Indiana Timeshare Foreclosure and Right to Cancel Laws
Learn about Indiana timeshare foreclosure laws, right to cancel laws, and other timeshare contract laws.
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Indiana law provides timeshare purchasers with several important protections. For example, if you purchase a timeshare in Indiana, you can cancel the contract, but you’ll have to act very quickly. Additionally, Indiana law regulates timeshare exchange programs. Read on to learn more about the most significant features of Indiana’s timeshare law.
Right to Cancel a Timeshare in Indiana
In Indiana, you have the right to cancel a timeshare contract within 72 hours after signing the contract (not including Sundays or legal holidays) (Ind. Code § 32-32-3-7).
The right to cancel is not waivable and the purchase contract must include a statement about your right to cancel in boldface type on the signature page. It must also include a form that can be used to exercise the right to cancel (Ind. Code § 32-32-3-7).
How to Cancel
To cancel the contract, you may provide notice by:
- mail, or
- telegraphic communication (Ind. Code § 32-32-3-7).
The notice is effective on the date postmarked or when transmitted from the place of origin. If you give written notice of cancellation by a method other than mail or telegraph, the notice is considered effective at the time of delivery at the place of business of the developer or escrow agent designated in the notice of cancellation form (Ind. Code § 32-32-3-7). (Get more tips on how to cancel a timeshare contract.)
Right to Use the Timeshare
If a timeshare unit is not available at the time that you are entitled to use it, the developer is responsible for providing you with:
- a comparable unit for the period, or
- monetary compensation for the loss of use of the timeshare unit (Ind. Code § 32-32-3-9).
Timeshare Exchange Programs
One of the common features of timesharing is the ability to exchange your timeshare week (or other designated period of time) for someone else’s.
In Indiana, a developer or exchange company that offers an exchange program among timeshare owners must give the following disclosures (among others) to program participants:
- the name and address of the exchange company offering the exchange program
- a statement that your contract with the exchange company is separate and distinct from the timeshare contract (unless the exchange company and the developer or an affiliate of the developer are the same)
- a statement indicating whether your participation in the exchange program is voluntary or mandatory
- a complete and accurate description of the terms and conditions of your contract with the exchange company
- all limitations, restrictions, and priorities of the exchange program (including limitations on exchanges based on the seasons of the year, the size of units, or levels of occupancy)
- a statement indicating whether exchanges are arranged on the basis of available space and whether there are any guarantees of fulfilling specific requests for exchanges
- a statement indicating whether and under what circumstances you could lose the right to use and occupy a timeshare unit in any properly applied for exchange without being provided with substitute accommodations by the company
- a statement of the fees you must pay (including a statement indicating whether any fees may be changed by the exchange company, and if so, the circumstances under which those changes may be made), and
- the name and address of the site of each timeshare included in the program (Ind. Code § 32-32-3-12).
Indiana Timeshare Foreclosures
Often, timeshare purchasers take out a loan to finance the purchase of a timeshare. If you don't make your timeshare mortgage payments, you could lose your timeshare through foreclosure. (Learn more in Nolo’s article Timeshare Foreclosures.)
In addition to monthly mortgage payments, timeshare owners are ordinarily responsible for maintenance fees, special assessments, utilities, and taxes, collectively referred to as “assessments.” If you fail to keep up with the assessments, you will also likely face foreclosure. (Find out more in Nolo’s article Can a Timeshare Be Foreclosed for Nonpayment of Fees or Assessments?)
How to Locate Indiana’s Timeshare Laws
You can find the statutes governing Indiana timeshare transactions by going to the Indiana General Assembly’s webpage at www.in.gov. Hover over "Law & Justice," then click on “Laws & Administrative Code,” and then “Indiana Code.” Look in Title 32 (Property), Article 32 (Time Shares and Camping Clubs), Chapter 3.