Many timeshare owners have heard about legislation changes in the timeshare industry, but we find that many do not understand the changes in laws and regulations so we wanted to break it down to hopefully shed some light on these controversial changes. The laws unfortunately show the resort developers greed and their ability to flex their power and pull with Florida’s elected officials.
FL HB 7025
Florida House Bill 7025 places transfer restrictions on timeshare owners. An owner is still able to transfer their timeshare to someone else, there is just one giant problem however. Which the change and implementation of FL HB 7025, a timeshare owner would want to make absolutely sure that the new owner would continue to pay for the annual taxes and maintenance fee’s attached to the timeshare property.
The law states the following
“No person shall participate for consideration or with the expectation of consideration in any plan or scheme; a purpose of which is to transfer a consumer resale timeshare interest to someone that that person knows we should reasonably know; does not have the means ability or intent here for all assessments taxes and fees that are due or shall come do during that transferees ownership period. Notwithstanding any other penalty provided in this subsection any violation shall be subject to a civil penalty of not more than $10,000 per violation. The managing entity, may bring an action to enforce the provisions, and any such action the managing entity may recover it’s actual damages, plus attorney fees and court cost.
Why the change?
Timeshare owner families have been stuck where they can’t afford their timeshares anymore and can not afford the payments and maintenance fees.Because of this, in some cases companies have taken ownership of many timeshares by the owner transferring the timeshares to the company, which has no intention of ever paying for the timeshares. The company could go file bankruptcy, and take all the timeshares it owns down with it. Florida has the most timeshares than anywhere so this is a huge issue.
The timeshare developers want to find a way to end this practice and get rid of these companies.
Why isthis bad for the actual timeshare owner?
How would a timeshare owner know if someone has the means ability or intent to pay for it? If the owner is getting rid of their timeshare, that would mean they probably do not like their timeshare and therefore would not be selling or giving it to someone they do not know because they want to remain friends and family.
And most alarming, what does that “reasonably know” mean?
Timeshare Exit Companies are terrified of this law, because their potential for liability is massive. Each timeshare could be $10,000 fine + court fees etc. And with such a small profit margin for that side of the industry, it would be hard for them to want to take on the weight of the liability.