In Delaware, if you purchase a timeshare and then change your mind, you have the right to cancel the contract, but only for a few days. Also, the timeshare seller must disclose certain information to you before you sign the purchase contract. Read on to find out more about the most important features of Delaware's timeshare laws.
In Delaware, the right to cancel a timeshare contract expires at midnight on the fifth business day following the date on which the contract was signed (Del. Code Ann. Tit. 6, § 2824(a)).
The right to cancel cannot be waived. Under Delaware law, it is illegal for a timeshare seller to attempt to obtain such a waiver from you (Del. Code Ann. Tit. 6, § 2824(b)).
To cancel the purchase, you must mail notice of your intent to cancel by certified mail to the timeshare seller at the address shown in the timeshare contract (Del. Code Ann. Tit. 6, § 2824(c)). (Learn more about cancelling a timeshare purchase in Nolo's article How Do I Cancel a Timeshare Contract?)
If you cancel, the developer must refund your money within 15 days (Del. Code Ann. Tit. 6, § 2824(d)).
In Delaware, a timeshare seller must provide you with a written statement that gives certain disclosures about the project before you sign the contract and no later than the date shown on the contract (Del. Code Ann. Tit. 6, § 2823).
The statement must include the following information (among other things):
Timeshare sellers are notorious for getting people to attend sales presentations by offering free gifts or prizes. Under Delaware law, if the seller offers any item of value as an inducement to get you to attend a timeshare presentation, the seller must disclose in writing the following information:
If you take out a loan to purchase a deeded timeshare and subsequently default on your payments or fail to 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?)
To find the Delaware statutes that pertain to timeshares, go to http://delcode.delaware.gov. The relevant statutes can be found in Title 6, Chapter 28.