If you’re planning to purchase a timeshare, there are some things you need to know first before signing your name on the dotted line. While being a timeshare owner is great, some people enter into contracts without really understanding how timeshares work and their responsibilities as an owner. The result: They end up regretting their purchase or worse, face legal issues.
Potential Legal Matters Regarding Timeshares
Timeshare issues are governed by business, contract, and real estate laws, and usually involve the following:
- Unexpected foreclosure
- Timeshare fraud – This involves alleged timeshare resale brokers that offer to sell your timeshare for a costly upfront fee but are never heard from again after you send them money, explains a timeshare fraud attorney.
- Disputes between owners – For example, having the same schedule for timeshare occupancy.
- Giving away or transferring timeshare rights
- Overlapping state laws, such as when you own a timeshare in a different state than your primary residence
- Timeshare rescission or cancellation
Do note though that in the majority of cases, timeshare contracts are legal and binding once they’re signed. However, some companies that sell timeshares offer a return window that buyers could leverage for revoking or cancelling their purchase should they change their minds.
Resolving Timeshare Issues
If you encounter an issue with your timeshare, review your contract to see how it might be resolved. For instance, your contract might specify details about what would happen in case you default on your payment or if your timeshare was foreclosed. Otherwise, an issue might need to be taken to court to get a resolution. Usually, the court would order damage awards or some other remedy to compensate the non-breaching party.
Timeshares could involve overlapping and complex laws, so it’s in your best interest to reach out to a lawyer with ample experience in timeshare dealings. Your lawyer would inform you of all the legal remedies applicable to your case and represent you in court if necessary.