One of the most onerous aspects of timeshare ownership is the assessment of
ever increasing ‘maintenance’ fees. In this blog, we have discussed the
economics of maintenance fee dues for a hypothetical ‘typical’ resort:
An average resort may have 1,000 units, and charge an average of $1,000 per
year for ‘maintenance fees’. Assuming no overbooking occurs – not at all a
foregone conclusion in this industry – and do some fairly straightforward
math: 1000 units x $1,000 per year x 52 weeks = $52 million dollars.
The numbers are quite simply staggering. There are very few things that cost
$52 million in order to ‘maintain’.
It is a reasonable inference, then, that the timeshare developer/resort
ownership are, in many instances, playing fast and loose with the funds
properly earmarked for maintenance. Forced disclosures solicited by this law
firm have shown that a very small percentage of this money actually goes
toward ‘maintenance’.
On the other hand, don’t be too surprised if your requests for an accounting
of these funds is not freely forthcoming. Nonetheless, your timeshare
developer (which often controls the owner’s association) owes you a
fiduciary duty to disclose how these funds are allocated. In many or most
states there is also a statutory requirement of accounting. Thus, they can
be forced, in a court of law, to render such an accounting. This gives you
tremendous leverage, as a frustrated timeshare owner, to force a rescission.
Why? The developer would much rather cancel a single timeshare interest than
risk the compulsory disclosure of its handling of ‘maintenance’ fees. Thus,
in suing for rescission, we invariably add a count in the pleadings
demanding an accounting as well. Please feel free to contact us at any time
to discuss your options in legally getting out of your timeshare obligation.
Learn More about the Timeshare Lawyers who has you in mind at www.aaronsonlawgroup.com
If you want to know more please view our resume
We also have a new location in London for those who are in need of a timeshare attorney in the United Kingdom
