The developer must provide a timeshare disclosure statement to you before you sign the timeshare agreement. The timeshare developer must also get you to sign an acknowledgement that you received the timeshare disclosure statement. (Tex. Prop. Code Ann. § 221.032).
The timeshare disclosure statement must include, among other things:
the type of timeshare plan offered
a description of the duration and operation of the timeshare plan
a description of the existing or proposed accommodations
a description of any existing or proposed amenities of the timeshare plan
a description of the method by which you will be able to schedule your use of the timeshare
a description of the method and timing for performing maintenance of the timeshare property
the projected common expense liability, and
copies of the declaration, bylaws, and articles of incorporation. (Tex. Prop. Code Ann. § 221.032).
Deceptive Practices Are Prohibited
Texas law prohibits timeshare developers or salespeople from engaging in deceptive trade practices. The following acts, among others, constitute deceptive practices under the law:
Failing to disclose important information concerning a timeshare interest.
Making false or misleading statements of fact concerning the characteristics of accommodations or amenities available to a consumer.
Predicting specific or immediate increases in the value of a timeshare interest without a reasonable basis for such predictions.
Making false or misleading statements of fact concerning the duration that accommodations or amenities will be available to a consumer.
Making false or misleading statements of fact concerning the conditions under which a purchaser of a timeshare interest may exchange the right to occupy a unit for the right to occupy a unit in the same or another timeshare property. (Tex. Prop. Code Ann. § 221.071).
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." To find out more, see Can a Timeshare Be Foreclosed for Nonpayment of Fees or Assessments?)
In Texas, the foreclosure can be either judicial or nonjudicial.
Talk to an Attorney
If you have questions about timeshare laws in Texas or want to learn about foreclosure, consider talking to a real estate attorney or a foreclosure attorney.