(a) A purchaser may cancel a purchase contract before midnight of the seventh calendar day after the date the purchaser signs and receives a copy of the purchase contract or receives the required timeshare disclosure statement set forth in section 1107, whichever is later. A developer may offer a cancellation period that is longer than seven calendar days if desired or required in the jurisdiction where the timeshare property is located. Closing under the purchase contract may not occur prior to the expiration of the seven-day cancellation period.
(b) A purchaser may not waive any right of cancellation under this section. A purchase contract or any other writing containing a waiver of such right means the transaction is voidable by the purchaser for a period of 18 months after execution.
(c) If a purchaser elects to cancel a purchase contract under this section, the purchaser may do so by hand-delivering notice of cancellation to the developer, by mailing notice by prepaid mail, or by faxing notice to the developer or to the developer’s agent for service of process, or by providing notice by overnight common carrier delivery service to the developer or the developer’s agent for service of process.
(d) Cancellation is without penalty, and all payments made by the purchaser before cancellation must be refunded and any negotiable instrument executed by the purchaser must be returned not later than 30 days after the date on which the developer receives a timely notice of cancellation or on or before the fifth day after the date the developer receives good funds from the purchaser, whichever is later.
(e) Each purchase contract must contain the following language, in conspicuous type, or similar language or type if required by the jurisdiction in which the timeshare property or properties are located, with the developer’s name and address and the address of the managing entity inserted where indicated:“PURCHASER’S RIGHT TO CANCELBY SIGNING THIS CONTRACT, YOU ARE INCURRING AN OBLIGATION TO PURCHASE A TIMESHARE INTEREST. YOU MAY, HOWEVER, CANCEL THIS CONTRACT WITHOUT PENALTY OR OBLIGATION BEFORE MIDNIGHT OF THE SEVENTH CALENDAR DAY AFTER THE DATE YOU SIGN AND RECEIVE A COPY OF THE PURCHASE CONTRACT, OR RECEIVE THE REQUIRED TIMESHARE DISCLOSURE STATEMENT, WHICHEVER IS LATER. IF YOU DECIDE TO CANCEL THIS CONTRACT, YOU MAY DO SO BY EITHER HAND-DELIVERING NOTICE OF CANCELLATION TO THE DEVELOPER, BY MAILING NOTICE BY PREPAID UNITED STATES MAIL OR BY FAXING NOTICE TO THE DEVELOPER OR THE DEVELOPER’S AGENT FOR SERVICE OF PROCESS, OR BY PROVIDING NOTICE BY OVERNIGHT COMMON CARRIER DELIVERY SERVICE TO THE DEVELOPER OR THE DEVELOPER’S AGENT FOR SERVICE OF PROCESS. YOUR NOTICE OF CANCELLATION IS EFFECTIVE ON THE DATE SENT, IF MAILED OR SENT BY OVERNIGHT COMMON CARRIER, OR WHEN TRANSMITTED FROM THE PLACE OF ORIGIN, IF FAXED, TO (INSERT NAME OF DEVELOPER) AT (INSERT ADDRESS OR DEVELOPER). FOR YOUR PROTECTION, SHOULD YOU DECIDE TO CANCEL, YOU SHOULD EITHER SEND YOUR NOTICE OF CANCELLATION BY CERTIFIED MAIL WITH A RETURN RECEIPT REQUESTED OR OBTAIN A SIGNED AND DATED RECEIPT IF DELIVERING IT IN PERSON OR BY OVERNIGHT COMMON CARRIER. A PURCHASER SHOULD NOT RELY ON STATEMENTS OTHER THAN THOSE INCLUDED IN THIS CONTRACT AND THE DISCLOSURE STATEMENT. SHOULD YOU CANCEL, ANY PAYMENTS MADE BY YOU UNDER THE CONTRACT AND ANY NEGOTIABLE INSTRUMENT EXECUTED BY YOU WILL BE RETURNED WITHIN THIRTY DAYS FOLLOWING RECEIPT BY THE DEVELOPER OF YOUR CANCELLATION NOTICE, OR ON OR BEFORE THE FIFTH CALENDAR DAY AFTER THE DATE THE DEVELOPER RECEIVES GOOD FUNDS FROM THE PURCHASER, WHICHEVER IS LATER, AND ANY SECURITY INTEREST ARISING OUT OF THE TRANSACTION WILL BE CANCELLED.
“PURCHASER’S RIGHT TO CANCEL
BY SIGNING THIS CONTRACT, YOU ARE INCURRING AN OBLIGATION TO PURCHASE A TIMESHARE INTEREST. YOU MAY, HOWEVER, CANCEL THIS CONTRACT WITHOUT PENALTY OR OBLIGATION BEFORE MIDNIGHT OF THE SEVENTH CALENDAR DAY AFTER THE DATE YOU SIGN AND RECEIVE A COPY OF THE PURCHASE CONTRACT, OR RECEIVE THE REQUIRED TIMESHARE DISCLOSURE STATEMENT, WHICHEVER IS LATER. IF YOU DECIDE TO CANCEL THIS CONTRACT, YOU MAY DO SO BY EITHER HAND-DELIVERING NOTICE OF CANCELLATION TO THE DEVELOPER, BY MAILING NOTICE BY PREPAID UNITED STATES MAIL OR BY FAXING NOTICE TO THE DEVELOPER OR THE DEVELOPER’S AGENT FOR SERVICE OF PROCESS, OR BY PROVIDING NOTICE BY OVERNIGHT COMMON CARRIER DELIVERY SERVICE TO THE DEVELOPER OR THE DEVELOPER’S AGENT FOR SERVICE OF PROCESS. YOUR NOTICE OF CANCELLATION IS EFFECTIVE ON THE DATE SENT, IF MAILED OR SENT BY OVERNIGHT COMMON CARRIER, OR WHEN TRANSMITTED FROM THE PLACE OF ORIGIN, IF FAXED, TO (INSERT NAME OF DEVELOPER) AT (INSERT ADDRESS OR DEVELOPER). FOR YOUR PROTECTION, SHOULD YOU DECIDE TO CANCEL, YOU SHOULD EITHER SEND YOUR NOTICE OF CANCELLATION BY CERTIFIED MAIL WITH A RETURN RECEIPT REQUESTED OR OBTAIN A SIGNED AND DATED RECEIPT IF DELIVERING IT IN PERSON OR BY OVERNIGHT COMMON CARRIER. A PURCHASER SHOULD NOT RELY ON STATEMENTS OTHER THAN THOSE INCLUDED IN THIS CONTRACT AND THE DISCLOSURE STATEMENT. SHOULD YOU CANCEL, ANY PAYMENTS MADE BY YOU UNDER THE CONTRACT AND ANY NEGOTIABLE INSTRUMENT EXECUTED BY YOU WILL BE RETURNED WITHIN THIRTY DAYS FOLLOWING RECEIPT BY THE DEVELOPER OF YOUR CANCELLATION NOTICE, OR ON OR BEFORE THE FIFTH CALENDAR DAY AFTER THE DATE THE DEVELOPER RECEIVES GOOD FUNDS FROM THE PURCHASER, WHICHEVER IS LATER, AND ANY SECURITY INTEREST ARISING OUT OF THE TRANSACTION WILL BE CANCELLED.
(f) Immediately following the required statements in subsection (e), there must be a space reserved for the signature of the purchaser.
(g) The purchase contract must also include the following:(1) The name and address of the developer;(2) The name and address of the timeshare plan being offered;(3) For a multisite specific timeshare interest, the name and location of the timeshare property to which the specific interest relates;(4) A statement that the purchaser should refer to the timeshare disclosure statement for more information required to be provided to the purchaser;(5) A statement disclosing the amount of the periodic assessments currently assessed against or collected from the purchasers of the timeshare interest;(6) The purchaser’s address for purposes of any notice required under this chapter; and(7) The date the purchaser signs the contract.
(1) The name and address of the developer;
(2) The name and address of the timeshare plan being offered;
(3) For a multisite specific timeshare interest, the name and location of the timeshare property to which the specific interest relates;
(4) A statement that the purchaser should refer to the timeshare disclosure statement for more information required to be provided to the purchaser;
(5) A statement disclosing the amount of the periodic assessments currently assessed against or collected from the purchasers of the timeshare interest;
(6) The purchaser’s address for purposes of any notice required under this chapter; and
(7) The date the purchaser signs the contract.
(h) The information required to be provided by this section may be provided in the purchase contract or in an exhibit to the purchase contract, or it may be provided in part in both the purchase contract and in an exhibit to the purchase contract if all of the information is provided.
(i) A purchase contract that does not contain the required statements set forth in subsection (e) is voidable for a period of 18 months after execution.
(j) A purchaser can elect to receive the purchase contract by electronic means, as long as the developer gives the purchaser the option of receiving the purchase contract in paper format or by electronic means.