The Timeshare Resale Accountability Act

[FractionalTraveler]

Anyone read about the new Timeshare Resale Accountability Act in Florida?

Sound like an overdue piece of legistation but definitely a move in the right direction for the industry.

I can only hope that other states will look to adopt similar legislation.

Good work by ARDA and the Florida legislature on this one!

Hopefully this will help clean up the mess on the secondary market and begin to give timesharing a better reputation in the future!

 

[theo]

Hold the applause...

Anyone read about the new Timeshare Resale Accountability Act in Florida?

Sound like an overdue piece of legistation but definitely a move in the right direction for the industry.

I can only hope that other states will look to adopt similar legislation.

Good work by ARDA and the Florida legislature on this one!

Hopefully this will help clean up the mess on the secondary market and begin to give timesharing a better reputation in the future!

I think your joy and platitudes may be just a bit premature; as far as I know this proposed legislation is still in the committee / discussion / amending stage of development and proceedings. It remains to be seen whether or not the final product is even worth the paper it's printed on...

 

[TUGBrian]

you should thank the members of the LTRBA...not ARDA....as they had way more to do with it.

 

[FractionalTraveler]

I think your joy and platitudes may be just a bit premature; as far as I know this proposed legislation is still in the committee / discussion / amending stage of development and proceedings. It remains to be seen whether or not the final product is even worth the paper it's printed on...

My understanding is that this has passed by a vote of 40-0 and the law goes into effect on July 1st, 2012.

Please let everyone know if this is not the case.

 

[FractionalTraveler]

you should thank the members of the LTRBA...not ARDA....as they had way more to do with it.

I will thank LTRBA (all 65 members) when they can demonstrate their success rate on closings.

Until then, ARDA gets my contributions and applause.

 

[TUGBrian]

Quite the flawed logic...might as well thank the red cross too while you are at it if you are going to ignore the people who actually spearheaded the passing of this law and give thanks to entities that had little to do with it.

pretty sure any of the LTRBA members would be happy to provide you with completed sales numbers upon your request.

 

[FractionalTraveler]

Quite the flawed logic...might as well thank the red cross too while you are at it if you are going to ignore the people who actually spearheaded the passing of this law and give thanks to entities that had little to do with it.

pretty sure any of the LTRBA members would be happy to provide you with completed sales numbers upon your request.

I would recommend LTRBA come out with their own press release taking credit for their efforts on this legislation along with the Attorney General.

Looking through the public records for the 2011 and 2012 florida legislature, I was not able to find any reference to this organization's contribitions regarding this bill.

Also, did not find a single hit on a google search relating to the LTRBA contributions on this bill.

Don't get me wrong, I'm not saying it didn't occur. Just letting you know I was unable to locate the information on the Web.

Thats why I made my recommendation.

 

[theo]

Where's the beef?...

[/QUOTE FractionalTraveler;1261495] Looking through the public records for the 2011 and 2012 florida legislature....[/QUOTE]
-------------------------------------------------------------------------------------

Perhaps your research energy regarding the Florida legislature could be better utilized by instead providing us with a link or other useful, specific reference to the actual content and language of this new legislation?

Your recommended platitudes for ARDA seem (to me, anyhow) to be entirely unwarranted --- particularly if the new legislation turns out to be just noise and puffery (i.e., a loud bark, but with a toothless bite).

Forgive my cynicism, but you've provided nothing of any real substance here; just an unwarranted recommendation for undeserved praise for ARDA, to which (by your own words) you contribute money.

Imho, you (and ARDA) both lack credibility. But to repeat my subject line...Where's the Beef ?

 

[TUGBrian]

I would recommend LTRBA come out with their own press release taking credit for their efforts on this legislation along with the Attorney General.

Looking through the public records for the 2011 and 2012 florida legislature, I was not able to find any reference to this organization's contribitions regarding this bill.

Also, did not find a single hit on a google search relating to the LTRBA contributions on this bill.

Don't get me wrong, I'm not saying it didn't occur. Just letting you know I was unable to locate the information on the Web.

Thats why I made my recommendation.

Where is the information relating to ARDA contributing to the bill that earns your praise for them?

if you wanted information relating to the LTRBA contributing to the bill, why did you make the claim that you wanted to see a demonstration on their timeshare resale success?

 

[DeniseM]

I will thank LTRBA (all 65 members) when they can demonstrate their success rate on closings.

Hmmmm....you sound like a competitor...

 

[mdonato]

Good afternoon!
All the members of LTBRA played a role in this law being passed as we are on the front lines of the scam battle lines. We hear from owners daily on how scams have taken advantage of them. The Florida State Rep who spear headed this bill is also my neighbor Eric Eisnaugle. I introduced him to more educated people in our group like Tom Tubbs & Judi Kozlowski who deserve much credit. ARDA actually did propose something but is was thrown out early on. I spoke to Eric last night on the matter and in my opinion I feel the state really tried to do what is best for all parties and tried to hurt only the scam artist that plague our industry out of Florida. He told me they spoke to everyone including ARDA & LTBRA. Eric spoke at our annual LTBRA meeting that took place in Orlando in November and listened to our suggestions. However, on this one why do we have to give anyone group the credit I personally say this one we should as a group take the "WIN".
Now I just hope it truelly makes a difference. Time will only tell.
In regards to a previous person and the LTBRA track record. That is the same with anything in life. You have really great lawyers and not so great lawyers. Great teachers and teachers you fall asleep in class for. Timeshare Resale is no different. At least a consumer now has a place to go to find someone honest to try and help them. Myself, I have been in this industry over 10 yrs and I love it. I am happy to share any of my numbers if I have them to give. I mostly measure my success though in either helping someone to buy that great deal or rent out the perfect week for thier vacation or selling the timeshare my owner hasnt used for years. Everyone is different that is just me! Anyone/group trying to do good for our industry people should support.
That is my 5 Cents for the day! Michelle

 

[Murphiavelli]

LTRBA Contributions

LTRBA Brokers do not charge upfront fees, so I am not sure how we could exist if we were not "closing" contracts, as you suggested.

2nd, we formed the LTRBA as a result of the original proposed bill at the ARDA timeshare resale forum in April of 2010 (a version that did little to help consumers and placed undue restrictions on companies that were operating legally and ethically). We have sacrificed time, money and energy into an industry wide problem that both ARDA and timeshare developers have more or less ignored for years.

We compete with developers that slime our reputations, and scam companies that say we are scams....yet, we persevere and really are aimed at providing liquidity to timeshare owners, and providing them with an honest service.

This bill will help timeshare owners, and the final version(s) were shared with us at a meeting Michelle mentioned in Orlando, FL in November. Representatives from Westgate, Marriott, Hilton, and Disney were all present, as well as officials from FL that included Mr. Eisnagle, and numerous other investigators.

Praise is not really what we are looking for. It's pressure. Pressure on ARDA and the numerous HOA and Developers out there that turn a blind eye to their customers...unless they are willing to open their wallets again. We really hope that developers will help us and their owner bases to sell their contracts. PCC and other companies out there are slowly destroying this industry, and only the developers have the ability to right the ship.


~Mike

 

[mdonato]

LTRBA Brokers do not charge upfront fees, so I am not sure how we could exist if we were not "closing" contracts, as you suggested.

2nd, we formed the LTRBA as a result of the original proposed bill at the ARDA timeshare resale forum in April of 2010 (a version that did little to help consumers and placed undue restrictions on companies that were operating legally and ethically). We have sacrificed time, money and energy into an industry wide problem that both ARDA and timeshare developers have more or less ignored for years.

We compete with developers that slime our reputations, and scam companies that say we are scams....yet, we persevere and really are aimed at providing liquidity to timeshare owners, and providing them with an honest service.

This bill will help timeshare owners, and the final version(s) were shared with us at a meeting Michelle mentioned in Orlando, FL in November. Representatives from Westgate, Marriott, Hilton, and Disney were all present, as well as officials from FL that included Mr. Eisnagle, and numerous other investigators.

Praise is not really what we are looking for. It's pressure. Pressure on ARDA and the numerous HOA and Developers out there that turn a blind eye to their customers...unless they are willing to open their wallets again. We really hope that developers will help us and their owner bases to sell their contracts. PCC and other companies out there are slowly destroying this industry, and only the developers have the ability to right the ship.


~Mike

So eloquently said. "Thank-you"
The bill is just a step in the right direction for all. We still have much work to do. It doesn’t take a rocket scientist to know the scam artist will just move to another state. So we must all stay diligent and keep getting the word out to all owners and help the developers know we are here to help and here to stay!

 

[FractionalTraveler]

[/QUOTE FractionalTraveler;1261495] Looking through the public records for the 2011 and 2012 florida legislature....

-------------------------------------------------------------------------------------

Perhaps your research energy regarding the Florida legislature could be better utilized by instead providing us with a link or other useful, specific reference to the actual content and language of this new legislation?

Your recommended platitudes for ARDA seem (to me, anyhow) to be entirely unwarranted --- particularly if the new legislation turns out to be just noise and puffery (i.e., a loud bark, but with a toothless bite).

Forgive my cynicism, but you've provided nothing of any real substance here; just an unwarranted recommendation for undeserved praise for ARDA, to which (by your own words) you contribute money.

Imho, you fail the credibility test. Still, to repeat the point of my subject line...Where's the Beef ? [/QUOTE]


Here is the link to the Attorney General press release: http://www.myfloridalegal.com/newsrel.nsf/newsreleases/FDF9496C2C3B4A40852579BD000433AD

This legislation is an improvement to the industry's current situation.

Correct me if I am wrong but I don't believe the mission or goal of the LTRBA is to lobby goverment agencies. If so the group would be registered in the state of florida as such.

You need to read my post instead of getting defensive. I never denied the group's contributions. I just stated that information regarding the group's contributions relating to the bill was not found on the internet.

If the group did contribute, it would be a good idea for the group to publically express this. Its good PR for the group.

 

[FractionalTraveler]

Hmmmm....you sound like a competitor...

Not a competitor! Just another Tug user.....

 

[Judi Kozlowski]

House Bill 1001

I will thank LTRBA (all 65 members) when they can demonstrate their success rate on closings.

Until then, ARDA gets my contributions and applause.

Interesting comments. What does our success rate on closings have to do with this house bill?

 

[Judi Kozlowski]

House Bill 1001

-------------------------------------------------------------------------------------

Perhaps your research energy regarding the Florida legislature could be better utilized by instead providing us with a link or other useful, specific reference to the actual content and language of this new legislation?

Your recommended platitudes for ARDA seem (to me, anyhow) to be entirely unwarranted --- particularly if the new legislation turns out to be just noise and puffery (i.e., a loud bark, but with a toothless bite).

Forgive my cynicism, but you've provided nothing of any real substance here; just an unwarranted recommendation for undeserved praise for ARDA, to which (by your own words) you contribute money.

Imho, you fail the credibility test. Still, to repeat the point of my subject line...Where's the Beef ?

Here is the link to the Attorney General press release: http://www.myfloridalegal.com/newsrel.nsf/newsreleases/FDF9496C2C3B4A40852579BD000433AD

This legislation is an improvement to the industry's current situation.

Correct me if I am wrong but I don't believe the mission or goal of the LTRBA is to lobby goverment agencies. If so the group would be registered in the state of florida as such.

You need to read my post instead of getting defensive. I never denied the group's contributions. I just stated that information regarding the group's contributions relating to the bill was not found on the internet.

If the group did contribute, it would be a good idea for the group to publically express this. Its good PR for the group.[/QUOTE]

As President of LTRBA I would like to make a comment.

This is how LTRBA became involved in House Bill 1001. Two years ago when the bill was in
the beginning stages the bill contained wording that put resale Brokers in the same category with upfront fee companies and advertising companies.
Twenty two Brokers met in Vegas in 2010 at the ARDA convention to voice our opinion. ARDA did not want to listen to what we had to say. We went back to our respective locations and spent the next two years working on making our voices heard.
The final bill excludes licensed real estate agents and brokers. All of us already have laws in place that
govern our actions. In the meantime we have met with ARDA and are working with them
to make this a better industry. We are the answer to the resale question. We do not charge upfront fees. We treat every timeshare as a piece of real estate. We service our clients.
There are three platforms for selling resale timeshare.
1. Licensed real estate agents and brokers.
2. Advertising platforms. i.e Tug or other internet sites that charge less than $50.00 an ad.
3. Upfront fee advertising companies. These are companies that do outbound calling and normally inflate prices in one way or the other to collect a large upfront fee. Obviously we do not agree with this platform and do not embrace it.
I have been selling resale timeshare since 1993 at RE/MAX. I have not sold a house since 1993. I am consistently in the top five agents in commissions paid in my office.
I know that the Brokers I work with that are members of LTRBA work the same way I do. I am very proud of our organization and what we have accomplished in the past two years.
I know that the Department of Real Estate, the Department of Business and Professional Regulations, Division of Florida Condominiums, Timeshares, and Mobile Homes, Orlando Police Department and the Attorney General's office have appreciated our efforts to help stop the scams in this industry.
As far as being involved in the House Bill 1001 I was sitting in the House of Representatives committee room when the bill was presented. I am on record approving the bill as a representative of LTRBA.
We are working very closely with the Developers to make the resale market a better place. We are working with ARDA to better serve the timeshare community.

 

[Talent312]

As President of LTRBA I would like to make a comment.
This is how LTRBA became involved in House Bill 1001: Two years ago when the bill was in the beginning stages, the bill contained wording that put resale brokers in the same category with upfront fee companies and advertising companies.
Twenty two brokers met in Vegas in 2010 at the ARDA convention to voice our opinion. ARDA did not want to listen to what we had to say. We went back to our respective locations and spent the next two years working on making our voices heard. The final bill excludes licensed real estate agents and brokers. All of us already have laws in place that govern our actions...
As far as being involved in the House Bill 1001, I was sitting in the House of Representatives committee room when the bill was presented. I am on record approving the bill as a representative of LTRBA...

IMHO, TS consumers everywhere owe Judy K. (a respected TS-broker and TUG-poster) in particular, a debt of gratitude for the uncompensated work that she poured into the industry meetings and pushing for this essential piece of legislation. This was no small task, considering it was up against sentiment for deregulation of the industry.

BTW, this legislation and its progress thru the legislature has been reported in TUG by Brian and others before, so it should be no surprise to the regulars.

 

[ace2000]

Someone want to break this down a bit? What do you think it means to the average timeshare owner?

 

[Dave H]

Timeshare Industry Celebrates Passage of Timeshare Resale Accountability Act, Affords Consumer Protections
Timeshare Industry Supporting Similar Efforts in Other States


ORLANDO, FL – March 9, 2012 – Today, the American Resort Development Association (ARDA) and the American Resort Development Association Resort Owners’ Coalition (ARDA-ROC) celebrated the Florida Legislature’s passage of the Timeshare Resale Accountability Act, sponsored by Florida State Senator Andy Gardiner and Florida State Representative Eric Eisnaugle and supported by Florida Attorney General Pam Bondi.

“Florida has taken a giant step in providing consumer protection against fraudulent and deceptive business practices utilized by unsavory timeshare resellers,” said Howard Nusbaum, president and CEO of ARDA. “The timeshare industry plays an increasingly significant role in Florida’s recovering economy as tourism returns and grows in the state. ARDA and ARDA-ROC salute General Bondi, Senator Andy Gardiner, and Representative Eric Eisnaugle for their hard work that made this a reality,” Nusbaum continued.

The Timeshare Resale Accountability Act protects Florida consumers and helps put an end to deceptive marketing practices conducted by fraudulent timeshare resale companies that have been targeting consumers under the guise of offering a service to help sell their timeshare product. Specifically, timeshare owners will be given more information to make better decisions about purchasing timeshare resale services. For example, the legislation seeks greater transparency and will require, among other things, timeshare resale companies to disclose all terms and conditions of their business relationship with a consumer, provide for a right of rescission for consumers to cancel a contract for resale services, and impose penalties on companies who continue these deceptive practices.

Nearly 25 percent of all timeshare resorts in the United States are located in Florida, and these resorts represent a large and growing share of Florida’s tourism market. The Timeshare Resale Accountability Act is proactive legislation that is vital to ensuring the long-term health of a key sector of Florida’s tourism industry by protecting timeshare owners and legitimate businesses alike.

ARDA and ARDA-ROC are also supporting resale legislation in other states such as Colorado and Utah. Aimed at targeting fraudulent resale company practices, the legislation focuses on a different but equally important area of consumer protection related to services offered by timeshare transfer companies.

The timeshare industry continues to work to ensure transparency in both the buying and selling process. Over the years, ARDA and its members have provided information on the resale process to consumers, monitored resale company practices, held symposiums for its members, and created think tanks with industry leaders to discuss the best solutions to ensure consumer protections and adherence to resale standards.

For further information about the timeshare secondary market including resales, visit the ARDA-ROC Timeshare Resale Resource Center


Florida Timeshare Resale Legislation Update
Below please find the most up-to-date information on ARDA-ROC's partnership with the Florida Attorney General's office as we work to ensure a safe and healthy timeshare resale environment for both business and consumers in Florida.

Follow the progress of the Timeshare Resale Accountability Act as it makes its way through the state legislature with ARDA-ROC's timeline of Florida's Issue Briefs.


--------------------------------------------------------------------------------

October 4, 2011: Florida Attorney General Pam Bondi announces the proposed Timeshare Resale Accountability Act at a press conference in Tallahassee. The bill will be introduced during the state's 2012 legislative session. The bill sponsors are Republican Senator Andy Gardiner and Republican Representative Eric Eisnaugle. Click here for a copy of the press release.

October 4, 2011: ARDA CEO Howard Nusbaum releases statement of support applauding the proposed Timeshare Resale Accountability Act and General Bondi's efforts on behalf of business and consumers. Click here for the official statement.

October 4, 2011: Click here for remarks made by Jason Gamel, VP of State Government Affairs, on behalf of ARDA and ARDA-ROC during the press conference.

October 5, 2011: ARDA-ROC runs an ad in the Tampa Tribune thanking Attorney General Pam Bondi for her efforts in proposing the Timeshare Resale Accountability Act. Click here to view the full ad.

October 6, 2011: ARDA releases its official press release on the proposed Timeshare Resale Accountability Act. The press release applauds Florida Attorney General Pam Bondi for her efforts on the proposed act. It also includes details about how ARDA and ARDA-ROC developed and approved the Model Resale Act and the Timeshare Resale Resource Center to help pave the way for stronger consumer protections in the resale marketplace. Click here to view the press release.

December 12, 2011: The Timeshare Resale Accountability Act is assigned bill numbers: HB 1001 and SB 1408.

January 24, 2012: HB 1001, regulating timeshare resellers, unanimously passes its first committee in the Florida House of Representatives, the Business and Consumer Affairs Subcommittee, and is amended to CS/HB 1001. Click here for the full report.

January 26, 2012: The Senate version of the resale legislation, SB 1408, also unanimously passes its first committee in the Florida Senate--the Regulated Industries Committee. It is amended to CS/SB 1408. Click here for the full report.

February 8, 2012: CS/CS/HB 1001 is amended and passes unanimously out of the House Judiciary Committee. The bill's final committee referral is House Economic Affairs.

February 17, 2012: CS/CS HB 1001 passed it's final committee, House Economic Affairs, as a committee substitute with an amendment made by the bill sponser. Click here for more information on the amendment. The bill now heads to the full House for a vote.

February 23, 2012: CS/CS/CS/HB 1001 passed the House of Representatives unanimously and was sent to the Florida Senate.

February 28, 2012: CS/SB 1408 is scheduled to be heard in the Budget Subcommittee on General Government Appropriations--its final committee in the Senate.

February 28, 2012: The Senate Budget Subcommittee on General Government Appropriations amended and unanimously passed CS/CS/SB 1408. The bill now moves to the floor for a full Senate vote.

March 8, 2012: The Florida Senate passed the House version of the Timeshare Resale Accountability Act, CS/CS/CS HB 1001. The bill now goes to the Governor for approval or veto.

 

[Talent312]

Someone want to break this down a bit? What do you think it means to the average timeshare owner?

A Summary:
The bill requires the full and fair disclosure of terms, conditions, and services offered by timeshare resale service providers, which includes brokers and advertisers who offer unsolicited telemarketing, direct mail, or e-mail (with exceptions for sales by consumers and licensed real estate brokers).

The bill requires a description of any fees or costs, when such fees or costs are due, and the percentage of the number of timeshare resale interests sold or rented versus the number of timeshare resale interests listed for sale or rent. It prohibits those activities of a real estate broker unless they are a licensed real estate broker.

The bill prohibits timeshare resale service providers from:
-- Misrepresenting that they will provide any type of direct sales or resale brokerage services;
-- Misrepresenting that another person has a preexisting interest in the timeshare without providing identifying information for that person;
-- Representing that sales or rentals have been achieved or generated, unless the resale provider substantiates the statement at the time of representation;
-- Representing that a specific number of sales or rentals have been sold or rented without providing the consumer with the ratio or percentage timeshare interests advertised that have actually resulted in a sale or rental for each of the previous two calendar years;
-- Representing that a timeshare interest has a specific resale value;
-- Collecting any payment that exceeds an aggregate of total of $75 or more in any 12-month period without first receiving a written contract; and
-- Failing to honor a cancellation notice sent by the consumer timeshare reseller.

The bill requires the use of a written contract for any aggregate fee of $75 or more, which includes a conspicuous statement that the consumer has the right to cancel the contract for advertising services within 10 days after the date the contract is signed, and a full refund within 20 days of the consumer’s cancellation of the agreement, or five days after the consumer’s check has cleared, whichever is later.

If the contract for resale advertising services fails to comply with the provisions in the bill, the contract would be voidable at the option of the consumer for one year after the date it is executed by the consumer.

If a violation occurs, both the resale service provider and the person who actually commits the violation are liable for the violation. There is a civil penalty of $15,000 per violation in addition to the penalties and remedies provided in the Florida Unfair and Deceptive Trade Practices Act.
.

 

[ace2000]

I was hoping to get some analysis of what this means. Not just the legal verbage.

 

[TSToday]

Consumer Awareness Vs Consumer Protection

Timeshare fraud is raging out-of-control. The efforts made by Judi Kozlowski, Tom Tubbs and others to move consumer protection to the top of the agenda of state legislatures are to be lauded. Legislation is one issue. Enforcement is another issue. Consumer awareness is yet another issue.

There is reason to believe that laws alone will not stop fraud. The effectiveness of those laws will be determined by their enforcement and the rate of decline in consumer complaints. In spite of do-not-call regulations, our readers continue to complain about on-going telemarketing and email solicitations. Boiler room operations seem to be holding up pretty well and can move around fairly easily from state to state. They can go out of business on a moments notice and can easily change their identities or "adopt" the identities of legitimate companies.

Consumer awareness is vital to help prevent fraud before it happens. The industry and consumer protection agencies must adopt simple common sense guidelines that are easy for consumers to understand. Here's a start: Ignore all timeshare resale telemarketing, email and direct mail solicitations. Do not give out any personal information, sign anything or pay anything. If you are unable to resist, have an attorney contact the solicitor to handle the entire transaction on your behalf. Deal with licensed resale brokers and other trusted sources whose contact information can be fully verified.

In other words, what did your mother tell you? "Don't talk to strangers." All instances of timeshare fraud need to be reported by victims to state law enforcement, consumer protection agencies, the do-not-call registry and the Federal Trade Commission. The message needs to be posted on TUG, on other forums and through other outlets that can reach consumers.

If you would like to contribute to enhancing the message on consumer awareness, email TimeSharing Today at staff@tsoday.com. Subject: Consumer Awareness

 

[Talent312]

I was hoping to get some analysis of what this means. Not just the legal verbage.

Well, excuuse me! The summary I posted seemed to me rather self-explanitory.
But it is a lot of words... perhaps too many big words with lots of letters.

In Brief, it says to Timeshare Resellers (not licensed brokers + individual owners) that:
You cannot do business in the State of Florida unless...
-- (1) you say what percent of your listings result in sales;
-- (2) you do not tell folks that their TS is worth $'x' or you have a buyer/renter (unless you say who); and
-- (3) use written contracts with various provisions, including a right to cancel within 10 days.

 

[ace2000]

Well, excuuse me! The summary I posted seemed to me rather self-explanitory.
But it is a lot of words... perhaps too many big words with lots of letters.

In Brief, it says to Timeshare Resellers (not licensed brokers + individual owners) that:
You cannot do business in the State of Florida unless...
-- (1) you say what percent of your listings result in sales;
-- (2) you do not tell folks that their TS is worth $'x' or you have a buyer/renter (unless you say who); and
-- (3) use written contracts with various provisions, including a right to cancel within 10 days.

Don't take it the wrong way, I sure didn't mean anything.

So, what does it mean to the average timeshare owner or resale buyer? Will there be less inventory on ebay now? Will it cost more to close? anything else?