Links to Official State Timeshare Laws and Guides/Manuals

[Grammarhero]

What I'm providing in this post is not legal advice, but legal commentary or observations similar from law review or journal articles. I will try to prepare a spreadsheet this coming Sunday night. This spreadsheet will be the accumulation of TUG TS knowledge.

I wish to thank:
1) @TUGBrian @DeniseM and other tuggers for supporting this project;
2) @CalGalTraveler for recommending adding information about anti-deficiency protections for defaulting TS owners;
3) @Fredflintstone for identifying the main three (3) anti-deficiency states for defaulting TS owners and providing the CA TS Manual website link and page numbers;
4) @pedro47 for identifying my formerly outdated links for VA (pretty embarrassing for me to learn that from a non-lawyer).

As legal commentary, I noticed:
1) Only CA has mandatory anti-deficiency foreclosure, no matter what defenses defaulting TS owners raise.
2) SC and FL have elective non-judicial, anti-deficiency foreclosures. Inaction to or electing non-judicial, anti-deficiency foreclosures reserves that anti-deficiency right for defaulting TS owners, but objections waive that anti-deficiency right.
3) IN has permissive anti-deficiency, judicial foreclosures. The only method to obtain waiver of deficiency judgment is for defaulting TS owner to waive 60/90-day sale notice period (IC 32-27-7-5), with IN resort's agreement. If the defaulting IN-TS owner has a valuable week (i.e. summer, Christmas, New Years, near time and location of Indianapolis 500 or Notre Dame football games), the IN resort might want to resell quickly and agree to waive the deficiency judgment.
4) IL also has a permissive non-judicial, anti-deficiency foreclosure. Maybe if the TS owner is judgment-proof, on fixed income, or has ERISA-protected retirement accounts; or the IL resorts know they can’t collect on deficiency judgments; IL resorts might resort to a non-judicial, anti-deficiency foreclosure to save legal costs.
5) defaulting homeowners, but not MF-defaulting TS owners, get anti-deficiency protections in AZ, HI, NV, MT, ND, OR, and OK. Based on circumstances, mortgage-defaulting TS owners might get anti-deficiency protections in HI and MT.

 

[Fredflintstone]

Nicely done @Grammarhero

Thank you for reminding folks that the information provided is NOT an expressed or implied solicitor/client relationship nor should be seen as legal advice. The purpose of providing information is to assist those on doing their own research and make their own decisions on course of action or inaction. Every situation is different and thus we always recommend you consult a legal expert on your particular situation.




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[CalGalTraveler]

Thank you @Grammarhero and @Fredflintstone for the information on this.

IMHO this is the most valuable sticky on TUG.
(and there are many valuable stickies.)

 

[overthehill]

Thank you, Grammarhero, for taking the time to compile such a detailed list. Although I have familiarity with the RCW's in Washington, I never gave thought to researching specific laws related to Timeshares. Your post provided the impetus for me to read our state's laws on the subject. One interesting provision allows an owner to obtain a list of the membership from the developer providing the list is not used for commercial purposes. Your efforts are greatly appreciated.

 

[Ferdinant]

Hi! Thank you for your info about state laws and other things! Can you give the province/country law for Ontario Canada? We(me and my wife are 66 years old,) I had a stroke three years ago and can not use time share any more. I am thinking not to pay MF, we do not have any asset, are retired and live by minimum pension.

 

[Fredflintstone]

Hi! Thank you for your info about state laws and other things! Can you give the province/country law for Ontario Canada? We(me and my wife are 66 years old,) I had a stroke three years ago and can not use time share any more. I am thinking not to pay MF, we do not have any asset, are retired and live by minimum pension.

https://www.ontario.ca/page/buying-time-share-your-rights#section-related

Perhaps contacting the Ontario Consumer Protection Bureau in Ontario May help.


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[Fredflintstone]

Hi! Thank you for your info about state laws and other things! Can you give the province/country law for Ontario Canada? We(me and my wife are 66 years old,) I had a stroke three years ago and can not use time share any more. I am thinking not to pay MF, we do not have any asset, are retired and live by minimum pension.

This article may or may not help you.


https://business.financialpost.com/pmn/business-pmn/how-to-get-rid-of-a-timeshare


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[pianodinosaur]

@Grammarhero:

You are a true TUG hero!! Thank you.

 

[Grammarhero]

Apologies for just getting to this now. I was hanging out with the wife, kid, and dog this weekend. I have the work day off, so I'm able to get to this now. Stay tuned.

 

[Grammarhero]

Glad I'm spending all day researching this. @COSkier1 @Fredflintstone @CalGalTraveler
Check out page 363: "

The plaintiff in an action brought pursuant to this section is deemed to waive any


claims against a defendant for a deficiency remaining after the foreclosure of the lien for

assessment and for attorney fees related to the foreclosure action."
CO allows anti-deficiency, judicial foreclosures for defaulting MF. http://leg.colorado.gov/sites/default/files/images/olls/crs2018-title-38.pdf (page 363)

 

[MomIsSmart]

So if I bought a TS consisting of DRI points only while I was in Florida, but the contract wording says the contract goes by Nevada law, does that mean only NV law prevails? Does it make a difference whether actual real estate or "points" (which really are not anything real) were purchased. DRI just produces them out of thin are (like fiat currency). For this scenario, can they pursue a deficiency judgement on my personal assets, like my home?

 

[Grammarhero]

Maine also an anti-deficiency, non-judicial TS foreclosure state:
http://legislature.maine.gov/statutes/33/title33sec595.html
"4. Forfeiture of deficiency claim. If the holder of the mortgage conducts a nonjudicial foreclosure pursuant to this section, the holder forfeits the holder's right to pursue a claim for any deficiency in the payment of the time-share owner's obligations resulting from the application of the proceeds of the sale to such obligations.
If the holder of a security interest in a time-share license conducts a nonjudicial foreclosure pursuant to this section, the holder forfeits the holder's right to pursue a claim for any deficiency in the payment of the time-share owner's obligations resulting from the application of the proceeds of the sale to such obligations."

@CalGalTraveler @Fredflintstone @TUGBrian work and fam kept me occupied. I am still working on this project, including upcoming tables.

 

[CalGalTraveler]

@Grammarhero no worries. You are doing a great service to this community! Take your time. Enjoy your holidays. Better to be right than rushed.

So far you have uncovered a trove i.e.

• California is the most consumer friendly state to own a TS.
• Florida and SC one must not object to foreclosure or they could go after your assets
• Colorado anti-deficiency covered for MF but not for TS mortgage
• Maine is non-judicial, anti-deficiency.

This is changing the way I view future timeshare acquisitions. One of my biggest fears is being locked into a timeshare that we cannot dispose of. I will never buy pure points, and never acquire a free timeshare deed that is not in one of these states.

Although I intend to pay all MF, you just cannot predict the future. We have already witnessed that the deedback programs are fickle and can change at any time. These laws actually keep the TS companies in check and makes them more likely to deed back in a reasonable fashion.

Your resources are a gift to many as it is empowering the consumer to know their rights, know when they are being lied to, and not get scammed by exit companies because they can do this themselves.

Happy Holidays.

 

[Fredflintstone]

I’m with you on that @CalGalTraveler. Personally, I too would only buy a TS in a non judicial, anti deficiency state. It’s not because I plan on exercising a foreclosure option. It’s because I have an OUT if the resorts refuse deed backs, I can’t sell it after trying many sites to sell and frankly have no other option.

Again, I applaud resorts who now do deed backs. My personal opinion is this legislation coupled with high defaults and Exit companies paved the way for them to look at deed back programs.

And...

To my knowledge, the states with the highest numbers of Timeshare owners are CA, FL and SC so their state legislation is good news. I think even higher than NV and HI.

Thanks @Grammarhero for doing this. Many will appreciate the legal information.


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[Grammarhero]

@TUGBrian @DeniseM @Fredflintstone @CalGalTraveler @SNA27 @cyntravel @SteelerGal @pedro47 @overthehill @pianodinosaur

Good morning, this is my long-awaited Official State TS Laws Table, which was a pleasure and interesting to prepare. Lawyers like jotting how many hours they spend on certain documents. FWIW, this table took eight (8) hours total as follows:
1) four (4) hours initial research;
2) three and one-quarter (3.25 hours) to organize research into table, double-check research, identify proper names of state TS Acts or Chapters, prepare citations, double-check official links, provide unofficial links with often broken official Lexis links; and,
3) three-quarters (0.75) hours to proofread and double-check entire TS table.

@TUGBrian might be better to replace the entire first message with the attached pdfs.

My next table will be the Official State TS Foreclosure/Deficiency Laws Table. So far, I've spent five (5) hours on initial research. I will need another nine (9) hours as follows:
1) four (4) hours on initial research for twenty-two (22) states;
2) four (4) hours to organize research into tables, double-check research, prepare citations, double-check official links, provide unofficial links with often broken official Lexis links; and,
3) one (1) hour to proofread and double-check entire table.

 

[Fredflintstone]

Nice work! Just send @TUGBrian the bill


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[Grammarhero]

Nice work! Just send @TUGBrian the bill


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He paid the bill with a TUG Lifetime Membership.

 

[Grammarhero]

Missouri allows real property deficiency judgments.

443.230

Judgment on constructive notice.

revisor.mo.gov

 

[pedro47]

Any thoughts why the Commonwealth of Virginia changed the law with all new languages effective October 2019 ?

 

[pedro47]

He paid the bill with a TUG Lifetime Membership.

Thanks you Grammarhero for all your hard & detail work.
Thanks you TUGBrian, for given Grammarhero, a TUG LifeTime Membership. Outstanding !!!!!!!!!!!

 

[Grammarhero]

Any thoughts why the Commonwealth of Virginia changed the law with all new languages effective October 2019 ?

Supposedly, the new law "organizes the laws in a more logical manner, removes obsolete and duplicative provisions, and improves the structure and clarity of statutes pertaining to real and personal property conveyances, recordation of deeds, rental property, common interest communities, escheats, and unclaimed property."

https://lis.virginia.gov/cgi-bin/legp604.exe?ses=191&typ=bil&val=sb1080

However, it looks like the VA state now has some new powers to regulate TS resorts. https://lis.virginia.gov/cgi-bin/legp604.exe?ses=191&typ=bil&val=hb1962

 

[pedro47]

Supposedly, the new law "organizes the laws in a more logical manner, removes obsolete and duplicative provisions, and improves the structure and clarity of statutes pertaining to real and personal property conveyances, recordation of deeds, rental property, common interest communities, escheats, and unclaimed property."

https://lis.virginia.gov/cgi-bin/legp604.exe?ses=191&typ=bil&val=sb1080

However, it looks like the VA state now has some new powers to regulate TS resorts. https://lis.virginia.gov/cgi-bin/legp604.exe?ses=191&typ=bil&val=hb1962

Thanks, I will follow-up with you in the next few months.

 

[Grammarhero]

TX is a foreclosure deficiency state, Tex. Prop. Code Secs. 51.003 and .004: https://statutes.capitol.texas.gov/Docs/PR/htm/PR.51.htm

 

[Grammarhero]

LA is a TS foreclosure deficiency state, La. Code Civ. Proc. Ann. Art. 2771: http://legis.la.gov/Legis/Law.aspx?d=111519

 

[Grammarhero]

Update, more precise link on TN TS foreclosure deficiency laws: https://law.justia.com/codes/tennessee/2018/title-35/chapter-5/section-35-5-118/ (unofficial link).