How to back out of resale?

[yyzgurl]

My SIL is in the process of buying resale. She was wondering how long after signing the papers would she have to back out of the sale. Also, would she lose the deposit that is held in escrow? She is planning on using the Timeshare Store.

 

[dznyntnh]

Not sure if it's the same thing, but the recision period for mortgages and home equities is usually three business days.

 

[lllovell]

hmmm - not that we aren't a WELL rounded and knowledgable bunch, but your SiL would be MUCH better off asking the broker directly. Misinformation here could really mess her up.

 

[T.E. Yeary]

Unlike general real estate, Florida lawmakers gave all Florida timeshare buyers, resales or otherwise, a 10 day right of rescission. The buyer may cancel for any reason. All Florida timeshare contracts must have the right of rescission clause in the contract to be legal. If a developer wants to give you 1 month or 1 year right of rescission, that is their perrogative. The contract must state what happens to the buyers deposit if the buyer goes beyond the 10 days. Most contracts, ours included, state that the buyer loses the deposit if they go beyond the 10 days and that this deposit is split evenly between the seller and broker, except that the broker cannot receive more than he would have had the contract gone through. The Florida lawmakers realized that the seller may be put under a lot of pressure when a cancellation happens and should be entitled to the deposit. The seller may be in divorce, probate, financial problems, or any number of situations that cause him stress, like spending the money before he gets it. Don't expect a rescission period when buying a house here though, there isn't any.
Thomas E. Yeary
Owner/Broker The Timeshare Store, Inc.

 

[Dean]

Mr. Yeary is right to a degree. I've read FL statute 721 and it doesn't separate between a private seller and a developer. However one could argue that no private seller could meet all the rules posted, which they can't, thus it doesn't apply. The office in Tallahassee currently interprets it as Mr. Yeary states and if the clause is not included in the contract, the buyer has a year to back out even after closing. Having been involved in writing rules to interpret the statutes in FL, I understand how this could work either way. Of course the buyer would have to proceed legally to enforce the issue.

It's 10 days from the original signing from what I understand, not closing.

 

[RobDoc]

... I've read FL statute 721 and it doesn't separate between a private seller and a developer. However one could argue that no private seller could meet all the rules posted, which they can't, thus it doesn't apply. ...

Why would a private seller be unable to comply with the rules issued by the state and why should they be exempt from a rule designed to protect the buyer ?

 

[Dean]

Why would a private seller be unable to comply with the rules issued by the state and why should they be exempt from a rule designed to protect the buyer ?

Go read the statutes, they are very complicated. I did review them again just now and it would depend in part on how many timeshare the person has owned. If it's 7 or more, a totally different set of rules would apply than if it's less. My point was that it would be difficult to comply with all the requirements in the chapter thus making it difficult to enforce if one wanted to push it. As I noted, BPR does hold that the rule applies to individuals as well. But if it's past a year, then the way I read it, it would be beyond the statute of limitations.

To correct a portion of my earlier statement, it does qualify the info for an individual selling, I had remembered that somewhat incorrectly and for that I apologize and thus correct my statement.