Buying a timeshare is a lot like buying a house. When a consumer in Tennessee buys a timeshare, he or she is buying an interest in real property. Typically, a deed is recorded with the Register of Deeds in the county where the timeshare is found. Often, a timeshare owner becomes obligated for recurring dues, fees, and/or taxes. Upon the death of the owner, timeshares are sometimes passed to the owner’s heirs. In short, the purchase of a timeshare can be a significant transaction that can entail expenses long beyond the initial purchase price.
Occasionally, consumers are defrauded by timeshare developers and/or their sales agents. Fraud in the sale of a timeshare can take different forms—from misrepresentations by sales agents to improper gifts and promotions to failure to provide required disclosures. Fortunately, Tennessee law provides various protections for timeshare purchasers, including, but not limited to, the following: First, timeshare sales agents have to be licensed by the State of Tennessee. As licensees, they are held to a higher standard of conduct. Second, the sale of timeshares is governed by the Tennessee Timeshare Act. This important piece of legislation requires timeshare developers to make various disclosures to consumers. It provides purchasers with a rescission period. It regulates what sales agents can and cannot say. Third, timeshare transactions are covered by certain provisions of the Tennessee Consumer Protection Act. The TCPA, as it is sometimes referred to, protects consumers from unscrupulous sales practices. Fourth, Tennessee common law, or case law, protects those who are fraudulently induced to enter contracts. Fifth, the Tennessee Adult Protection Act can provide protections to elderly purchasers. Evaluating the voluminous paperwork, the numerous facts, and the various laws that apply to a timeshare transaction can be a complicated endeavor.
If you have any questions about a timeshare purchase, fraud in a timeshare sale, required disclosures, or rescission, feel free to contact me at the number below.
And now, the disclaimer. This blog is informational, and is not intended to provide legal advice. Every case is unique and requires individualized analysis. If you require legal counsel, make sure to seek the advice of a licensed attorney.