According to The American Resort Development Association or ARDA, a recent passage of legislation by Florida’s state legislature ensures that important protections for timeshare owners and those who are selling their timeshares are in place. The bill HB 61 also codifies a common industry practice regarding the taxation of transient stays at timeshare resorts. It also allows timeshare developers to offer “Debt-Cancellation” products to purchasers.

It has become an increasing concern as state and local governments seek new revenue to fill the ever growing budget shortfalls although no state or jurisdiction currently collects a tax on timeshare exchange. One of the major attractions for timeshare buyers in recent years, Florida becomes the third state to pass legislation specifically protecting timeshare owners, particularly from taxes on exchange. Moreover, HB 61 protects the competitive position of Florida timeshares and the ability of Florida timeshare owners to effectively use the exchange process by preventing taxes that could raise the cost and lower the desirability of exchanges into the state.

ARDA, together with its Resort Owner’s Coalition, has advocated for state legislation guaranteeing that timeshare owners are protected from such taxes.

This HB 61 also cleared the way for timeshare developers to offer “Debt Cancellation” products. These arrangements would allow purchasers to return a timeshare to the developer if the individual losses a job or an occurrence of other specified events. This ensures that timeshare owners availing of the program will not experience negative impact on his consumer’s credit score. The legislation also represents the tax status of transient stays at timeshare properties. The common industry practice in such cases has been to remit tax in the same manner as a traditional hotel, but a recent court decision in South Florida called into question the taxability of these business transactions. With HB 61, the tax statutes of Florida can be updated to clarify that transient stays are taxable codifying the long-time practice.

The Real Estate Commission has regulated state land sales laws specifically for timesharing. Hopefully, this can curb the rate of those seeking for timeshare relief since the laws are in favor of the timeshare owners. Usually, the regulating authority enacts certain laws depending on the state where the property is located. So timeshare buyers should also check the regulations that were already enacted in their timeshare locations.

In Florida, for instance, as stated in the Florida Vacation Plan as well as the Timesharing Act, purchasers are allowed to cancel any contracts within 10 days after the contract signing. Cancellation through writing must be addressed to the seller and any attempt of obtaining a waiver for the cancellation right will have no effect. However, closing documents can be done as long as the period of cancellation has expired.

In the State of Oregon, a purchaser may cancel the contract or agreement for any reason within 5 days after the signing engagement has occurred. Once the developer receives the notice for cancellation, any payments made by the purchaser must be returned. After the return of payments, the immediate transfer of rights from the purchaser to the developer must take place. Waiving for the right of cancellation is also not effective.

In Maryland, timeshare purchasers are given the right to cancel any sales contract provided that it occurs before or on the midnight prior to the ten calendar days. A false representation made by the developer informing the purchaser that the cancellation of agreement cannot be obtained is not permitted by the law. Cancellation period must be over first before closing documents can take place.

These are just some of the state laws governing any timeshare transactions. Before you get rid of your timeshares, know your rights as a timeshare owner. Approach the appropriate authorities located in your state. Otherwise, the risks for misleading information and unlawful negotiations can take place.

The economic crisis is slowing down timeshare sales. Most prospects for timeshare ownership are foregoing acquiring a timeshare to be able control their spending. The decline in sales can also be attributed to the number of timeshare owners who are seeking help in getting rid of their timeshares, a phenomenon which is increasing in numbers, still because of the crisis.

The economic situation did not only make people careful on how they spend their money but they have also become aware on how they spend their time. Preparing for a vacation may be a good plan. However, during this time that prices of commodities are going up, spending for a vacation is an additional expense. It is impractical.

How would economic crisis affect timeshare owners? Timeshare owners pay fees for maintenance and the like. The worst part is, in the contract that you signed, timeshare companies may add additional fees for repair and other costs. Doing so will also increase their profit. So during this financial crisis, it is possible that they are charging timeshare owners additional fees. This would mean an increase in payment on top of what the timeshare owners may not be able to afford in the near future. Timeshare owners may be putting to risk their savings or much worse having their house mortgaged to pay for their timeshare ownership which may not be a sensible thing to do.

Timeshare may be a good preparation for a vacation, however, at this time of economic crisis, timeshare is not a practical thing to pay especially if you fall short of the budget that you have. This is also the very reason why timeshare owners are seeking timeshare relief, because this is what would help them save more, that instead of paying for timeshare, they would rather save their vacation expenses for other more important things they might need.