Truthful Timeshare Cost Disclosure - need input! V2 updated

[tha]

Add a statement regarding income potential, for example:

"This purchase has no income potential because any form of renting is banned".

 

[LannyPC]

Add a statement regarding income potential, for example:

"This purchase has no income potential because any form of renting is banned".

How is it banned? I thought TSs could legally be rented out, provided they were not acquired via an exchange such as through RCI.

Maybe a statement such as "Being able to find a renter for your week is not easy." Or "Recovering the full costs of your maintenance fees from a rental is not easy."

 

[rwyeager]

Some form of merger clause such as this have been standard in timeshare contracts to protect the developer for more than 40 years. It has done little to prevent salespeople from making verbal promises and buyers from believing the promises.

Oral Promises vs. Written Contracts in Timeshares | Aaronson Law Firm

Understanding the crucial differences between verbal promises and written contracts in timeshare agreements can protect buyers from unexpected risks.

aaronsonlawgroup.com

Perhaps buyers should consider recording the presentation

 

[DavidBr]

So, one of the more interesting (and possible IMO) suggestions from the newly proposed Timeshare Transparency Act/Law is the creation of a 1 page disclosure document to be provided to a new buyer prior to signing the contract.

What all would you like to see in it! While its easy to throw everything on the wall and see what sticks, this really does need to be a single page to ensure it doesnt wind up "lost in the shuffle" if it became another lengthy wall of text or similar like the rest of the contract.

Here is an example template to get started, id be curious what you would add/remove/change if YOU were sitting at a sales presentation and given this document.

updated to v2 this afternoon (2/24/26)


Truthful Timeshare Disclosure Form

1. WHAT YOU ARE PAYING TODAY​

Description	Amount
Retail Purchase Price	$__________
Discounts Applied	$__________
Closing / Admin Fees	$__________
Total Purchase Price	$__________

Financing Terms	Amount
Down Payment	$__________
Amount Financed	$__________
Interest Rate (APR)	_______%
Loan Term	_______ Years
Monthly Loan Payment	$__________
Total of Payments (Principal + Interest)	$__________
Total Interest Paid	$__________

2. WHAT YOU WILL PAY EVERY YEAR​

Recurring Obligation	Current Amount
Annual Maintenance Fee	$__________
Club / Program Dues	$__________
Property Taxes (if separate)	$__________
Total Current Annual Cost (not including loan payments)	$__________

⚠ Important: These fees are NOT fixed and typically increase over time.

3. 5 YEAR OWNER FEE HISTORY​

Year	Total Annual Fees
20__	$__________
20__	$__________
20__	$__________
20__	$__________
20__	$__________

Average Annual Increase Over Past 5 Years: _______%

Special Assessments in Past 5 Years:
☐ None
☐ Yes – Total $__________

Explanation for Assessments:

4. OTHER POSSIBLE COSTS​

You may also pay:

• Reservation / Transaction Fees
• Exchange Company Membership (e.g., Interval International or RCI)
• Guest Certificate Fees
• Upgrade or Conversion Fees
• Transfer Fees if you sell
• Deedback / Exit Fees (if available)
• Special Assessments for repairs or renovations

5. 10-YEAR COST PROJECTION​

Category	Estimated 10-Year Total
Purchase Price	$__________
Total Interest (if financed)	$__________
10 Years of Maintenance Fees*	$__________
Taxes & Dues	$__________
Estimated 10-Year Total Cost	$__________

*Projection assumes annual fee increase of _______%.

6. IMPORTANT DISCLOSURES​

• This ownership is perpetual.
• Annual fees will continue indefinitely.
• Fees may increase due to inflation, insurance, property taxes, or board decisions.
• Special assessments may be charged at any time.
• The developer does not guarantee resale value.
• Comparable ownerships may be available on the resale market at significantly lower prices.

7. BEFORE YOU SIGN​

☐ I understand the full retail price.

☐ I understand the total financing cost and interest.

☐ I understand annual fees can increase.

☐ I understand this may be a long-term or perpetual obligation.

☐ I understand resale value is not guaranteed.

☐ I understand that NOTHING said verbally during the presentation will supersede anything written into the signed sales contract

☐ I understand that I have ____ calendar days from today to legally cancel (rescind) this contract without penalty, and I have received written instructions explaining how to do so.

How about a disclosure of the salesperson’s commission as a percentage of the sales price? Additionally a disclosure of any non cash or deferred compensation for making the sale?

 

[TUGBrian]

doubt there would be a lick of a chance of getting that in (being realistic)...but i like it!

 

[BJRSanDiego]

This is a great bunch of ideas.

But, I'm wondering if this were filled out and a (lowly) timeshare sales person signs it, would it be legally binding? I'm guessing that the sales person probably doesn't have the authorization or authority to legally bind the company. It could possibly still be used to show fraud or a misleading by the sales person to possibly nullify the contract. So, it is still useful.

When I was still working and having to sign contracts, I could only sign certain types of contracts and only up to my $ authority. When I signed contracts over my limit, I had to have written (and in my case temporary) authorization from the President.

 

[dioxide45]

This is a great bunch of ideas.

But, I'm wondering if this were filled out and a (lowly) timeshare sales person signs it, would it be legally binding? I'm guessing that the sales person probably doesn't have the authorization or authority to legally bind the company. It could possibly still be used to show fraud or a misleading by the sales person to possibly nullify the contract. So, it is still useful.

When I was still working and having to sign contracts, I could only sign certain types of contracts and only up to my $ authority. When I signed contracts over my limit, I had to have written (and in my case temporary) authorization from the President.

I would expect the disclosure to be prepared from the contract details and other information the company has that is pertinent to the timeshare and the transaction. I doubt each one would be completed manually by the timeshare sales person. It would just print out with the other hundred pages of stuff someone has to initial or sign. Though most signings are done on a tablet these days and they flip through pages so fast no one has time to look at or read anything. This disclosure won't change that.

 

[geist1223]

Has anyone read the entire Contract, word for word, prior to signing? Has anyone proposed changes, additions, deletions, etc to the proposed Contract?

If the Developer refuses to change even a single word - Is this a Contract of Adhesion?

 

[iluvpitz]

thats not a terrible idea!

I put them at the bottom as it would be right on the signature page (sorry, I actually cut off the signature part which would include a line for the owner and a line for the salesperson).

I came here to read and say this exact thing. Additionally, if there were a fill in _____________ page number/section for the EXACT verbiage of said rescinding process. We all know that it must be followed to the letter or it won't be actualized. That information right there saved my husband and me $33k in 2021. We postmarked on the last day and were released.
And later purchased from someone on Tug

 

[tha]

How is it banned? I thought TSs could legally be rented out, provided they were not acquired via an exchange such as through RCI.

Maybe a statement such as "Being able to find a renter for your week is not easy." Or "Recovering the full costs of your maintenance fees from a rental is not easy."

I'm not saying renting is banned anywhere it is just a limiting example of what a potential income disclaimer could say. It is important for TS owners to think of their ownership as an asset. Believe me, Marriott is not investing in anything with a 0 or negative ROI. Why should owners think of TS companies as charities?

That could probably be a separate thread "Can a TS be an asset?"

 

[Double U]

Not a question about the form being discussed here, but regarding the legislation itself. Are there provisions for any kind of Ombudsman, or neutral party to resolve resolve concerns fairly?

 

[TUGBrian]

Not a question about the form being discussed here, but regarding the legislation itself. Are there provisions for any kind of Ombudsman, or neutral party to resolve resolve concerns fairly?

i would be shocked if a sales contract in any state did not already include the language for how a dispute would be handled...id also expect this section to vary wildly (but always likely be in favor of the developer, vs the customer).

I am not aware of any proposal to address this specific subject though no.

 

[Double U]

i would be shocked if a sales contract in any state did not already include the language for how a dispute would be handled...id also expect this section to vary wildly (but always likely be in favor of the developer, vs the customer).

I am not aware of any proposal to address this specific subject though no.

Thanks for the feedback. I just think Federal legislation would provide consistency. Look at the recession period which varies by state, it's crazy to understand. Thanks for the work you are doing!!!