If you are buying a timeshare in Kentucky, it's important to learn about the laws that protect you, including the right to cancel a timeshare contract if you act within a certain period of time. But you still need to be careful when purchasing a timeshare because if the time provided to cancel the purchase has expired and you don't make your timeshare mortgage or assessments payments, you may lose your timeshare through foreclosure. Read on to learn about a few of the important features of Kentucky’s timeshare law.
Cancelling a Kentucky Timeshare Purchase
In Kentucky, you can cancel a contract for vacation clubs (any organization that provides its members with any vacation, vacation plan, or related services at discount prices) and out of state timeshares within three business days from the date you sign the contract. You have up until midnight on the third business day to cancel the contract (Ky. Rev. Stat. Ann. § 367.397 and 201 KAR 11:180).
Kentucky law also provides a rescission period of five days that applies to timeshares in the state under its subdivided lands statutes. You have up until midnight on the fifth business day to cancel the contract (Ky. Rev. Stat. Ann. § 367.4771).
How to Cancel a Kentucky Timeshare Contract
To cancel a Kentucky timeshare contract, you must notify the seller in writing of your intent to cancel. The notice is considered given on the date that it is sent (Ky. Rev. Stat. Ann. § 367.397 and § 367.4771, 201 KAR 11:180).
It is generally best to send the cancellation notice by certified mail, return receipt requested. (See Nolo’s article on how to cancel a timeshare contract for more information on how to rescind a timeshare purchase.)
Timeshare Contract Refunds
The timeshare seller must refund all payments you made within 10 days after receiving your notice of cancellation (Ky. Rev. Stat. Ann. § 367.397, 201 KAR 11:180).
Disposing of a Kentucky Timeshare
If the cancellation period has expired and you’re having difficulty making your timeshare payments or just want to be relieved of your timeshare obligation, see Nolo’s article Options to Avoid a Timeshare Foreclosure to learn about different ways to dispose of a timeshare.
Kentucky Timeshare Foreclosures
Many timeshare purchasers take out a loan to finance the purchase of a timeshare. If the deadline to cancel the contract has passed and you don't make your timeshare mortgage payments, you could lose your timeshare through a Kentucky foreclosure. (Learn more in Nolo’s article Timeshare Foreclosures.)
In addition to monthly mortgage payments, timeshare owners are generally responsible for maintenance fees, special assessments, utilities, and taxes, collectively referred to as “assessments.” You will also likely face foreclosure if you fall behind in the timeshare assessments. (For more information on timeshare assessment foreclosures, see Nolo’s article Can Timeshares Be Foreclosed for Nonpayment of Fees and Assessments?)
Finding Kentucky’s Timeshare Laws
The relevant regulations governing timeshares can be found in the Kentucky Revised Statutes and the Kentucky Administrative Regulations. To find the statutes, go to www.lrc.ky.gov, click on “Kentucky Law,” and then “KY Revised Statutes.” Look in Chapter 367 (Consumer Protection). To find the relevant regulations, go to www.lrc.ky.gov/kar/frntpage.htm. Click on “Title” in the middle of the page and then look in Title 201 (General Government Cabinet), Chapter 11 (Real Estate Commission).