The government in Alberta, Canada, is tightening down on the timeshare industry in order to provide more protection prospective timeshare owners.
As of November 1, those involved in timeshare sales will be required to obtain a $200 license issued by the government and clearly disclose their terms and conditions. They will also be required to post security. The parameters of the security have not been fully determined yet.
The current timeshare regulations are over 10 years old and the timeshare industry has endured many changes. The new regulations are up-to-date with the timeshare industry’s current practices and will ensure that consumers are well-informed of all the details before purchasing a timeshare.
“The past recession had a significant downward impact on both developers and buyers of vacation property, condo-hotels and timeshares, and I believe the government is trying to provide greater protection for the consumer,” says Chris Wein, president of Multifamily Operations at Calgary-based UBG.
He goes on to say that the government is simply updating its regulations to match the rest of the jurisdictions in North America.
In addition to the new license and security provisions, other stipulations include:
- Requiring timeshare developers and sellers to fully disclose their terms and conditions, including a full description of the timeshare property, the time period the owner can use the property, the number of points provided under any applicable points programs and the total cost to the buyer including all fees.
- Allowing buyers to cancel their contract within a year if the timeshare does not meet the new requirements.
- Ensuring the timeshare owner has use of the property even if it is refinanced by the developer.
- Preventing the timeshare businesses from misleading sales tactics, including misrepresenting the availability of prizes, gifts, discounts, etc.
You can read more on this story in the Calgary Herald.
