What Is Timeshare Law?
Timeshare law refers to the legal regulations that govern the sale, ownership, and protection of timeshare buyers. These laws exist to prevent deceptive sales practices, protect consumers, and ensure transparency in timeshare contracts.
Understanding timeshare law is essential for anyone considering—or regretting—a vacation ownership purchase. While timeshares promise dream vacations, too many buyers end up trapped in high-pressure contracts filled with hidden fees and misleading claims. Fortunately, a growing body of legislation exists to hold resorts and sales teams accountable.
Why Does Timeshare Law Matter?
Timeshare law protects consumers from aggressive sales tactics and false promises. In the early days of timesharing, companies often marketed units that didn’t yet exist. Without regulation, resorts made risky promises at the buyer’s expense.
Eventually, consumer protection agencies intervened. Now, timeshare legal protections help ensure that buyers receive what they’re promised. These laws also regulate what sales teams can say and do, especially during high-pressure presentations. With the rise of misleading online marketing, these regulations are more important than ever.
What Do Timeshare Laws Regulate?
Timeshare law regulates several aspects of the sales process:
What salespeople can promise during presentations
Contract disclosure requirements
Rescission periods (cooling-off windows)
The marketing of timeshares as investments
When timeshare companies cross these legal boundaries, they open the door to lawsuits, fines, and contract cancellations. In many cases, experienced timeshare lawyers help owners challenge unfair terms or exit agreements entirely.
How Do Sales Teams Violate Timeshare Law?
Salespeople often receive high commissions, pushing them to say anything to close a deal. Often referred in the industry as “commission breath”. Some falsely promise:
Guaranteed availability
Profitable resale value
Profitable rental income
Exclusive booking privileges
In one notorious case, the Manhattan Club in New York sold timeshares to elderly buyers—then rented the units to the general public. Owners couldn’t make reservations, even after paying tens of thousands of dollars. After legal action, the New York Attorney General proved the resort violated timeshare law, misleading buyers and breaching contracts.
Timeshare Legal Loopholes and Consumer Rights
Many buyers don’t realize they have rights under timeshare law. If a salesperson makes false investment claims or withholds contract details, that may make the agreement voidable. Here are just a few red flags to watch for:
Promises of income from rentals or resale
Failure to disclose the right of rescission
Misleading “legacy” inheritance pitches
Undisclosed fee increases or special assessments
Understanding your timeshare legal rights can help you push back, especially with the help of timeshare lawyers who know how to navigate these complex contracts.
How Timeshare Companies Create Artificial Scarcity
Timeshare companies often promise availability at luxurious resorts—but later reveal that inventory is limited unless owners upgrade. This bait-and-switch tactic forces owners to spend more or accept less than what they were sold.
One client wanted a timeshare specifically for annual trips to Jamaica. Sales reps assured her access. But after signing, she found there were no resorts available there. By the time she learned the truth, her rescission window had closed. She accepted an “upgrade” and ended up in a dated unit overlooking a parking lot.
Deceptive tactics such as these may violate timeshare law, yet many owners never report them. That’s why it is critical for owners to educate themselves before signing a timeshare contract.
What Happens When Timeshare Law Is Enforced?
In 2016, Arizona’s Attorney General fined Diamond Resorts $800,000 for violating state timeshare law. The company misled buyers about rental income, fee increases, and resale opportunities. This case showed that timeshare legal action can produce real results.
Still, legal action isn’t easy. Many contracts contain arbitration clauses that make it increasingly more difficult to file lawsuits. But with the right documentation—and support from qualified timeshare lawyers—owners can challenge deceptive contracts and seek justice.
Protecting Yourself Under Timeshare Law: Key Takeaways
Timeshare law exists for a reason. Resorts can’t sell vacation dreams with false promises and expect to escape accountability forever. If you’ve signed a contract based on misleading claims, you might have legal grounds to cancel your timeshare.
At VOC, we help educate timeshare owners on their options to get out of a timeshare contract. If you feel trapped by deceptive sales tactics, you’re not alone—and you don’t have to navigate the process by yourself. Our team can provide you with trusted solutions, including attorney-based solutions with contracted timeshare lawyers and guide you toward a solution that works.
5 Responses
It is unfortunate that the timeshare industry has had such difficulties. Being an owner in two resorts has allowed us to travel to destination that we thought would be only in dreams. The system has to be understood and advance planning that provides the best results, that my wife knows very well and gets the best exchanges. I wish everyone would have had our experience with timeshares.
Best Regards.
I work for a vacation club/timeshare. We frequently make announcements in the sales area saying that we just made a sale to someone we didn’t to influence prospects into thinking more sales are made.
Sales reps are also required to “fill” the room by sitting at tables so real prospects think more people are in the room at a time.
Are these practices illegal? I am in Texas. Where can I find any law regulating these misleading practices?
Thank you for your help!
Gary Koeffler
I was conned into signing a timeshare with Hilton (HGVC). I actually feel embarrassed for being tricked and swindled. The same timeshare sells in eBay (by timeshare resale companies) for $1.00 ( one dollar). I don’t see how it can be legal to sell something with zero value for $25k. No, other industry does that not even used car sales man or big pharma. I bought because of the Hilton brand, he said it was a investment that he would buy the timeshare from me if i was not satisfied. I feel the timeshare contracts are void because they are not selling anything, it has a zero value. It’s much cheaper buying from outside from sites like Expedia etc
Ronaldo,
Did you ever receive resolution on this?
I live in a town in South Carolina that wants to prevent time-shares all together. The city attorney is dubious as to whether it would be legal. I’m a lawyer but do not specialize in this kind of law. I feel there must be some kind of city ordinance that can be enacted to prevent time-shares. Can anyone point me in the right direction?
Billy