Is it easy to find misrepresentations?
There are so many laws and regulations that govern the development and sale of timeshare interests that it is difficult to comply with all of them. In addition, there is often exaggeration in describing benefits and omission of material considerations when making the sale.
Why do most timeshare sales fail to comply with some consumer protection statutes?
A significant omission in most timeshare sales is compliance with consumer protection laws that apply to the sale of goods and services. Because most developers sell timeshares using recorded deeds, they think they are exempt from such laws. However, significant features of a timeshare interest are the goods –the furnishings of the units and other personal property that provides comfort and utility to the land and buildings – and the services – reservations, housekeeping, repairs and general management – that make a timeshare much more care-free than sole ownership. These statutes often contain a right of rescission that is ongoing if they weren’t complied with at point of sale.
Why are there always omissions of material disclosures in the sale of deeded timeshares?
Sellers of deeded timeshares universally fail to disclose:
- ancillary probate if the buyer dies a resident of another state,
- a higher cost to the association to foreclose against defaulted members,
- exposure of the individual members to liability for what happens at the project they are deeded into, and
- higher cost and difficulty for the association if it must clear title to a unit.