1 year right to rescind in Florida?

Someone posted in the Buying/Selling Timeshares about a 1 year right to rescind in Florida.

PerryM said:

"Unless the seller offered you a 10-day right to rescind you then have 1 year to rescind for any reason you want in Florida."
http://www.flsenate.gov/Statutes/in...y_Statute&Search_String=&URL=Ch0721/Sec07.HTM

Does anyone know if this applies to purchases from resellers (not the developer)? The wording specifically mentions "developer".

Yes, the one-year clause applies to resale transfers of timeshares. The link you gave is not the applicable link. This section of the law makes it clear that resale agreements must have the required language or the purchaser can cancel the purchase any time within a year.

Some purchase-sale contracts, such as the one that Timesharing Today sells, have the required language as optional paragraphs to add when the transaction involves a Florida purchaser or timeshare.

Note: Because this topic relates more broadly to buying and selling, I'm moving the thread to the BSR forum.

Thank you, DaveM!

Wow! Our sales contract did NOT include a 10-day right to rescind clause.

Our week started right away after purchase. We deposited it with an exchange company after paying the maintenance fees. I wonder if that would somehow invalidate the right to cancel the contract (use of the timeshare).

Has anyone ever done this; cancelled a Florida purchase within a year after it was purchased due to the missing 10-day clause?

TravelSFO said:

Thank you, DaveM!

Wow! Our sales contract did NOT include a 10-day right to rescind clause.

Our week started right away after purchase. We deposited it with an exchange company after paying the maintenance fees. I wonder if that would somehow invalidate the right to cancel the contract (use of the timeshare).

Has anyone ever done this; cancelled a Florida purchase within a year after it was purchased due to the missing 10-day clause?

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It does read, "the contract shall be voidable at the option of the purchaser for a period of 1 year after the date of closing". I wonder how many ebay sales contracts include all the necessary language. This could be huge loophole for those that have been taken advantage of by a seller, or remiss in their own due diligence when purchasing resale. I hope we can find a Florida real estate attorney that would like to comment.

Dave- Thanks for posting this Florida law link on this subject. This might provide good material for Timeshare Today to get more knowledge to those affected. However, my guess would be if too many started to excercise this little or mostly unknown provision, it will be closed very fast to a more reasonable language.

Timesharing Today is well aware of the provision and has included a discussion of the point at least twice within the last six or seven years.

That's why they have that language for the contracts the offer to those of us who might resell our timeshares. The language in TST's instructions to their model contract state, in part ...

The FLORIDA ADDENDUM should be attached to the Resale Agreement in the following situations:
1. The timeshare unit is located in Florida, or
2. The contract is signed by one of the parties while in the State of Florida.

Under a Florida statute adopted in 1995, if a contract made in Florida or involving a Florida timeshare does not include the provisions set forth in the FLORIDA ADDENDUM, the buyer may cancel the transaction anytime up to a year after the closing.

You need to provide certain information to complete the FLORIDA ADDENDUM; this may require your calling the resort to get some of the information.

(continued)

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Dave M said:

Timesharing Today is well aware of the provision and has included a discussion of the point at least twice within the last six or seven years.

That's why they have that language for the contracts the offer to those of us who might resell our timeshares. The language in TST's instructions to their model contract state, in part ...

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That's good to hear. I must admit I don't read Timeshare Today regularly. And, I suppose many of those affected don't either. TUG's membership is also only a "drop in the bucket", so I don't expect knowledge of this law is too far-reaching. Too bad.

I too would be interested in learning how often this remedy has been sought by purchaser's, and what the process would involve. I also wonder how many Florida resale transactions have occurred without compliance.

I just upgraded in april 2006 from a every other year to a fixed week starting next year from Westgate Lakes resort in Orlando. I would love to get out of that contract!

Not very likely. I think you'll find that Westgate followed the law by including the appropriate cancellation language in the contract you signed. Further, Westgate doesn't transfer title during that mandatory 10-day waiting period.

Thus, you should plan on enjoying your upgraded timeshare. Hang around here to learn how to do that!

And welcome to TUG!

I don't see this as an issue at all.

Every developer in Florida has the the appropriate cancellation language in their contracts. And, if you bought resale then you should have gotten a good price and rescinding just before the year is up is sleezy and shoundn't be something your considering.

I agree, Bill. Normally it shouldn't be an issue.

However, as one example of what can go wrong, there is a Timesharing Today story which asserts that a developer closed a sale transaction and transferred title on the same day the purchaser signed the contract. If true, that's a serious violation of the law and the buyer should have the extra time provided to cancel.

The purpose of the law is to ensure that buyers are properly advised that they can cancel. Thus, if a resale purchaser isn't advised of the right to cancel, that buyer should be able to have buyer's remorse and cancel when they find out they have that cancellation right - assuming it's within the year. (Not all resale buyers get good deals!)

Dave M said:

Not very likely. I think you'll find that Westgate followed the law by including the appropriate cancellation language in the contract you signed. Further, Westgate doesn't transfer title during that mandatory 10-day waiting period.

Thus, you should plan on enjoying your upgraded timeshare. Hang around here to learn how to do that!

And welcome to TUG!

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Thanks for the advice. I just shouldn't have jumped this quickly!

Bill4728 said:

I don't see this as an issue at all.

Every developer in Florida has the the appropriate cancellation language in their contracts. And, if you bought resale then you should have gotten a good price and rescinding just before the year is up is sleezy and shoundn't be something your considering.

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There's not a chance that a Sleazy Broker sold one at 1/2 of New which may still be twice what it's worth ????

Rent_Share said:

There's not a chance that a Sleazy Broker sold one at 1/2 of New which may still be twice what it's worth ????

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It is possible, but a sleazy broker will have the proper wording in your contract. The only one that has any chance will not include that is individual seller, especially someone only sell one time. And if you pay that price and use the resort and try to tell them to take back at 1 year, you will be the sleazy one.

Jya-Ning