INTENT TO CANCEL BY SENDING NOTICE BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, OR BY ANOTHER VERIFIABLE MEANS, TO (NAME OF SELLER) AT (SELLER’S ADDRESS).”

 

 

 

 

(b) in the case of a vacation time sharing lease plan the following statement also must be included:

 

“YOU ALSO MAY CANCEL THIS CONTRACT AT ANY TIME IN CASE THE ACCOMMODATIONS OR FACILITIES PROVIDED IN THE CONTRACT OR COMPARABLE ACCOMMODATIONS OR FACILITIES ARE NO LONGER AVAILABLE”

 

  • Notice of cancellation pursuant to this section is considered given on the date postmarked if mailed, or when transmitted from the place of origin if telegraphed, so long as the notice is actually received by the seller. If given by means of a writing transmitted other than by mail or telegraph, the notice is considered given at the time of delivery at the seller’s address as identified on the contract

SECTION 27-32-70. Misrepresentation of right to cancel

 

It is a violation of this chapter for a seller of vacation time sharing plans, or his assignees, to misrepresent in any manner the purchaser’s right to cancel provided by this chapter. (S.C. Code Ann. § 27-32-70)

 

SECTION 27.32.100. Public offering statements; contests.

A timeshare seller must provide to the prospective purchaser a written public offering statement regarding the purchaser’s rights and obligations associated with the purchase of an interest in that vacation timesharing plan. The purchaser must receive the statement before signing a purchase contract and the statement must include, among other things:

 

  • the name and address of the seller
  • a brief description of the interest being offered in the vacation timesharing plan
  • the name of a person with the right to alter, amend, or add charges which the purchaser must pay (and the terms and conditions under which those charges may be imposed)
  • a description of provisions to protect the purchaser’s interest from loss due to foreclosure on an underlying financial obligation of the vacation timesharing plan, and
  • a statement similar to the following: “You should purchase a timesharing interest as a vacation experience and for your personal use and enjoyment. You should not purchase a timesharing interest as an investment or for profit upon its rental or resale.” (S.C. Code Ann. § 27-32-100).

 

SECTION 27-32-110. Prohibited practices

 

It is a violation of this chapter for a seller of vacation time sharing plans to:

 

  • use a promotional device including, but not limited to, sweepstakes, lodging certificates, gift awards, premiums, or discounts, without disclosing fully that the promotional device is used for the purpose of soliciting the sale of vacation time sharing plans;
  • use a promotional device as described in item (1) to obtain the names and addresses of prospective purchasers without fully and prominently disclosing that names and addresses are acquired for the purpose of soliciting the sale of the vacation time sharing plans;
  • misrepresent the amount of time or period of time the accommodations and facilities are available to the purchaser;
  • misrepresent or deceptively represent the location of the offered accommodations and facilities;
  • misrepresent the size, nature, extent, qualities, or characteristics of the offered accommodations and facilities;
  • misrepresent the nature or extent of services incident to the accommodations and facilities;
  • make misleading or deceptive representations with respect to the contents of the contract or the purchaser’s rights, privileges, or benefits under it;
  • fail to honor and comply with all provisions of the contract with the purchaser;
  • misrepresent the conditions under which a purchaser may exchange his rights to an accommodation in one location for rights to an accommodation in another location;
  • include in a contract a provision purporting to waive the right or benefit provided for purchasers pursuant to this chapter, or seek or solicit such a waiver during the effective period of these rules; and
  • do any other act of fraud, misrepresentation, or failure to make a disclosure of a material fact.

 

https://www.scstatehouse.gov/code/t27c032.php

 

 

Section 20:69:12:21: Mutual right to cancel contract

 

A developer or purchaser may cancel a contract by giving the other party written notice within seven calendar days after execution of the contract or after the purchaser’s receipt of a disclosure statement, whichever occurs later.

The purchaser is entitled to a refund of all sums paid within 30 days after notice of cancellation if all materials received on the date of sale are returned to a specified address of the seller or within 60 days if all sales materials are not returned.

A developer or agent shall furnish each purchaser at the time the contract for purchase of a membership is signed the following cancellation notice prepared exactly as follows:

NOTICE TO BUYER: YOU OR THE DEVELOPER MAY CANCEL THIS TRANSACTION WITHIN SEVEN (7) CALENDAR DAYS AFTER THE EXECUTION OF THE CONTRACT OR AFTER YOUR RECEIPT OF THE DISCLOSURE STATEMENT, WHICHEVER OCCURS LATER. YOU ARE ENTITLED TO A REFUND OF ALL SUMS YOU PAID WITHIN 30 DAYS AFTER NOTICE OF CANCELLATION WHEN ALL MATERIALS RECEIVED ON THE DATE OF SALE ARE RETURNED TO THE ADDRESS STATED BELOW OR WITHIN 60 DAYS IF ALL SALES MATERIALS ARE NOT RETURNED. TO CANCEL THIS TRANSACTION, MAIL OR DELIVER A SIGNED AND DATED WRITTEN CANCELLATION NOTICE TO:

(Insert name and address of developer)

https://casetext.com/regulation/south-dakota-administrative-rules/title-20-public-safety/article-2069-real-estate-brokers-and-salespersons/chapter-206912-time-share-estates/section-20691221-mutual-right-to-cancel-contract

 

 

Tenn. Code Ann 66-32-114: Mutual Rights of Cancellation

 

(a) Before transfer of a time-share interval and no later than the date of any sales contract, the developer shall provide the intended transferee with a copy of the public offering statement and any amendments and supplements thereto. The contract is voidable by the purchaser until the purchaser has received the public offering statement. The contract is also voidable by the purchaser for ten (10) days from the date of the signing of the contract by the purchaser if the purchaser shall have made an on-site inspection of the time-share project or any component site prior to the signing of the contract, and if the purchaser did not make an on-site inspection of the time-share project or any component site prior to signing the contract, for fifteen (15) days thereafter. Cancellation is without penalty, and all payments made by the purchaser before cancellation must be refunded within thirty (30) days after receipt of the notice of cancellation as provided in subsection (c).

(b) During the applicable rescission period, the developer may cancel the contract of purchase without penalty to either party. The developer shall return all payments due, the purchaser shall return all material received in good condition, reasonable wear and tear excepted. If such materials are not returned, the developer may deduct the cost of the same and return the balance to the purchaser.

(c) If either party elects to cancel a contract pursuant to subsection (a) or (b), that party may do so by hand delivering notice thereof to the other party within the designated period for voiding such contract or by mailing notice thereof by prepaid United States mail, postmarked anytime within the designated period for voiding such contract, to the other party or to such party’s agent for service of process. The rescission rights set forth in subsections (a) and (b) may not be waived by either the purchaser or developer.

 

https://www.tncourts.gov/Tennessee%20Code

 

 

You have the right to cancel a timeshare contract so long as you do it before the sixth day after the latter of:

  • the date you sign and receive a copy of the purchase contract, or
  • when you receive the required timeshare disclosure statement. (Tex. Prop. Code Ann. § 221.041.)

The right to cancel cannot be waived. If your contract contains a waiver of this right, the contract is voidable. (Tex. Prop. Code Ann. § 221.041.)

The developer must provide a timeshare disclosure statement to you before you sign the timeshare agreement. The timeshare developer must also get you to sign an acknowledgment that you received the timeshare disclosure statement. (Tex. Prop. Code Ann. § 221.032.)

The timeshare disclosure statement must include, among other things:

  • the type of timeshare plan offered
  • a description of the duration and operation of the timeshare plan
  • a description of the existing or proposed accommodations
  • a description of any existing or proposed amenities of the timeshare plan
  • a description of the method by which you will be able to schedule your use of the timeshare
  • a description of the method and timing for performing maintenance of the timeshare property
  • the projected common expense liability, and
  • copies of the declaration, bylaws, and articles of incorporation. (Tex. Prop. Code Ann. § 221.032.)

How to Cancel a Texas Timeshare Contract

  • hand-deliver a notice of cancellation to the developer
  • mail notice by prepaid United States mail to the developer or to the developer’s agent for service of process, or
  • overnight your cancellation notice by common carrier delivery service to the developer or the developer’s agent for service of process. (Tex. Prop. Code Ann. § 221.042.)

 

https://statutes.capitol.texas.gov/Docs/PR/htm/PR.221.htm

 

 

57-19-12 Purchaser’s right to cancel.

(1)

(a) An agreement to purchase an interest in a development may be cancelled, at the option of the purchaser, if:

(i) the purchaser delivers a written notice of cancellation to the developer at the developer’s business address by:

(A) hand; or

(B) certified mail, return receipt requested, or a delivery service that provides proof of delivery;

and

(ii) the notice is delivered or postmarked not later than midnight of the fifth business day after the day on which the agreement is signed.

(b) In computing the number of business days for purposes of this section, the day on which the agreement was signed is not included.

(c) Within 30 days after the day on which the developer receives a timely notice of cancellation,

the developer shall refund any money or other consideration paid by the purchaser.

(2) Every agreement to purchase an interest in a development that is subject to this chapter shall include the following statement in at least 10-point bold upper-case type, immediately preceding the space for the purchaser’s signature:

 

“PURCHASER’S RIGHT TO CANCEL: YOU MAY CANCEL THIS AGREEMENT

WITHOUT ANY CANCELLATION FEE OR OTHER PENALTY BY HAND DELIVERING

OR SENDING BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, OR A DELIVERY

SERVICE THAT PROVIDES PROOF OF DELIVERY, WRITTEN NOTICE OF CANCELLATION

TO: (NAME AND ADDRESS OF DEVELOPER). THE NOTICE MUST BE DELIVERED OR

POSTMARKED BY MIDNIGHT OF THE FIFTH BUSINESS DAY FOLLOWING THE DAY ON

WHICH THE AGREEMENT IS SIGNED. IN COMPUTING THE NUMBER OF BUSINESS

DAYS, THE DAY ON WHICH THE CONTRACT IS SIGNED IS NOT INCLUDED.”

 

Amended by Chapter 255, 2016 General Session

 

https://le.utah.gov/xcode/Title57/Chapter19/C57-19_1800010118000101.pdf

  • 55.1-2221. Purchaser’s rights of cancellation

 

  1. A purchaser shall have the right to cancel the contract until midnight of the seventh calendar day following the execution of such contract. If the seventh calendar day falls on a Sunday or legal holiday, then the right to cancel the contract shall expire on the day immediately following that Sunday or legal holiday. Cancellation shall be without penalty, and all payments made by the purchaser before cancellation shall be refunded within 45 days after receipt of the notice of cancellation.

 

  1. If the purchaser elects to cancel a contract pursuant to subsection A, he shall do so only (i) by hand-delivering the notice to the developer at its principal office or at the project or (ii) by mailing the notice by certified United States mail, return receipt requested, to the developer or its agent designated in the contract. Any such notice sent by certified mail shall be effective on the date postmarked.

 

  1. If, because of the occurrence of a material change, the public offering statement is amended between the time of contracting to purchase a time-share and the time of settlement, the developer shall provide the amended public offering statement to the purchaser and the right of cancellation shall renew from the date of delivery of such amended public offering statement. This subsection shall not apply if the public offering statement is amended by the developer because of a change that is not material or to disclose any change that is an aspect or result of the orderly development of the time-share project in accordance with the project instrument.

 

  1. The right to cancel the contract as provided by this section shall not be waivable by the time-share purchaser and any provision in the contract or time-share documents indicating a waiver shall be void.

 

  1. A statement of the purchaser’s right of cancellation as set forth in subsections A and B shall appear in the contract above the purchaser’s signature line. Such statement shall appear in type no smaller than any other provisions of the contract, and the caption “PURCHASER’S NONWAIVABLE RIGHT TO CANCEL” shall appear immediately preceding it in conspicuous, boldface type.

 

https://law.lis.virginia.gov/vacodepopularnames/the-virginia-real-estate-time-share-act/

 

 

 

  • Under RCW 64.36.150 timeshare law in Washington permits a purchaser to have up to seven days for timeshare cancellation of the contract after it is signed. However, if the purchaser does not receive the legal disclosure statement, they may cancel a timeshare contract up to seven days after the document is received.

     

    Other Protections for Timeshare Purchasers in Washington

     

    Washington law protects timeshare buyers by requiring most timeshare sellers to register with the state and prohibiting deceptive practices and false statements in timeshare sales. Timeshare sellers sometimes offer gifts or prizes to get you to attend a sales presentation. Washington law requires such sellers to actually give you the gift or prize if you attend a presentation.

     

    Timeshare Sales Law in Washington

     

    In Washington, any individual offering timeshares must be registered with the state as a timeshare salesperson unless the timeshare offering is exempt from registration or the timeshare salesperson is licensed as a real estate broker or salesperson. (Wash. Rev. Code § 64.36.070.)

     

    Washington law allows for disciplinary action against a timeshare salesperson if the salesperson has engaged in dishonest or unethical practices in the timeshare business. (Wash. Rev. Code § 64.36.090.)

     

    Consumer Protections in Washington Timeshare Sales

     

    Washington law makes it unlawful (a class C felony) for any person in connection with the offer, sale, or lease of any timeshare in the state:

     

    • to make any untrue or misleading statement of a material fact
    • to omit a material fact
    • to employ any device, scheme, or artifice to defraud, and
    • to engage in any act, practice, or course of business that operates or would operate as a fraud or deceit upon any person. (Wash. Rev. Code § 64.36.210.)

     

    https://app.leg.wa.gov/rcw/default.aspx?cite=64.36&full=true

  • Chapter 36, Article 9, Section 36-9-5: Contracts for purchase of time-share periods. 

    No seller of a time-sharing plan shall fail to utilize, and furnish each purchaser of such plan a fully completed copy of, a contract pertaining to such sale, which contract shall include the following information:

    1. The actual date the contract is executed by all parties;
    2. The names and addresses of the seller, the developer and the time-sharing plan;
    3. The total financial obligation of the purchaser, including the initial purchase price and any additional charges to which the purchaser may be subject, such as reservation, maintenance, management and recreation charges: Provided, That those costs which cannot be specified exactly shall be estimated and the purchaser shall be notified that said costs are subject to change;
    4. The estimated date of availability of each accommodation or facility which is not completed at the time the contract is executed by the seller and purchaser;
    5. A description of the nature and duration of the time-share period being sold, including whether any interest in real property is being conveyed and the specific number of years or months constituting the term of the contract;
    6. Immediately prior to the space reserved in the contract for the signature of the purchaser, in boldfaced and conspicuous type which shall be larger than the type in the remaining text of the contract, substantially the following statements:

    “YOU MAY CANCEL THIS CONTRACT WITHOUT ANY PENALTY OR OBLIGATION WITHIN TEN DAYS FROM THE DATE YOU SIGN THIS CONTRACT, AND UNTIL TEN DAYS AFTER YOU RECEIVE THE PUBLIC OFFERING STATEMENT.

    IF YOU DECIDE TO CANCEL THIS CONTRACT, YOU MUST NOTIFY THE SELLER IN WRITING OF YOUR INTENT TO CANCEL. YOUR NOTICE OF CANCELLATION SHALL BE EFFECTIVE UPON THE DATE SENT AND SHALL BE SENT TO (Name of Seller) AT (Address of Seller) . NO PURCHASER SHOULD RELY UPON REPRESENTATIONS OTHER THAN THOSE INCLUDED IN THIS CONTRACT.”

    If no interest in real property is being conveyed, the contract shall also contain the following statement:

    “YOU MAY ALSO CANCEL THIS CONTRACT AT ANY TIME AFTER THE ACCOMMODATIONS OR FACILITIES ARE NO LONGER AVAILABLE AS PROVIDED IN THIS CONTRACT”;

    1. A statement that oral representations cannot be relied upon and that the seller makes no representations other than those contained in the contract and the public offering statement;
    2. A statement that, in the event the purchaser cancels the contract during a ten-day cancellation period, the developer shall refund to the purchaser all payments made under the contract within twenty days after receipt of notice of cancellation;
    3. If no fee interest in real property is being conveyed, a statement that, in the event of any cancellation by the purchaser after the ten-day cancellation periods, the refund shall be the total amount of all payments made by the purchaser under the contract reduced by the proportion of any contract benefits the purchaser actually has received or has had the right to receive under the contract during the time preceding the date when the cancellation becomes effective; and
    4. If the seller is to transfer a fee interest in real property to the purchaser, the seller shall furnish a contract for sale to the purchaser at least ten days before the date of closing.

    http://www.wvlegislature.gov/wvcode/code.cfm?chap=36&art=9

  • 707.47: Purchaser’s Right to Cancel

    (1)  Provision of statement. A person required to deliver a time-share disclosure statement under s. 707.41 (2) shall, before transfer of a time share and no later than the date of any contract for the purchase of a time share, provide a prospective purchaser with a copy of the time-share disclosure statement and all amendments and supplements to the statement.

    (2)  Right to cancel. If delivery of a time-share disclosure statement is required under s. 707.41 (2), the purchaser may cancel a contract for the purchase of a time share until midnight of the 5th business day after whichever of the following is later:

    (a) The date that the contract is executed.

    (b) The date on which the purchaser receives the last of the documents required to be provided to the purchaser under sub. (1).

    (3)  Activity before cancellation period expires. No title may be recorded, deed delivered or deposit released until the cancellation period under sub. (2) has expired. Nothing in this subsection or sub. (4) precludes the execution of documents before the cancellation period expires, for delivery after the cancellation period expires.

    (4)  Waiver prohibited. The purchaser or any person on behalf of the purchaser may not waive the right to cancel under sub. (2).

    (5)  Notice of cancellation. If a purchaser elects to cancel a contract under sub. (2), the purchaser may do so by personally-delivering notice of the cancellation to the seller or by mailing the notice to the developer or to the developer’s agent for service of process. If mailed, any notice of cancellation shall be considered given on the date that the notice is postmarked.

    (6)  Refund.

    (a) Cancellation under sub. (2) shall be without penalty, and, except as provided in par. (b), all payments made by the purchaser before cancellation shall be refunded within 20 days after receipt of the notice of cancellation or within 5 days after receipt of funds from the purchaser’s cleared check, whichever is later.

    (b) If the purchaser has used or occupied the time-share property for more than 12 hours before cancellation, the funds to be returned to the purchaser may be reduced by a reasonable charge to cover the length of stay plus the cost for damages, if any, to the time-share property directly attributable to the purchaser’s use or occupancy of the time share property.

     

    https://docs.legis.wisconsin.gov/statutes/statutes/707/iv/47

  • You have five business days to cancel a timeshare contract after you’ve signed it and this right to cancel can’t be waived.

    To cancel the contract, notify the developer in writing. It’s also a good idea to send a cancellation notification by email, as well as in person, if possible. Be sure to:

     

    • follow the instructions provided in the contract on how to cancel
    • deliver the cancellation within the rescission period, and
    • keep proof of the delivery of the cancellation notice, such as receipts, video/audio recordings of your attempt to cancel, etc.

     

    If the developer stalls or refuses to give you a refund, you can file a formal complaint against the company with PROFECO. 

     

     

     

    • 1253. Cancellation rights of purchasers

    (1) A purchaser shall have the right to cancel his purchase contract until midnight of the seventh calendar day following the date upon which the purchaser executed such purchase contract or received the timeshare or vacation club permit, whichever occurs later. Purchaser shall also have the right to cancel his purchase contract after the rescission period has expired if the developer has not completed the accommodations which are the object of the purchase contract or of the timeshare or vacation club right which is the object thereof within the term set forth in § 1254b of this title. The following notice of the purchaser’s right of cancellation shall be set forth in conspicuous type in the immediate proximity of the place for the purchaser’s signature in the purchase contract:

    YOU MAY CANCEL THIS PURCHASE CONTRACT AND RECEIVE A REFUND OF ANY MONIES PAID TO THE SELLER, LESS THE VALUE OF ANY BENEFITS RECEIVED PURSUANT TO THIS PURCHASE CONTRACT, WITHIN SEVEN DAYS FOLLOWING THE DATE UPON WHICH YOU EXECUTED THIS PURCHASE CONTRACT OR RECEIVED THE TIMESHARE [OR VACATION CLUB] PERMIT, WHICHEVER OCCURRED LATER. SHOULD YOU DECIDE TO CANCEL THIS CONTRACT FOR ANY REASON, YOU MUST PROVIDE WRITTEN NOTICE OF YOUR DECISION TO [NAME OF SELLER] AT [SELLER’S ADDRESS] BY FIRST CLASS MAIL POSTMARKED PRIOR TO MIDNIGHT OF THE SEVEN (7TH) CALENDAR DAY AFTER YOU SIGNED THIS PURCHASE CONTRACT OR RECEIVED THE TIMESHARE [OR VACATION CLUB] PERMIT, WHICHEVER OCCURRED LATER.

    The purchaser’s right of cancellation, as provided in this subsection shall not be subject to waiver by the purchaser, and any provision of the purchase contract or any other timeshare or vacation club document purporting to constitute such a waiver shall he deemed null and void.

    Any notice of cancellation given by mail, postage prepaid, shall be effective on the date postmarked. Any written notice of cancellation delivered other than by mail shall be effective at the time of its delivery at the place of business of the seller designated in the form of notice of cancellation.

    (2) It shall be a violation of this chapter for a developer to misrepresent in any manner a purchaser’s right to cancel his purchase contract or to fail or refuse to refund any and all payments made by the purchaser of a timeshare or vacation club right or accommodation and return any negotiable instruments (other than checks) executed by the purchaser as partial consideration for his purchase, less the value of any benefits received by the purchaser pursuant to his purchase contract, within ten (10) days following the developer’s receipt of the purchaser’s written notice of cancellation.

    https://casetext.com/statute/laws-of-puerto-rico/title-thirty-one-civil-code/subtitle-2-property-ownership-and-its-modifications/part-ii-a-timeshare/chapter-147-puerto-rico-timeshare-and-vacation-club-act/subchapter-iii-cancellation-deposit-escrow-requirements/1253-cancellation-rights-of-purchasers

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