If you purchase a timeshare in Hawaii and then get cold feet, Hawaii law provides you with a right to cancel the contract, but you'll have to act promptly. If the time allotted to cancel the purchase has expired and you don't make your timeshare mortgage or assessments payments, you may lose your timeshare through foreclosure.
Keep reading to learn about a few of the important features of Hawaii's timeshare law.
In Hawaii, you can cancel a timeshare contract within seven calendar days after you:
The timeshare disclosure statement must contain the following information (among other things):
You can cancel a Hawaii timeshare contract by:
Notice is considered given on the date that you mail or hand-deliver the cancellation (Haw. Rev. Stat. § 514E-8). (See Nolo's article on how to cancel a timeshare contract for more information on how to rescind a timeshare purchase.)
The contract cannot contain a waiver of your right to cancel (Haw. Rev. Stat. § 514E-11(7)).
Timeshare sellers are notorious for getting people to attend sales presentations by offering free gifts or awards. Hawaii has strict requirements and content restrictions on the use of promotional devices (including entertainment, prizes, gifts, food, drinks, games, transportation, luaus, ocean recreational activities, land recreational activities, aerial recreational activities, tours, or other inducements) in selling timeshares.
Verbal disclosure required. In Hawaii, timeshare salespeople cannot offer a promotional device without first telling you that the device is being used or offered for the purpose of selling you a timeshare (Haw. Rev. Stat. § 514E-11(2)).
Written disclosure required. A timeshare salesperson must also provide the following information in writing at the time he or she tells you about the prize:
It is also illegal for a timeshare salesperson to offer any tourist activity (for example, a helicopter tour or scuba diving trip) at less than the actual cost of the activity to induce you to purchase a timeshare plan or to attend a timeshare marketing event (Haw. Rev. Stat. § 514E-11(13)).
Additionally, under Hawaii law, a salesperson may not misrepresent:
In Hawaii, only licensed real estate brokers may complete timeshare sales (Haw. Rev. Stat. § 514E-2.5).
The timeshare developer must put any money you pay in connection with a timeshare purchase into an escrow account (Haw. Rev. Stat. § 514E-16).
It must release the funds:
In Hawaii, if you take out a loan to purchase an interest in a deeded timeshare and fail to make your mortgage payments, you will likely face foreclosure. Find out more about Hawaii 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." In Hawaii, you will also likely face foreclosure if you fall behind in the timeshare assessments (Haw. Rev. Stat. § 514E-29.) For more information on timeshare assessment foreclosures, see Nolo's article Can Timeshares Be Foreclosed for Nonpayment of Fees and Assessments?
You can find Hawaii's statutes by going to the Hawaii State Legislature's webpage at www.capitol.hawaii.gov. Click on "Table of Contents" in the Hawaii Revised Statutes box. The relevant statutes are in Title 28 (Property), Chapter 514E (Time Sharing Plans).