I have increasingly been asked to review transactions or relief offers involving time shares and and vacation properties where buyers find themselves suffering buyers’ remorse. Many different issues have arisen over the years, but a common theme is that the contracts strongly favor the seller and provide challenges to relief for buyers, and the buyers didn’t get what they were promised. It is important to understand all contracts, including the choice of law (i.e. does Florida law apply) and termination options. It is also important to research the company, including the state in which its corporate offices are located, to determine whether the attorney general or consumer protection agency have complaints involving the company.
Additionally, in New Jersey consumer protection laws apply to individuals buying land out of state, such as investment, vacation, or retirement properties. Specifically, the Planned Real Estate Full Disclosure Act and the New Jersey Real Estate Timeshare Act have specific provisions intended to protect New Jersey residents targeted for the purchase of an interest in certain real estate.
That said, an ounce of prevention is worth a pound of cure. Before purchasing an out-of-state property, review the Department of Housing and Urban Developments “Do’s and Don’ts” at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/rmra/ils/ilsdont. And, as always, it is best to have all contracts reviewed by an attorney prior to signing.
© Shanahan & Voigt, LLC 2014
BE ADVISED that these comments are not legal opinions and are not to be relied upon as legal advice. If you need legal advice, contact your county bar association; most of which have referral services.