Should America Change Its Timeshare Laws?

Once an exciting way to invest in a vacation property, timeshares have lately become synonymous with scams. While the overall idea of a timeshare makes sense — you pay a set amount of money in exchange for the right to use a resort property a few times a year — the actual fine print is another story.

Due to the hidden expenses involved in timeshare purchases, including finance charges, annual maintenance fees, taxes, and more, purchasers often find themselves drowning in debt and passing it down to their beneficiaries. Currently, timeshare laws and regulations don’t protect the buyer, but places like https://acagroup.org/ are available to give consumers a better chance at getting out of their contracts.

Proponents of the timeshare industry claim that the buyers know what they’re getting into, as it’s all laid out in the contract. But the average purchaser doesn’t realize they must pay attention to the fine print and watch for deceptive and shady practices. Something has to give in America’s timeshare industry, prompting many to suggest that the nation must change its laws, as we’ll discuss here.

1. Understanding Timeshare Plans

Technically, most timeshare businesses operate within the scope of the law, if not the letter. The general timeshare plans are fixed, floating, and point-based usage. These plans tell you when you can use your timeshare property, provided you make your payments. However, many people are duped or misled as two what their plan actually involves, and will then later be looking for advice on how to Get Rid of a Canto del Sol Timeshare or whatever area they have bought into.

These plans are broken up into one of two types of agreements: deeded and right-to-use. Deeded timeshares happen when the buyer has a percentage of legal ownership of the property, along with anyone else who buys into the timeshare. These agreements are considered real estate, and owners can resell or rent their share. Right-to-use agreements, on the other hand, work like a lease, allowing the holder to act as a tenant using the property during their agreed-upon dates. They can’t resell their interest.

2. Current Timeshare Laws

The average person entering a timeshare contract usually doesn’t understand the differences between the plans and their part of the agreement. They’re convinced that they’re getting a great deal because it’s cheaper to own a share in something than to rent.

Timeshare vendors attract buyers by offering carrots such as free tickets to attractions or cash for sitting through their presentations. These well-trained vendors do not like to hear “no,” and will pursue you until you change your mind.

Much of their sales tactics are deceptive at best and dishonest at worst, although some places prohibit the developers from misleading customers. Some state governments have statutes regulating timeshare transactions, but there’s no consistency, and these statutes often have loopholes.

It’s not uncommon to hear those who have purchased timeshares admit that they were guilted or pressured into signing the contract, which binds them to a lifetime financial debt.

3. How Vendors Manipulate Buyers

In short, there’s plenty of room for improvement in the legal realm to protect consumers from sketchy and deceptive timeshare business practices. The idea of a timeshare isn’t necessarily bad; it’s the fact that the industry’s ability to thrive unregulated that gives it such a bad name.

As we argue for consumer protection, the focus must be on ensuring the typical ways vendors manipulate buyers are eliminated or regulated. Some examples of places where legislation is necessary include:

* Requirements for timeshare vendors to explain all legal jargon
* Making it illegal to promise benefits that aren’t factual
* Making it illegal to lie about factors to seal the deal
* Making all disclosures conspicuously stated
* Eliminating “limited-time” discounts that aren’t legitimate
* Making it illegal to apply ongoing pressure on consumers, keeping them in a room for hours against their will, or rushing them to make a decision.

Another concern is that the typical consumer doesn’t realize the dangers of hidden expenses. Annual maintenance fees and assessments, increasing costs, and late fees make it challenging to pay for a “weekly vacation” all year. When the actual cost is realized, along with the difficulty in selling a timeshare for what they need to cover their debt, foreclosure is a frequent result. Regulation of disclosure notices is vital but sadly lacking.

If you haven’t purchased a timeshare yet and are considering it, talk to a legal representative before you sign any contracts. And if it’s too late and you’re regretting your decision, reach out to a consumer protection timeshare organization near you.