What is the cooling off period (recission period)?

[reyhu]

Hi,

Can anyone tell me if there's state law regarding recission period? I am thinking of buying in either Nevada, Arizona or Florida. Thanks

 

[DeniseM]

Your question indicates you intend to buy from the developer. Before you do that, please research resales. Buying resale can save you as much as 75%. Tell us what your vacation/timeshare goals are, and we can probably make some suggestions. Don't forget to take into consideration the cost of flying to out of state resorts.

 

[Dave M]

The period during which you can rescind a purchase from a developer is 10 days in FL, 7 days in CA and 5 days in NV. Most states don't have such cooling off periods for purchases on the resale market.

If you buy from a developer (generally not a good idea, as Denise states), you should ask questions about rescinding, ensuring that you know where in the contract the recision language and method of canceling is located.

 

[Dave M]

Oops! You said AZ. 7 days in AZ.

 

[Timeshare Von]

And most would give you the advice to avoid buying in Florida, in general.

 

[timeos2]

FL is to use as are most timeshares

And most would give you the advice to avoid buying in Florida, in general.

UNLESS you plan to use it. (Which is why you should be considering buying a week of timeshare in any case. If your goal isn't to use the resort but trade around the country or the world you should be looking at a multi-resort points system not a week of timeshare ownership.)

In any case 99% of the time it is far better to buy resale as you save plenty over retail purchase costs.

 

[Timeshare Von]

I think that when you consider your purchase price (even if it is via resale) plus the typically higher than average cost for MF's, many would say even to go and be in Orlando, purchasing there isn't the best way to go.

I don't know what the lowest MF/tax assessment in Orlando is right now, but assuming it is in the neighborhood of $600/year, I think most can typically find timeshare accommodations via RCI for a price less than that.

If I was a current owner in Florida, I would be very concerned about what's going on in the insurance industry there. Apparently the new governor has passed legislation on insurance companies that is creating an issue to do business down there. Just this past week, a couple of large carriers announced that they would be pulling out of the Florida market. I think as fewer companies underwrite there, the prices will go up even more than what has been forecasted as a result of the catestrophic losses suffered down there over the past two and a half years.

I wouldn't own in Orlando even if I were planning to go there every year (which we typically do). Just my opinion, your mileage may vary.

Yvonne

 

[Mel]

I think that when you consider your purchase price (even if it is via resale) plus the typically higher than average cost for MF's, many would say even to go and be in Orlando, purchasing there isn't the best way to go.

I don't know what the lowest MF/tax assessment in Orlando is right now, but assuming it is in the neighborhood of $600/year, I think most can typically find timeshare accommodations via RCI for a price less than that....

I wouldn't own in Orlando even if I were planning to go there every year (which we typically do). Just my opinion, your mileage may vary.

Yes, maintenance fees can be in the range of $600. But, if you plan on using your week yourself, why add in the uncertainty of getting your exchange and paying an exchange fee. If this were to be your only timeshare, those added fees would be close to $300. I don't know many resorts with $300 maintenance fees that can consistently exchange into the better Orlando resorts year in and year out.

Even as an owner of other week we exchange, our Orlando week still makes sense, when we save the $169 exchange fee.

Then also if you use any resort service with fees, owners often get discounts, which must also be considered in the equation. Restaurant discounts, golf discounts... Plus we can use the amenities of our resort whenever we want, whether we are staying there or not.

Reyhu, I would recommend buying a place you intend to use at least part of the time. But as others have suggested, you will want if possible to purchase resale rather than from the developer. Most of what the developer sales staff will tell you regarding resales is not true. There are a few benefits that might not extend to resale purchasers, but in most cases they are not worth the extra $10-15,000 it will cost you. In other words, by all means avail the developer of a tour, to see the property up close. But prepare ahead of time by familiarizing yourself with currently available resales. This put you in the seat of control - you will know the value of what they are offering, rather than then presenting you with a bunch of numbers to inflate that value.

 

[reyhu]

Thanks guys. Ok. I won't buy from developer. But buying privately can also be scary. I saw one for FF Santa Barbara that I thought was cheap with a real low MF, then I found out from TUG that it had been closed for over a year due to hurricane Wilma. The MF was low because the resort wasn't in operation, plus there may be additional special assessment!

If I am interested on points TS for points, is there a major advantage/disadvantage betwen Fairfield & RCI?

If I commit to buy one on the resale market, is there no law at all that allows me to recind my offer within a certain period?

 

[DeniseM]

Thanks guys. Ok. I won't buy from developer. But buying privately can also be scary. I saw one for FF Santa Barbara that I thought was cheap with a real low MF, then I found out from TUG that it had been closed for over a year due to hurricane Wilma. The MF was low because the resort wasn't in operation, plus there may be additional special assessment!

If I am interested on points TS for points, is there a major advantage/disadvantage betwen Fairfield & RCI?

If I commit to buy one on the resale market, is there no law at all that allows me to recind my offer within a certain period?

I don't think so, but with a resale, if you take your time and do your homework, you should have all the facts about what you are buying and not need to rescind. If you go through timeshare escrow, and there is something fraudulent about the deal, it will probably show up in title search.

Have you read the TUG info. about how to buy a TS and what to research? http://www.tugbbs.com/forums/announcement.php?f=13&a=6

Honestly, I think you are far more likely to be misled by a timeshare salesman than a resale owner!

 

[Jya-Ning]

If I am interested on points TS for points, is there a major advantage/disadvantage betwen Fairfield & RCI?

1) If needed, you can rent out FF's points or rent out internal FF reservation. You can not do that with RCI points.

2) FF's point is tied to a deed that governed by local government, and very hard to change the point value, RCI can adjust any point value as it sees fit.

3) internal FF exchange has some free exchange transactions. RCI points cost everytime you do a transaction.

4) Unless you buy retail or paying FF $2,395 to allow you put points in RCI point equivlent program, you can not access RCI point inventory and can not use the point to buy airline ticket ... But FF usually has higher maintanence, and thus usually the exchange for point to buy airline ticket is not favorable.

5) Try to cancel RCI reservation, and you pay dearly.

6) RCI point program has no control of its affliate resorts, thus, not all its inventories can be seen, or all its point resort will show at exact 10 month. FF has much better control over its internal resort, but has no control over its affliate/associate resorts. But RCI points has over 1000 ??? resorts (no idea what it maybe), and FF only has 60 resorts

7) RCI has no control over your resort, FF think they can control your resorts, and unless owner willing to, they can easily achieve that.

Actually, any point base program compare to RCI has these differences. I am pretty sure I miss a few differences here or there.

If I commit to buy one on the resale market, is there no law at all that allows me to recind my offer within a certain period?

There is law, but some may not follow it, and you may not know they did not. Much better is to do your due diligent before you agree to buy. Be aware that a few resorts are not very helpful to help clear the information. Probably because all their business model is built on hidding al the information so they can say anything they believe can help them sell you something. But in the end, remember, you are buying a real estate, and local government treat all owner equally. You will always enjoy the real estate you purchase and always enjoy any exchange company you want to do business with and they are willing to accept your resort.

Jya-Ning