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Original Message:

The truth is not pretty... (by KC):

gerards23 wrote:
Ken, I would hope that the "fraudulent actions" of shady timeshare developers/resorts also have "potential consequences". That seems like a taboo subject , I'd like to see more commentary on that. Let's talk about why there is a need for a "perpetuity clause" in timeshare and why can't this be eliminated for future purchases and made retro for the multitude of people who want out, instead of relying on the "slim to none chance" of the do it yourself resale market . Not "You were stupid enough to sign the papers of your own free will" so "like it or not there is no way out"" The lawyers & courts are not on your side" Your mistake! Too Bad" !

When you buy ANY form of real estate (primary house, vacation home, condo, etc. ), you own it until you resell it, give it away, pass it on --- or lose it to foreclosure. It is not logical to expect a timeshare property purchase (which IS "real estate") to somehow be any different. One very significant difference, of course, is that precious few other examples of real estate besides timeshares can or do ever become so quickly worthless and unwanted in the resale market that some of them literally cannot even be given away for free.

Actually, some date-finite ownerships DO exist in the timeshare world, but only where the CC&R's (governing condo documents filed when the place was originally built) identify from the beginning a specific end date for the PLACE ITSELF as a timeshare property (not individual ownerships at the property). In Florida, that time frame is frequently 40 years after initial construction. With the "chains" (e.g., Wyndham, Westgate, Diamond, etc.) I don't believe that such "end dates" exist however. In NO case could governing documents ever just be "retroactively" altered to unilaterally insert "ownership end dates"; to do so would be overtly and very plainly unlawful. End dates also exist in many "right to use" (RTU) memberships (in which there is no actual ownership of anything except a right to "use" anyhow) but even then, not in ALL RTU's.

Personally, what I would very much like to see is FEDERAL LEGISLATION which severely curtails and very strictly controls timeshare developer sales practices NATIONALLY. Unfortunately, that prospect is nowhere on the visible horizon. Congress cannot even seem to agree on a time to have lunch, let alone tackle and strictly regulate a (luxury) "niche" matter like timeshare sales. States have adopted their own individual contract rescission (cancellation) laws, but those "cooling off" periods are very brief, ranging from only 3 days to 10 days, depending upon the individual state. Only three states have as long as 10 days to cancel; in most states it's 5-7 days. In three or four states, it's only 3 days!

Unfortunately, the developers have their butts very well covered, simply by writing contracts that very clearly state, in writing, that any oral representations made are not in any way binding and that only what is stated in writing within the four corners of the contract has any legal meaning at all. Also, there is currently absolutely no legal requirement for the developer to disclose that the "product" may very well have a 90% (or more) decrease in resale market value before the ink on the purchase contract is even completely dry.

Few buyers ever even bother to read the contract contents before (...or after, for that matter) signing their contract. It is (sadly) entirely "legal" (even if also unethical and reprehensible) for the timeshare sales weasels to just lie through their teeth, knowing full well that only the contract content itself is enforceable or meaningful. Only legislation with real teeth can or will ever force any significant or meaningful change down their greedy throats. Without any such legislation forcing much needed changes, the deceptive sales practices will just continue without interruption --- all day, every day --- just as they have for decades already.

I wish I had some encouraging, positive "happy talk" to offer. I don't. The truth is unwelcome and unpleasant; I can't help that. It is your prerogative to just shoot the messenger anyhow.