October 7, 2022
Many of us still love the timeshare industry, but are concerned by the volume of complaints, lawsuits, arbitration cases, and Attorneys General investigations in which timeshare buyers describe deceptive marketing, sales and lending practices. We are grateful to Kiplinger’s and author H. Dennis Beaver, Esq., for joining our consumer awareness campaign by publishing our timeshare buyers Do’s and Don’ts.
By Sheilah Brust, TARDA Board President
Kiplinger's Personal Finance is an American personal finance magazine published since 1947! It offers advice on managing money and achieving financial security, saving, investing, planning for retirement, paying for college, and major purchases like automobiles and homes (or a timeshare). Wikipedia
Timeshare contracts are perpetual, have little to no secondary market, and are financed at 12% to 19.99%. If you learn too late that you experienced deceptive acts, you may find yourself stuck, and as this article explains, debt collection can turn ugly. Attorney and AARP staff writer Dennis Beaver, Esq. has written several articles about timeshares and the need to do due diligence before buying one.
Best Way to Exit Your Timeshare - Never Buy One in the First Place
By H. Dennis Beaver, Esq.
The complete article: https://www.kiplinger.com/real-estate/best-way-to-exit-your-timeshare-never-buy-one-in-the-first-place
TARDA’s Dos and Don’ts
The final step in closing a timeshare sale is the signing session. Since 2017, these have routinely been recorded. It is critical to state any questions or promises made that influenced your decision to purchase on the record. If your questions are not raised on the recording, your silence will later be used against you. “Why didn’t you raise these issues when we recorded the closing?” Being told what to say or not say on the recording is a Red Flag.
TARDA’s Dos and Don’ts
A few do’s:
Do buy a timeshare from the resale market instead of directly from the developer – it will save you a fortune. For example, a $20,000 Hilton Grand Vacations timeshare on the resale market is priced resale at around $1,500 to $2,000. Restrictions that may apply are typically outweighed by the savings.
Do your timeshare math. Take the purchase price, including finance charges and yearly maintenance fees, and amortize the cost over your expected travel lifetime. Spending $30,000 for a vacation plan at age 70, as opposed to at age 45, may not be prudent. Heirs should be notified that there is no obligation to inherit the timeshare, but they must disclaim the inheritance within a period of time. Check with an estate attorney.
A few don’ts:
Don’t buy the same day as the presentation. Sales agents prey on emotion, and guilt, to force a decision. “Do you love your wife and kids? Well, then, don’t you feel you owe them quality time? Think of the joy vacations bring, that’s what I am offering!”
Don’t rely on statements made by timeshare agents or anyone connected to the sale of a timeshare. When your complaint begins with, “The sales agent said…” you will be directed to the fine print in the contract that states, “I did not rely on oral representations to make my purchase.”
The final step in closing a timeshare sale is the signing session. Since 2017, these have routinely been recorded. It is critical to state any questions or promises made that influenced your decision to purchase on the record. If your questions are not raised on the recording, your silence will later be used against you. “Why didn’t you raise these issues when we recorded the closing?” Being told what to say or not say on the recording is a Red Flag.
Timeshare and Resort Developer Accountability, Inc. is a 501c4 founded by a group of timeshare members and owners who felt there should be a safe place for first-time timeshare buyers and existing members to go if they don’t know where to turn when attempting to resolve a dispute, or seek release. The first step should always be to contact your resort.
We also seek support from lawmakers hoping to advance constructive change. Any lawmaker should agree that when the oral representation clause is routinely used against the timeshare buyer, in the event of a dispute, then the oral representation (non-reliance) clause should be disclosed BEFORE the solicitation, not buried in electric fine print.
TARDA Volunteers do not give legal advice, but we support those who need help in understanding what federal and state agencies need to be contacted if their dispute is not resolved after contacting their resort. Requirements and resources vary by state.
In 2022 Florida changed the Florida Timeshare Act. All timeshare documents can now be provided electronically, including the Public Offering Statement. The buyer must order a hard copy of the contract, while on vacation, during the 10-day rescission period, and have time to review it before the rescission period expires. Good luck!