Purchasing a timeshare is a big decision and it’s important to understand what protections are afforded to you by the law. It should be no surprise that The Golden State is home to a huge number of timeshares, nor should it be a surprise that California has ample consumer protections laws protecting timeshare purchasers including the The Vacation Ownership and Time-Share Act of 2004. If you are a victim of fraud, misrepresentation, or high-pressure sales tactics, our teams’ experience with California law allows us to cancel your timeshare contract legally and permanently without negatively impacting your credit.
If you have purchased or are getting ready to purchase a timeshare in California, you need to at least know the answers to the following questions:
- What is the timeshare cancellation period in California?
- What kind of laws does California have for timeshare purchasers?
- What happens if I stop making my timeshare mortgage payments?
- What happens if I do not pay my maintenance or assessment fees?
- How do I get out of a timeshare purchase in California?
When you buy a timeshare there is a timeframe in which you may easily cancel the purchase known as the cancellation period or the rescission period. The timeshare cancellation period in California is 7 calendar days from the day you sign the contract or the day you receive the Public Offering Statement, whichever is later. This right to cancel may not be waived.
Cancelling the purchase is done by sending a notice of cancellation via mail, fax, or hand delivery. If sent via US mail, the notice is assumed given on the date postmarked. If sent via fax the notice is assumed given on the date of a confirmed transmission. If sent by other means of delivery, the notice is considered given at delivery. We do recommend that you send your notice of cancellation via certified mail so that you have proof.
In California, the timeshare seller is even required to include a partially filled notice of cancellation along with the Public Offering Statement and an explanation of your right to cancel.
If you are still within the cancellation period, don’t waste any more time! Right now it’s as easy as sending the company a letter. So, if you are having regrets, don’t let this opportunity pass.
If the cancellation period has already passed, our team is standing by ready to help. Grab your timeshare paperwork and call or click now to get your questions answered and schedule a free consultation.
Fraud & Misrepresentation in California
California law explicitly prohibits many types of misrepresentations made by salespeople and advertising material. Even though these tactics are forbidden by law, as many of our clients have experienced, the salespeople still do sometimes disregard the law to make a quick buck. If you think you may be a victim of this kind of fraudulent misrepresentation don’t feel bad – it’s not because you are ‘stupid’ or ‘gullible.’ These sales people are master manipulators and will play on your emotions, not appeal to your senses.
Sellers are prohibited from from making any written or oral statement that shall:
- State that the purchase of a time-share interest constitutes a financial investment
- Make any material misrepresentation that is false or misleading in connection with any advertisement or promotion of a time-share plan
- Make a prediction of any increases in the resale price or resale value of the time-share interest
- 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
- Materially misrepresent the size, nature, extent, qualities, or characteristics of the offered time-share plan
- 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
- Materially misrepresent the current or future availability of a resale or rental program offered by or on behalf of the developer
- Materially misrepresent the nature or extent of any incidental benefit
- Fail to deliver any item offered in connection with a promotion to a prospective purchaser upon the conclusion of the sales presentation, or fail to deliver any item offered in connection with a promotion to a prospective purchaser, upon request, reasonably approximate to the conclusion of the length of time for the sales presentation that was previously represented to the prospective purchaser
- Fail to disclose, in a manner that meets the requirements of Section 17537.1 or 17537.2 of the Business and Professions Code, that a certificate, coupon, or raincheck redeemable for fulfillment for goods or services will be provided in connection with a promotion for the purchase of a time-share interest, if that is the case
- Fail to clearly disclose in writing any automatic charging or billing procedure, and fail thereafter to obtain the express written authorization from the prospective purchaser for any purchase, subscription, or enrollment that results in that automatic charging or billing of initial or periodic amounts to the prospective purchaser
- Fail to inform, verbally or in writing, any prospective purchaser that he or she can take as much time as he or she requires in order to read the public report, and any and all other documents necessary to consummate a sale before leaving the premises or signing a contract, and not allowing, upon request, the prospective purchaser the time and opportunity to do so. If the prospective purchaser requests that he or she be able to return the next calendar day to complete the review of the documents before signing, the developer shall accommodate such a request, and the return visit shall not disqualify the prospective purchaser from receiving any price reduction or other incentive for purchasing on the day of the scheduled sales presentation. Further, it shall not be fraudulent or misleading for a developer to honor the request even if presented as an incentive only available on the day of the offer
- Fail to inform any prospective purchaser who contacts the developer with a request to cancel a purchase within the rescission period provided by this chapter all of the procedures necessary to effectively cancel the purchase
- Fail to cancel a purchase upon the receipt of a valid timely written notice of rescission. No person may obtain from the person a waiver or cancellation of the rescission
- Fail to provide any refund of moneys, within the required timeframe, due to the prospective purchaser upon receipt of a valid timely written notice of rescission
- Fail to provide a mechanism for an equitable apportionment of expenses between the time-share owner’s association and any commercial operation on the property not operated by the time-share owner’s association
- Misrepresent or fail to disclose that a prospective purchaser is required to attend a sales presentation to obtain a prize or promotional item, if attendance is a requirement of the promotion
- Offer as a promotional incentive any travel certificate or coupon redeemable for fixed air transportation or hotel accommodations or other travel-related service that entitles the prospective purchaser to a trip of a specified duration unless the offeror states at the time of the offer that there are terms or conditions that must be followed in order to utilize the incentive and that the details of the terms will be sent to the consumer in writing in time to be received by the consumer prior to leaving his or her house to attend the scheduled sales presentation. The writing shall include the approximate times of the air or sea transportation’s departure and return, if applicable, and all other material conditions, including any limitations as to the dates or times available for use of the incentive
- Offer as a promotional incentive any travel certificate or coupon redeemable for transportation, accommodations, or other travel-related service that does not allow the recipient to activate or redeem the incentive without incurring any additional telephone expenses charged by or on behalf of the developer other than the usual toll costs imposed by the prospective purchaser’s telephone service
- Inform prospective purchasers that they are finalists in winning an item offered in connection with a promotion or have already won a specific prize, unless it is true
- If the contract for a time-share interest is negotiated primarily in Spanish, Chinese, Tagalog, Vietnamese, or Korean, orally or in writing, and the developer fails to provide to the prospective purchaser prior to the commencement of the rescission period an unexecuted translation of the contract in the language in which the contract was negotiated
These specific provisions regarding timeshare sales combined with California’s other consumer protections are key to our strategy. As we can see, California timeshare law is pretty clear when it comes to misrepresentation of the facts or the use of high pressure sales tactics. If you think that you might be a victim of misrepresentation our team is ready to get you out. Grab your timeshare paperwork and give us a call for your free consultation. The law, and our team of experts & attorneys, are on your side.
Typically, timeshare purchases in California are financed through a mortgage on the ownership. Failure to make your timeshare mortgage payments will result in a foreclosure. Failure to pay maintenance fees, special assessments, or ad valorem taxes may also result in foreclosure; though in our experience timeshare companies are more interested in hounding owners for outstanding maintenance fees rather than foreclosing, though they will foreclose eventually.
In California, foreclosures on timeshare mortgages are can be either judicial or nonjudicial. Judicial or not, California’s stringent anti-deficiency judgement laws do apply to timeshare purchases. Since they are classed as ‘purchase-money loans’, a deficiency judgement cannot be levied against the borrower after a foreclosure.
While it can be possible to sell a paid-off timeshare, the resale market is practically nonexistent. You’re better off trying to find somebody to give it away to! Because of this, and because many people are desperate to get out of their timeshare, scams are rampant. Commonly, these scam-artist get lists of thousands of potential timeshare owners and call them with too good to be true offers, sometimes even claiming to have a buyer already lined up — only to take their money with upfront fees and run. California law does prohibit this behavior, but of course it can’t exactly prevent it.
Timeshare resellers are required by law to be licensed real estate brokers, however scammers have been known to use fake licenses or attempt to impersonate actual licensed brokers.
It is important to note that pure advertising services are not subject to the same regulation. An advertising service is not required to have a real estate license, nor are they prohibited from collecting up-front fees. Besides, what are you paying for with these services? Usually something you could do by yourself in half an hour without any help!
Really, the safest bet is to just steer clear of the whole mess.
Resources
California Timeshare Foreclosure and Right to Cancel Laws (nolo.com)
California Code, Business and Professions Code – BPC § 11238 (findlaw.com)
The Vacation Ownership and Time-share Act of 2004 (leginfo.legislature.ca.gov)
Our Services
Timeshare Cancellation
Timeshare Mortgage Cancellation
Credit Protection
Timeshare Tax Preparation
Ready To Cancel Your Timeshare?
We Do Not Sell Timeshares
We Do Not List Timeshares
We Cancel Timeshares
Ready To Cancel Your Timeshare?
We Do Not Sell Timeshares
We Do Not List Timeshares
We Cancel Timeshares