We provide you with information regarding timeshare exit companies that may help you to legally exit a timeshare contract that was purchased in California.
In California, timeshare sales are heavily regulated operations, including the Vacation Ownership and Timeshare Act of 2004. Our team specializes in evaluating timeshare exit companies that might be able to help you if any of the following happened during the purchase of your timeshare:
– Salesperson misrepresented facts (for instance: if you were told the product involved real state ownership, when it actually was a right to use timeshare, the nature of the product was misrepresented to you);
– False promises were made (for example: promises about how easy it would be for the timeshare owner to resell or transfer the product);
– Wrong or non-disclosed information (for instance: wrong or non-disclosed information relating to how and where you could spend your timeshare points and blackout dates);
– Overpromising (as an example: profits and value increase estimates that did not prove themselves realistic after the purchase was made);
– High-pressure sales environment (for example: aggressive sales techniques, often chasing clients during vulnerable moments and offering rewards in exchange for attendance to sales presentations);
– General fraudulent and negligent conduct are covered by consumer protection rules in California, including common law principles and specific contract rules (among others: fraud, misrepresentation, and undue influence)
Rescission timeframe: according to California Business and Professions Code, Section 11.238, all timeshare purchasers have the right to cancel the contract in up to seven business days after the contract is executed or the public report is received by the purchaser, whichever is later. If purchasers exercise this right within the cancellation period they are entitled to full reimbursement of all funds paid to the seller. As set forth by Section 11.239, timeshare sellers must advise purchasers about the right to cancel, how to exercise it, and where to send cancellation requests.
Stop on mortgage payments: according to California Code of Civil Procedure, Section 580(b), which applies to timeshare agreements, the timeshare purchase contract must include provisions stating that the lender will not seek a deficiency judgement, meaning that the timeshare property/interest could be foreclosed and purchaser could lose it.
Stop on assessments and maintenance fees: when purchasers fail to pay the required fees they are breaching the contract and, thus, could be sued by the creditor. California Law allows wage garnishment and other collection methods that could place purchasers in a problematic situation. Moreover, defaulting on timeshare payments would certainly bring credit consequences to purchasers. However, either by contract provisions or by negotiation and settlement strategies, there might be alternatives involving the transfer of timeshare ownership to the benefit of the original seller while relieving the purchaser from future payments. After timeshare ownership is given back to the original seller, more likely than not the seller will not pursue payment of the debit.
Senate Bill 578: in 2019, SB 578 was enacted in California, amending timeshare related sections of the Business and Professions Code. The main changes involved allowance for timeshare sellers to offer lodging farther than the previous limit of twenty miles of the property presented to the purchaser, as long as both parties agree in writing, as well as permission to use different arbitration methods than the American Arbitration Association, which was the only approved method before SB 578.
Probate: generally speaking, when a timeshare owner passes way the heirs may have the option to disclaim all or part of the interests contained in the inheritance, including the timeshare. All past due assessments, fees, and mortgage payments could be collected from the estate, but there is likely no rule obligating heirs to take ownership of a timeshare. The heirs may have the possibility to refuse a portion of the inheritance or all of it. Probate matters are rather specific and consultation with a specialized Probate Attorney is strongly advised.
Please do not hesitate to contact one of our verified timeshare exit companies in order to find the best strategy to get rid of your timeshare ownership.