If you have purchased or are thinking of purchasing a timeshare in New York, it’s important to learn the answers to the following questions:
- How do I cancel a timeshare in New York?
- What disclosures are required in a timeshare purchase?
- What are the timeshare adverstising laws?
- If I stop making payments, what type of timeshare foreclosure procedure is used in New York (judicial or nonjudicial)?
Read on to find out some of the most important features of New York timeshare foreclosure and contract 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.)
Right to Cancel a Timeshare in New York
In New York, if you buy a timeshare and want to cancel the contract, you can do so within seven business days of signing the contract. This right of cancellation may not be waived. (13 CRR-NY § 24.3.)
Canceling Timeshares Located Outside of New York
New York law regulates any timeshare transaction that takes place in New York, even if the timeshare is out of state. If the law of the jurisdiction in which the timeshare property is located requires that the timeshare company provide you with a cancellation period longer than seven business days from the date of the contract signing, the longer time period applies (13 CRR-NY § 24.3).
How to Cancel a New York Timeshare Contract
If you want to cancel the purchase contract, you must mail a written notice of cancellation, postmarked within seven business days (or other applicable time period) of the date on which the contract was signed, to the sponsor or selling agent at the address indicated on the cover of the timeshare offering plan. If you do this, the seller must refund all payments within 30 days after it receives the cancellation. (13 CRR-NY § 24.3.)
(Learn more about cancelling a timeshare purchase in Nolo’s article How Do I Cancel a Timeshare Contract?)
Timeshare Public Offering Plan
The seller of a timeshare must provide the buyer with a contract that includes all of the specific details of the transaction (called a public offering plan), which also must be registered in the state. The public offering plan consists of a very detailed history of the project that contains important matters to consider when buying a timeshare interest, including (among other things):
- the seller’s identity
- how to cancel
- a description of the property
- floor plans
- an explanation of the basis for the allocation of shares or interests in common elements
- bylaws, and
- the declaration of covenants and restrictions.
Timeshare Advertising Laws
In New York, timeshare advertisements must contain the following statements: “This advertisement is being used for the purpose of soliciting timeshare sales” and “The complete offering terms are in an offering plan available from sponsor.” These statements must be included in, but are not limited to:
- pamphlets, and
- radio/television ads (13 CRR-NY § 24.6).
New York Timeshare Foreclosure Procedure
In New York, foreclosures are judicial, which means the lender (the plaintiff) must file a lawsuit in state court. (To learn more about the difference between judicial and nonjudicial foreclosure, and the procedures for each, see Will Your Foreclosure Take Place In or Out of Court?)
Learn more about the New York foreclosure process.
New York Timeshare Laws
New York timeshare law is found in Part 24 of Title 13 of New York Codes, Rules and Regulations (NYCRR). You can access the statutes by going to www.dos.ny.gov/info/nycrr.html and clicking on “Visit the Unofficial NYCRR Here.” Then click on Title 13 (Department of Law), then Chapter II (Securities Transactions and Personnel), then Subchapter B (Real Estate Syndicates), and Part 24 (Timeshare Offering Plans).
(For general articles on foreclosure in New York, visit our New York Foreclosure Law Center.)