If you have purchased or are thinking of purchasing a timeshare in Colorado, or are facing a timeshare foreclosure, it’s important to learn the answers to the following questions:
Read on to find out some of the most important features of Colorado timeshare law.
(Be sure to check out Nolo’s Buying or Selling a Timeshare and Timeshare Foreclosures topic areas where you can find information about selling or donating your timeshare, timeshare foreclosures, options to avoid a timeshare foreclosure, and consequences of a timeshare foreclosure.)
In Colorado, if you buy a timeshare, you can cancel the contract within five calendar days after the sale. To cancel the purchase contract, you must notify the seller in writing by electronic means, mail, or hand delivery (Colo. Rev. Stat. § 6-1-703).
If you give notice that you want to cancel the contract, the seller must refund any down payment or deposit made pursuant to the contract within seven days after receiving the written notice of rescission (Colo. Rev. Stat. § 6-1-703).
Notice of rescission is considered given:
(Learn more about cancelling a timeshare purchase in Nolo’s article How Do I Cancel a Timeshare Contract?)
Timeshare salespeople are known for using hard-sell tactics and misrepresentations to get you to make a snap decision about buying a timeshare. Colorado law makes it illegal for a timeshare seller to misrepresent or make false statements regarding the investment, resale, or rental value of any timeshare. It is also illegal to misrepresent:
Owners often find it extremely difficult to sell their timeshares since there is virtually no after-market for them. As a result, scam artists have popped up who will falsely tell a timeshare owner that there is a ready and willing buyer for the timeshare -- but the timeshare owner must pay hundreds or thousands of dollars in upfront fees to process the transaction. After the timeshare owner pays the fees, the scammer often disappears. Colorado law provides protections to shield consumers from this type of resale scam.
Certain statements are illegal. Colorado law prohibits timeshare resellers from making false or misleading statements, including statements concerning:
Written contract required. Before providing resale services, a timeshare reseller must get you to sign a written contract. You can cancel the contract within five calendar days. If you cancel, the timeshare reseller must refund your money within seven days after receiving the written notice of rescission (Colo. Rev. Stat. § 6-1-703).
If you take out a loan to purchase an interest in a deeded timeshare and fail to make your timeshare mortgage payments or keep up with the assessments, you will likely face foreclosure. (In addition to monthly mortgage payments, timeshare owners are ordinarily responsible for maintenance fees, special assessments, utilities, and taxes, collectively referred to as “assessments.” Find out more in Nolo’s article Can a Timeshare Be Foreclosed for Nonpayment of Fees or Assessments?)
In Colorado, a timeshare foreclosure can be judicial or nonjudicial. (To learn more about the difference between judicial and nonjudicial foreclosure, and the procedures for each, visit Nolo's Judicial v. Nonjudicial Foreclosure page.)
To find the laws governing Colorado timeshares, go to http://www.lexisnexis.com/hottopics/colorado and click on “I agree.” Then click on the folder next to “Colorado Revised Statutes” to expand the statutes. The statutes describing timeshare law can be found in Title 6 (Consumer and Commercial Affairs). Expand the section entitled “Fair Trade and Restraint of Trade,” go to Article 1 (Colorado Consumer Protection Act), and then look in Part 7 (Specific Provisions).
(For general articles on foreclosure in Colorado, visit our Colorado Foreclosure Law Center.)