Time-share contracts have become a popular way of getting the use of luxurious vacation properties for part of the year. For the purchase price and annual maintenance fees, you buy the right to stay in the resort for a certain amount of time each year for a number of years. In some cases, the buyer is given a fixed time each year to use the resort, and in other, the buyer can choose when to use the timeshare depending on availability.
Time-share sales people may market timeshares aggressively. They are advertised as a relatively inexpensive alternative to owning vacation property. Potential buyers may be offered free diners or accommodation to view the property. Although the marketing may be legitimate, at times the potential buyer may feel overwhelmed by the sales pitch.
What happens if you go to a presentation on timeshares, and in the excitement of the moment sign a contact to buy a time share, but after a night or two at home, decide that a timeshare is not for you?
The new Business Practices and Consumer Protection Act, SBC2004, provides some important protection for buyers, including a cooling off period.
Where a time share is sold by someone in the business of selling time shares, the seller must put in the contract, the seller's name, business and mailing address, telephone number, the date of the contract, a description of the timeshare, the purchase price, and any other costs associated with the purchase, the terms of payment, and if credit is involved the costs of borrowing and terms of credit, and any restrictions on the use of the timeshare. The seller must also include in the contract a notice that the buyer has 10 days in which to cancel the contract, and the seller must give the buyer a copy of the contract.
If you sign a contract to buy a time share from someone who is in the business of selling time shares, but change your mind, you may cancel the contract by giving the seller notice of cancellation no later than 10 days after you have received a copy of the contract. The notice should be in writing and dated, and may be delivered to the seller in person, by registered mail, electronic mail or facsimile.
When the contract is cancelled, then the seller is required to refund any money paid by the buyer, and cancel any future payments and charges authorized by the buyer.
If the seller does not include all of the information required in the contract, such as a notice of the buyer's right to cancel within 10 days, the buyer's time for canceling the contract is extended to one year from the time the buyer has received a copy of the contract.
By Stanley Rule, of the law firm Tinker, Kueng, Churchill and Co. |
