Utah Timeshare Foreclosure and Right to Cancel Laws
Learn about the Utah Timeshare and Camp Resort Act and Utah timeshare foreclosure laws.
The Utah Timeshare and Camp Resort Act provides protections to people who are buying timeshares in Utah. Among other things, the Utah timeshare law provides a right to cancel a timeshare contract, requires certain disclosures, and bans deceptive practices. Utah law also sets forth foreclosure procedures, which you should be aware of if you are facing a timeshare foreclosure.
(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 Utah
In Utah, you have the right to cancel a timeshare purchase so long as a cancellation notice is hand-delivered or postmarked (if sent by certified mail) not later than midnight on the fifth business day following the day on which the agreement is signed (Utah Code Ann. § 57-19-12).
If you cancel, the developer must refund your money within 30 days after receipt of timely notice of cancellation.
(Learn more about cancelling a timeshare purchase in Nolo’s article How Do I Cancel a Timeshare Contract?)
Disclosure About the Timeshare Project
Any person who sells or offers to sell a timeshare interest in Utah, or in a project located outside of the state, must provide to the prospective purchaser a written statement that gives a full and fair disclosure about the project. The statement must include information about (among other things):
- the purchaser's rights and obligations associated with the purchase of an interest in the project
- the name and address of the developer
- a statement about whether or not the developer has ever been convicted of a crime involving theft, fraud, or dishonesty or found to have engaged in the violation of any law designed to protect consumers
- a brief description of the interest which is being offered in the project
- a description of any provisions to protect the purchaser's interest from loss due to foreclosure on any underlying financial obligation of the project
- any event which has occurred as of the date of the offer which may have a material adverse effect on the operation of the project, andany other information necessary for the protection of purchasers.
The seller must provide the statement before the prospective purchaser signs an agreement to purchase an interest in a project or gives any item of value for the purchase of an interest in a project (Utah Code Ann. § 57-19-11).
Timeshare Sales Law
In Utah, timeshare projects must be registered with the state and only a registered salesperson may market them (Utah Code Ann. § 57-19-14 and § 57-19-4).
Misleading Statements and Deceptive Practices Are Prohibited
Utah law declares it a Class A misdemeanor to make statements or provide a timeshare contract that is untrue, incomplete, or misleading (Utah Code Ann. § 57-19-10).
Any material violation of the Utah Timeshare and Camp Resort Act constitutes an unfair or deceptive act (or practice) or unfair method of competition in the conduct of trade or commerce (Utah Code Ann. § 57-19-24).
Timeshare Foreclosure Procedure
If you take out a loan to purchase an interest in a deeded timeshare and fail to make your timeshare mortgage payments or keep up with the assessments, you will likely face foreclosure. (In addition to monthly mortgage payments, timeshare owners are ordinarily responsible for maintenance fees, special assessments, utilities, and taxes, collectively referred to as “assessments.” Find out more in Nolo’s article Can a Timeshare Be Foreclosed for Nonpayment of Fees or Assessments?)
In Utah, the foreclosure can be either judicial or nonjudicial. Judicial foreclosures are administered though the state court system, while nonjudicial foreclosures have no court supervision and are handled by a trustee. (Learn more about the Utah foreclosure process.)
(To learn more about the difference between judicial and nonjudicial foreclosure, and the procedures for each, visit Nolo's Judicial v. Nonjudicial Foreclosure page.)
Utah Timeshare Laws
You can access the Utah statutes by going to http://le.utah.gov. Hover over “Utah Code / Constitution” and click on “Title/Chapter/Section.” Look in Title 57 (Real Estate), Chapter 19 to find the Timeshare and Camp Resort Act.
(For general articles on foreclosure in Utah, visit our Utah Foreclosure Law Center.)