You are here:
- Home
- Shopping
- Vacation Homes/Time-Shares
- Time-Shares
- overnight stay penalty clause
Time-Shares/overnight stay penalty clause
Advertisement
Question
My husband and I bought a timeshare last week and have decided to cancel. We are sending a notice of cancellation within the 10-day cancellation period. But I noticed a clause that reads, "If purchaser stays overnight ar this resort during the ten day cancellation period and purchaser cancels this contract during the cancellation period, then the amount of up to $280 per night of lodging will be paid to Resort out of purchaser's deposit payment, as a contract benefit as reimbursement for the lodging."
Can they deduct this penalty? We had already paid for our week through an Air Force Vacation Rental coupon via RCI.
Sometimes, yes. It's a new an improved way to screw people. If you received a preferred rate based on the idea that you would attend a timeshare presentation, then they may be able to do it if you purchased and canceled (what's funny, if you did not purchase, they have to give you the preferred rate). It also depends on what state you live in - I know Florida allows this... Basically, they are trying to reduce their marketing costs.
Here's my take - believe me, you did great by canceling. I'm sure you realize you can get much better deals on the resale market. So, perhaps chalk this one up to a rather expensive learning experience.
- Ask a Question
| Rating(1-10) | Knowledgeability = 10 | Clarity of Response = 10 | Politeness = 10 |
| Comment | Thanks for your timely response. This is pretty much what I thought. My husband showed the contract to our lawyer and he said that since our stay was not a benefit of the timeshare presentation, this clause does not apply to us. We'll see what happens. | ||
Related Articles
Andreas Rossler
Expertise
I'm able to answer general questions on timeshares and specifically in regard to purchasing, renting or exchanging timeshares on the secondary or resale market and through the Internet. I have expert knowledge in sales, mechanics (how and why timeshares work), and timeshare exchanges. I am also well versed in timeshare financing and may be able to guide you to better financing or refinancing options for your timeshare purchase. If you ask questions of a legal nature, or those requiring tax advice - I may not be able to answer fully.
Experience
I have 10 years of industry experience in sales, management and processing. I'm currently CEO of Timeshare Village, a resource for timeshare owners and industry professionals.
Organizations
Mensa - Life Member
Publications
I have been interviewed by Channel 7 News in the Bay Area of California regarding my opinions on Worldmark, the Club timeshares as developed by Trendwest-Wyndham Resorts.
Education/Credentials
MBA - Master's in Business Administration
BS - Mathematics
BA - Economics
California Real Estate Broker
©2012 About.com, a part of The New York Times Company. All rights reserved.