The Connecticut Time Share Act provides protections to people who are purchasing timeshares in the state. Under the Act, the developer must give you certain disclosures before you buy a timeshare and you have the right to cancel the timeshare contract (for a limited period of time), among other things. However, if you don't make your timeshare mortgage payments or pay the assessments, the timeshare is subject to foreclosure.
Read on to find out some of the most important parts of Connecticut's timeshare law.
In Connecticut, before a prospective purchaser signs a timeshare agreement, the developer must provide a disclosure statement that includes the following information (among other things):
In Connecticut, you have five calendar days to cancel a timeshare agreement after:
The right of cancellation may not be waived. If the developer puts a waiver in the contract, you may void the contract (Conn. Gen. Stat. § 42-103pp (b)).
To cancel the contract, you can:
If you cancel, the developer must refund your money no later than:
Timeshare salespeople are well known for utilizing hard-sell tactics to get you to make a snap decision about buying a timeshare.
Timeshare resellers can be even more unscrupulous. Owners often find it extremely difficult to sell their timeshares since there is virtually no after-market for them. As a result, scam artists have popped up who falsely tell timeshare owners that there is a ready and willing buyer for the timeshare -- but the timeshare owners must pay hundreds or thousands of dollars in upfront fees to process the transaction. After the timeshare owner pays the fees, the scammer often disappears.
Connecticut law provides protections to shield consumers from deceptive sales practices and resale scams.
A timeshare resale broker must be licensed as a real estate broker (Conn. Gen. Stat. § 42-103bbb(a)(1)).
Connecticut law prohibits timeshare sellers and resellers from (among other things):
Timeshare sellers are notorious for getting people to attend sales presentations by offering free gifts or awards. Under Connecticut law, an advertisement that contains a promotion in connection with the offering of a timeshare interest must include:
Promotion rules must be disclosed. If a promotion uses free offers, gift enterprises, drawings, sweepstakes, or discounts, the rules of the promotion must be disclosed and must include:
(At least one of each prize featured in a promotion must be awarded by the day and year specified in the promotion (Conn. Gen. Stat. § 42-103ll(e)).
A written disclosure about the prizes is also required. Any promotion offering prizes must disclose in conspicuous type:
The disclosure must be provided to the potential purchaser in writing or electronically:
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 (Conn. Gen. Stat. § 42-103yy). (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?)
To find the statutes that govern timeshare transactions in Connecticut, go to the Connecticut General Assembly webpage at www.cga.ct.gov and click on "Statutes" and then "Browse Statutes (Rev 1/1/13)" to find the Table of Contents. Look in Title 42, Chapter 734b.