Michigan Timeshare Foreclosure and Right to Cancel Laws
Learn about Michigan timeshare foreclosure laws and timeshare right to cancel laws.
In Michigan, timeshare laws are not very extensive. (State law focuses on condominiums, not timeshares.) Nonetheless, Michigan law does provide timeshare purchasers with some protections. For example, if you purchase a timeshare in Michigan, you have the right to cancel the contract, but the amount of time that you can do so is limited. Also, keep in mind that if you don't make mortgage payments or timeshare assessment payments, you could lose your Michigan timeshare to foreclosure.
Read on to learn more about the most important features of Michigan law that pertains to timeshares.
Your Right to Cancel a Timeshare Purchase in Michigan
In Michigan, you can withdraw (cancel) the timeshare purchase agreement for any reason and without penalty if the withdrawal is made:
- before the unit is conveyed, and
- within nine business days after you receive all of the required documents (such as the purchase agreement, the recorded master deed, and a disclosure statement about the project, among other things) (Mich. Comp. Laws § 559.184(2)).
The calculation of the nine-business-day period includes the day on which the documents are received, if that day is a business day (Mich. Comp. Laws § 559.184(2)).
How to Cancel
The method by which you should cancel is usually contained in the purchase contract itself. (See Nolo’s article on how to cancel a timeshare contract for more information on how to rescind a timeshare purchase.)
The developer must return all funds you paid within three business days after you withdraw from the purchase agreement (Mich. Comp. Laws § 559.184(4)(a)).
Disposing of a Michigan Timeshare
If the withdrawal 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.
Michigan Timeshare Foreclosures
Often, timeshare purchasers take out a loan to finance the transaction. If the deadline to cancel the purchase has expired and you don't make your timeshare mortgage payments, you could lose your Michigan 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?)
Typically, residential foreclosures in Michigan are by advertisement (that is, nonjudicial), but a timeshare foreclosure may be judicial or nonjudicial (Mich. Comp. Laws § 559.208(2)). (Read about Michigan’s Foreclosure Laws.) If the timeshare is foreclosed, the foreclosing entity (usually a condominium association) is entitled to reasonable interest, expenses, costs, and attorneys' fees (Mich. Comp. Laws § 559.208(2)).
How to Locate Michigan’s Timeshare Law
To read the statutes governing timeshares in Michigan, go to the official Michigan Legislative website at www.legislature.mi.gov and click on “Chapter Index” under “Laws.” The Michigan Condominium Act (which covers timeshares) can be found in Chapter 559.