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Unconscionability in Timeshare Contracts
Unconscionable timeshare contracts are common among timeshare companies. Our highly experienced timeshare lawyers can assist you with these issues. Contact Timeshare Defense Attorneys today!
What Are Grounds of Unconscionability in Timeshare Contracts?
There are several grounds for unconscionability in timeshare contracts. But first, let us understand what this legal jargon means for the average timeshare owner looking to extricate themselves from a timeshare contract.
A contract is most likely deemed unconscionable if it is oppressive and unfair to one of the parties in a manner that suggests abuse of power by the other party. Such contracts demonstrate both unfair bargaining and substantive terms.
Generally, each party to an agreement is deemed to have agreed to the terms of the agreement. “Caveat subscriptor” is a Latin maxim that means “let the signer beware.”
However, the doctrine of unconscionability offers courts a departure from this strict interpretation of a contract, allowing the court to strike down the contract or portions of it when found unconscionable. Massachusetts Law, in particular, recognizes unconscionability in contracts.
Let’s look at practices, laws, and procedures within the timeshare industry, which may lay grounds for unconscionability when assessing the enforceability of a timeshare contract and help you exit your timeshare contract.
What Is an Example of an Unconscionable Contract?
Below are some situations in which contracts are unconscionable:
- Duress occurs when one of the contracting parties has threatened the other with physical or emotional violence or abuse.
- Undue influence is when one party puts undue pressure on another to sign the contract.
- Surprise-Â when one party has included terms unknown to the other party, either by adding these in after the contract has been signed or even in instances where due to font size or overly technical jargon, the other party cannot be expected to have either seen or understood the surprising terms.
- Unequal bargaining power is when one party has a significant advantage over another due to specific knowledge, age, or intelligence.
What Are the Two Types of Unconscionability in Contracts?
For a contract to be unconscionable, it must be found to be procedurally and substantively unconscionable.
Procedurally, the courts look to see whether the contract was entered into between two parties of significantly differing bargaining power, as well as whether the parties had the genuine ability to know and understand the terms of the contract.
Procedural Unconscionability and Timeshare
If you have sat through a timeshare presentation, you will know that they are super slick, high-pressure, repetitive marketing funnels. Often accompanied by promises of gifts and “no obligation” attendance, the presenters use every trick in the book to get attendees to sign on the dotted line. In their zeal to convert non-timeshare owners into vacation club converts, they often misrepresent information, overpromise, and underdeliver.
Often they mislead people through omission. It would probably do nothing for conversion rates if they advised you at the sales presentation that your monthly maintenance fee would escalate at a rate of 5 percent per annum as long as you own the timeshare. You could also end up paying $4,000 per year for maintenance fees, which is often the case when people are older and have less disposable income.
Procedurally the sales presentations are designed to avoid the thorny issues and sell the timeshare as an investment – which it is not. Every case is different, and when approaching the courts, you need to be able to prove your allegations. Considering this, it makes sense to consult with a lawyer who deals with timeshare issues on a regular basis.
Timeshare Defense Attorneys have a team of experienced and skilled lawyers on call to offer you legal advice about all things timeshare.
Substantive Unconscionability in Timeshare Contracts
Substantive unconscionability enables an assessment of whether the contract itself (as opposed to the procedure) contains clauses that are unreasonable and unfair by themselves.
Timeshare agreements often contain clauses that attempt to waive the purchaser’s rights regarding potential claims that the contract could fall foul of.
So, for example, a waiver clause could state that the purchaser waives the right to claim against the real estate developer for deceptive promises made about the resale value or future capital appreciation of the timeshare.
Sometimes it is possible to exert significant pressure on a timeshare developer when they know that your lawyer is aware of procedural and substantive elements, which could render the contract void for reasons of unconscionability. This can be used successfully in the negotiation process and can nudge the developer into making a settlement.
What Does the Court Do if a Contract Is Found to Be Unconscionable?
When a court finds a contract to be unconscionable, it can:
- Elect to declare the entire contract void, in which case both parties walk away with no further obligations.
- Find only specific clauses unconscionable, in which case it could declare the clause void but still enforce the rest of the contract.
Every case is different. If you face timeshare issues, seeing an experienced timeshare attorney to consider your options is a good idea.
What Happens to Unconscionable Timeshare Contracts?
Similar to any other contract, an unconscionable timeshare agreement can be voided, or the unconscionable clauses can be removed from the contract.
How Timeshare Defense Attorneys Can Assist
Suppose you are looking to exit or cancel a timeshare contract to secure a release from your timeshare obligation. In that case, Timeshare Defense Attorneys can assess your case, determine your legal rights, and guide you. Our highly experienced timeshare lawyers are familiar with the nuances of how timeshare defense works and will do their utmost to keep you informed every step of the way.
Contact us today for a free consultation.
Frequently Asked Questions
What Happens if You Don’t Pay Your Timeshare?
Suppose you stop paying monthly mortgage payments or maintenance fees on your timeshare. In that case, it is likely that the timeshare developers will affect a timeshare foreclosure on you, which means you will lose the timeshare property and your timeshare interest and may even ruin your credit rating.
Consider seeing a professional timeshare lawyer before stopping any payments.
How Much Does It Typically Cost to Get Out of a Timeshare?
Every timeshare case is different, so this question is tricky. If you extricate yourself from your timeshare and cancel your contract within the cancellation period (known as the rescission period), it may cost you nothing.
If you end up suing the timeshare company and the matter is not settled, and it goes to trial, the various fees and expenses could be significant.