If you are buying a timeshare in Louisiana, it's important to learn about the laws that protect you, including a requirement that the timeshare developer provide you with a public offering statement and the right to cancel a timeshare contract. But you still need to be careful when purchasing a timeshare, and you should understand that if 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 Louisiana’s timeshare law.
A public offering statement contains very detailed information about the timeshare project and important matters you should consider when buying a timeshare interest. In Louisiana, the public offering statement must include, among other things, contact information for the developer, a description of the timeshare project and plan and the timeshare interest you are considering, and information about expenses, special fees, financing (if offered), and how to cancel the contract. (La. Rev. Stat. Ann. § 9:1131.9.2).
In Louisiana, you can cancel a timeshare contract without any penalty:
You can cancel a Louisiana timeshare contract by notifying the developer in writing of your intent to cancel (La. Rev. Stat. Ann. § 9:1131.10.1). The developer must provide the name and address to which you should mail any notice of cancellation (La. Rev. Stat. Ann. § 9:1131.9.2).
The notice is considered effective as of the date that it is sent (La. Rev. Stat. Ann. § 9:1131.10.1). (See Nolo’s article on how to cancel a timeshare contract for more information on how to rescind a timeshare purchase.)
The timeshare developer must refund all payments you made within:
Louisiana law prohibits timeshare salespersons from making misleading or false statements, advertisements, radio broadcasts, or telecasts when selling timeshares. Among other things, any statements or claims predicting specific or immediate increases in the value of a timeshare are prohibited (La. Rev. Stat. Ann. § 9:1131.12).
Timeshare sellers are notorious for getting people to attend sales presentations by offering free gifts or prizes such as free lodging or a vacation certificate. Sometimes, timeshare sellers then fail to provide the gifts or prizes to potential buyers after the presentation. Louisiana law bans this practice (La. Rev. Stat. Ann. § 9:1131.12(G)(3)).
In addition, a developer or timeshare salesperson that uses a prize and gift promotional offer in connection with selling timeshares must clearly disclose all of the following:
In Louisiana, the developer must manage all aspects of the timeshare plan. This includes promotions, advertising, contracts, and closings. If any violations of the law occur during any of these activities, the developer is legally responsible along with the timeshare salesperson or whoever actually committed the violation (La. Rev. Stat. Ann. § 9:1131.9.1).
If you take out a loan to purchase an interest in a deeded timeshare in Louisiana and fail to make your timeshare mortgage payments or keep up with the assessments, you will likely face foreclosure (La. Rev. Stat. Ann. § 9:1131.22). (In addition to monthly mortgage payments, timeshare owners are ordinarily responsible for maintenance fees, special assessments, utilities, and taxes, collectively referred to as “assessments.” For more information on timeshare assessment foreclosures, see Nolo’s article Can Timeshares Be Foreclosed for Nonpayment of Fees and Assessments?)
To find the Louisiana statutes, go to the State Legislature’s webpage at http://legis.la.gov. Click on “Laws,” then select “Table of Contents” (on the left side of the screen), and click on “Revised Statutes.” The relevant statutes are in Title 9.