After signing a legal documentfor thepurchase of a time share, is their a grace period to change your mind?

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After signing a legal documentfor thepurchase of a time share, is their a grace period to change your mind?

Purchased in NV; I live in WA.

Asked on January 9, 2011 under General Practice, Nevada

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Timeshare mortgages are very similar to regular mortgages - there should be something called a "rescission notice" in every contract. Such a notice details your right to rescind, revoke or cancel the contract.  Even if a copy of a rescission notice is not included with the contract, you still have the right to cancel.  You must carefully read your contract; it will include the procedure to follow to rescind.  Note:  These procedures must be followed carefully if your rescission is to be deemed legal and binding.

Most states have enacted special laws to cover timeshare contracts. First of all, there is a time deadline to change your mind. It can be as little a 3 days up or up to 6 days or more. It's important to be aware that different states have different timelines.  My understanding is that in NV, there is a 5-day right of recission for timeshare contracts.

Additionally, you need to pay careful attention to the wording of your contract.  Some time restrictions are according to calendar days; some are according to business days.  In some states, the day you signed the contract is counted as a day; in others it is not. Typically Sundays and public holidays are not counted, but Saturday may be. If you have any doubts about the time period in which you have to rescind your contract, always calculate sooner rather than later.

Finally, the method used to send the rescission notice is important.  Again, read your contract. Typically, you cannot e-mail or phone in a cancellation. Whether or not required, it is a good idea to sent your notice by Certified Mail, Return Receipt Requested. This will give you a paper trail should you need it in the future.  Also, it's a good idea to make copies of all paperwork.

If you still have questions, you should contact an attorney directly for help with this.  The clock is running.

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Unfortunately, no--there is no grace period to change you mind about this kind of purchase--or really, almost any kind of purchase. When acquiring a mortgage to purchase a residence, there is a short grace period during which you can rescind the mortgage--though that may still leave you liable on the purchase contract unless the contract itself had a finance or mortgage contingency whose terms would allow you out (many finance contingencies would NOT let you out, btw, if you were approved but chose to not take the mortgage). Therefore, in this situation, you are very likely obligated on the purchase; this is why to make sure you are happy with a contract or purchase before signing the contract.


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