Contract Analysis: Timeshare Purchase Agreement
Comprehensive risk assessment with actionable recommendations
This Contract Requires Immediate Attention
Our analysis identified 11 significant red flags including perpetual financial obligations, uncapped fee increases, and heir liability clauses. We strongly recommend exercising your 10-day rescission right and consulting with an elder law attorney before making any decisions.
Bonuses: Rescission period (+3), Cost disclosure (+2)
Plain English Explanation
This timeshare contract locks you into paying maintenance fees forever, with no way to cancel or exit. The fees can increase every year with no cap, and when you pass away, your children will inherit this financial obligation whether they want it or not. The "resale assistance" they promise is essentially worthless—timeshares typically sell for $1 or less on the secondary market. The contract forces you into arbitration in Orlando, Florida if there's ever a dispute, making legal recourse extremely difficult for California residents. However, California law gives you 10 days to cancel for any reason. This is your most important protection—act now.
Critical Deadlines
Rescission Period Expires
You have until this date to cancel the contract and receive a full refund. After this deadline, you lose your right to cancel under California law. Send written notice via certified mail today.
Arbitration Opt-Out Deadline
If you don't cancel, you have 30 days to opt out of binding arbitration. Send written notice stating "I opt out of the arbitration provision" to preserve your right to sue in court.
First Payment Due
Initial down payment of $4,700 is due. If you cancel before rescission expires, this payment must be refunded within 20 days under California law.
Arbitration Analysis
Mandatory Binding Arbitration Detected
If you don't cancel the contract entirely, you have 30 days to opt out of arbitration. Send written notice via certified mail to the address in Section 14.2 stating: "I hereby opt out of the binding arbitration provision pursuant to the agreement dated [date]." Keep your certified mail receipt as proof.
Financial Analysis
Red Flags Identified
This contract contains no termination provision. You are obligated to pay maintenance fees forever, and this obligation automatically transfers to your heirs upon your death.
"I need a termination provision. What options do I have to exit this contract after 5 years? I cannot agree to a perpetual obligation."
Maintenance fees can increase without any limit. Industry data shows fees typically increase 5-8% annually, meaning your costs will approximately double within 10 years.
Your children or estate will automatically inherit this financial obligation. They cannot simply refuse it—they would need to go through a legal process that can take years and cost thousands of dollars.
The contract implies you can resell your timeshare, but industry data shows timeshares typically sell for $1 or less on the secondary market. The "resale assistance" program has a 0.2% success rate.
Disputes must be resolved in Orlando, Florida—over 2,500 miles away. This effectively prevents most California residents from pursuing legal action.
Beyond regular maintenance fees, the Association can levy "special assessments" for repairs or emergencies—potentially thousands of dollars with minimal notice.
Good Terms Found
California law requires a minimum 10-day "cooling off" period during which you can cancel for any reason and receive a full refund. This is your most important protection.
The contract includes a disclosure of first-year total costs including purchase price, closing costs, and maintenance fees as required by California law.
Recommended Actions
Exercise Your 10-Day Rescission Right Today
If you've already signed, you likely still have time to cancel. Send written cancellation via certified mail with return receipt immediately. Do not wait—this deadline is strictly enforced. Keep copies of everything.
Share This Report With Family
Before any decision, share this analysis with your adult children or trusted family members. The heir liability clause directly affects them, and they should be part of this conversation.
Consult an Elder Law Attorney
Given the perpetual obligation and heir liability clauses, this contract has serious long-term implications. An elder law attorney can explain your rights. Many offer free initial consultations.
File a Complaint if Pressured
If you felt pressured, misled about resale value, or not given adequate time to review, file complaints with your state Attorney General and FTC at reportfraud.ftc.gov.
California Legal Protections
California Financial Elder Abuse Law
If you're 65+ and were subject to undue influence or high-pressure tactics, California law (Welfare & Institutions Code §15610.30) provides strong protections including treble (3x) damages and contract rescission.
California Timeshare Act
Requires a minimum 10-day rescission period. During this time, you can cancel for ANY reason and must receive a full refund within 20 days. No cancellation fees can be charged.
Consumer Legal Remedies Act (CLRA)
Deceptive practices in timeshare sales may violate the CLRA, allowing for actual damages, punitive damages, and attorney fees. Misrepresentations about resale value are common violations.
Missing Clauses (Gap Analysis)
Standard consumer contracts should include provisions for termination in case of financial hardship, disability, or death. This contract has none, leaving you trapped regardless of life circumstances.
Fair contracts typically cap annual fee increases (e.g., "not to exceed 5% per year" or "tied to CPI"). This contract allows unlimited increases at the Association's sole discretion.
Many newer timeshare contracts include a developer buyback option after a certain period. This contract offers no such exit strategy.