Progress Continues on Transfer & Relief Company Regulation
By ARDA State Affairs
September 5, 2013
We at ARDA, and as an industry, continue to pursue solutions to help solve the growing problems with illegitimate transfer companies and the far-reaching consequences they have on HOAs and owners.
There are challenges beyond finding an illegitimate company after it has taken money from unknowing owners. HOAs are burdened with unpaid and uncollectible fees and taxes from the timeshare property, while significant time and money must be spent by the HOA on the foreclosure process to recapture the interest. Maintenance fees rise to deal with the problem, leading to more and more delinquent owners, and the possibility of HOA bankruptcy. As a result, the effect on owners leads to negative perceptions toward the resort or HOA.
To date, ARDA-ROC has successfully lobbied for legislation in four states—Colorado, Florida, Nevada, and Texas—with similar legislation pending in Massachusetts and South Carolina. Legislative solutions include the requirement of a written agreement between a consumer and transfer company, escrow for any payment of upfront fees by a consumer, and serious penalties for someone who knowingly transfers a timeshare interest to a person or entity with no intention of meeting its ownership obligations.
ARDA’s State Affairs team continues to work with state legislators and regulators to ensure that any enforcement mechanism (legislative or otherwise) gives proper protection to timeshare owners as well as legal consequences for the companies participating in bad business practices. Click here to learn more about ARDA-ROC’s position on this issue and others.