In today's current economic climate with many
homeowners losing their home to foreclosure, short sale or simply
"walking away" they are finding that they are burdened by their
timeshare vacation rental with their ever increasing assessments.
Many unscrupulous timeshare companies are refusing to take back their
timeshare and are blocking the sale or transfer of an unwanted
timeshare to third parties making timeshare not an investment but a
financial liability for the life of the timeshare owner.
There is now hope for those timeshare owners who wish to be free of their timeshare.
Because the travel and tourism is one of the most important industries
in the state of California account for about 100 billion dollars
annually, the legislature has enacted consumer protection statutes that
are designed to protect consumers from fraudulent and deceptive
timeshare tactics.
Known as the Vacation Ownership and Time- share Act of 2004, this
consumer protection statute that may be utilized by a timeshare owner
to regulates disclosures and representations made by timeshare salesman
as well as the content found in timeshare offering brochures. In
addition, it regulates the conduct of timeshare presentation as well as
the availability of timeshare to owners who are often times required to
compete for timeshare use with rental of their timeshare to the general
public.
The Act is quite extensive in its prohibitions of representations and
conduct in connection with a timeshare presentation. Some of the more
frequent violations of the Act, which can be found in California
Business and Professions Code 11245, are the following:
(1) Make any material misrepresentation that is false or misleading
in connection with any advertisement or promotion of a time-share plan.
(2) Make a prediction of any increases in the resale price or resale
value of the time-share interest.
(3) Materially misrepresent the size, nature, extent, qualities, or
characteristics of the offered time-share plan.
(4) Materially misrepresent the conditions under which a purchaser
may exchange the right to use accommodations in one location for the
right to use accommodations in another location.
(5) Materially misrepresent the current or future availability of a
resale or rental program offered by or on behalf of the developer.
(6) Materially misrepresent the nature or extent of any incidental benefit.
(7) Fail to deliver any item offered in connection with a promotion
to a prospective purchaser upon the conclusion of the sales
presentation,
(8) State that the purchase of a time-share interest constitutes a financial investment.
(9) Fail to clearly and conspicuously disclose, prior to the execution
of any purchase contract, the annual maintenance and association dues or
any separately billed taxes, when applicable.
(10) Fail to clearly disclose in writing any automatic charging or billing procedure.
In addition to the foregoing, the Act provides a formula which restricts
the rental of timeshare units to the general public and requires a one
"to" one purchaser to accommodation ratio to ensure that timeshare
owners can indeed have access to the timeshare that they purchased.
( California Business & Professions Code 11245 (b), 11250 )
Violators of the Vacation Ownership and Time share Act can be sued by
owners for damages or for injunctive or declaratory relief. Moreover,
the Act does not exclude other remedies provided by law, including
action under California's Unfair Competition Law.
So if I have a timeshare that you are no longer able to afford or simply want to sell it what can you do?
Call your time share company and see if they are willing to take back
their timeshare.
If they are not and its seems like you will be stuck with the timeshare
and its obligations to pay maintenance fees for life, you should consult
with a lawyer familiar with these laws.
In sum, you should not have to be saddled with timeshare fees forever.
