Oregon law protects timeshare purchasers by providing a right to cancel a timeshare contract and prohibiting any timeshare developer or salesperson from using advertisements that include false or misleading statements, among other things. Oregon law also provides that, if you don't make your timeshare mortgage or assessments payments, the timeshare is subject to foreclosure. Read on to learn about a few of the important features of Oregon's timeshare law.
In Oregon, a timeshare purchaser can cancel the contract within five calendar days from the date the purchaser signs the first written offer or contract to purchase (Or. Rev. Stat. § 94.836(1)). However, if the developer does not provide an address to the purchaser for cancellation purposes, the cancellation period does not begin until the developer provides the purchaser with developer's address (Or. Rev. Stat. § 94.836(2)).
To cancel, the purchaser must give written notice to the developer at the developer's address (Or. Rev. Stat. § 94.836(2)). The notice of cancellation does not need to be in a particular format. The notice is sufficient if it indicates the intention of the buyer to cancel the contract (Or. Rev. Stat. § 94.836(3)). See Nolo's article on how to cancel a timeshare contract for more information on how to rescind a timeshare purchase.
Upon receipt of a timely notice of cancellation, the timeshare developer must immediately return your payment (Or. Rev. Stat. § 94.836(5)).
If the cancellation period has already expired and you're having difficulty making your timeshare payments (or just want to be relieved of your timeshare obligation), see Nolo's article Options to Avoid a Timeshare Foreclosure to learn about different ways to dispose of a timeshare.
The timeshare developer must put any money you pay in connection with a timeshare purchase into an escrow account with an escrow agent (Or. Rev. Stat. § 94.873(1)).
It must release the funds:
(The purpose of the escrow account is to protect your right to a refund.)
Oregon law makes it unlawful for a timeshare developer or salesperson to:
In Oregon, the Real Estate Commissioner may examine a timeshare plan to be offered for sale and make a public report of the findings. The timeshare developer must give a copy of the public report to the prospective purchaser before signing the contract (Or. Rev. Stat. §94.829).
If you are buying a timeshare, be sure to carefully examine the public report before the five-day cancellation period ends.
Oregon law prohibits a timeshare developer (or its agent or employee) from putting false or misleading statements, pictures, or sketches in advertisements, radio broadcasts, or telecasts. (Or. Rev. Stat. § 94.945).
In Oregon, 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 Oregon 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 Oregon, you will also likely face foreclosure if you fall behind in the timeshare assessments (Or. Rev. Stat. § 94.856). For more information on timeshare assessment foreclosures, see Nolo's article Can Timeshares Be Foreclosed for Nonpayment of Fees and Assessments?
To find the statutes that govern timeshare transactions in Oregon, go to the Oregon State Legislature's webpage at www.oregonlegislature.gov. Hover over "Bills and Laws" and then click on "2011 Oregon Revised Statutes." The relevant statutes are in Chapter 94. You can find Chapter 94 by clicking on the "+" next to "Volume 03."