Ballard Spahr LLP: Revised Utah Timeshare Act Awaiting Governor’s Approval

Ballard Spahr LLP: Revised Utah Timeshare Act Awaiting Governor’s Approval

By Steven D. Peterson, Thomas G. Bennett and Nicole C. Evans

The Utah Senate and House have approved HB 191, which makes key changes to Utah's Timeshare and Camp Resort Act (the Act) and establishes a framework for additional updating in the future. The revisions were widely supported by the Utah Division of Real Estate (DRE), the American Resort Development Association, and timeshare industry leaders. The bill is awaiting the Governor's approval.

Highlights of the changes are:

  • Increased Rescission Period. The five-day rescission period technically remains the same, but the term "business day" has replaced "calendar day." Because the new rescission period excludes weekends and federal and state holidays, it effectively expands the rescission period for the majority of timeshare purchasers.
  • Elimination of Advertising Pre-filing Requirements. Copies of proposed advertisements and sales promotional literature are no longer required to be pre-filed with the DRE.
  • Non-binding Reservations Expressly Permitted. The previous informal practice of the DRE to permit non-binding reservations prior to registration is now codified in the revised Act, which also stipulates that the funds must be deposited in an escrow account until the registration is approved and a binding contract has been executed.
  • Updated Terminology. In a move to reflect the modern market, the new definition of "timeshare interest" includes fixed or variable time interests, and a "timeshare development" clearly includes multisite plans such as the club programs now on the market.
  • Confidential Owner Lists. Under the new Act, owners are protected against the developer or a manager disclosing the owner's name, address, or e-mail address without the written consent of the owner. This change reflects the growing concern among consumers about unwanted disclosure of confidential information for commercial purposes.
  • Reduced Requirements for Resales by Associations. Many foreclosure resales by the original developer or the owners association are exempt from registration under the Act.

Ballard Spahr's Real Estate Resort and Hotel Group is nationally recognized for its in-depth legal, industry, and market knowledge of vacation ownership plans and timeshare resorts. The group advises timeshare and resort clients on regulatory compliance throughout the United States. If you would like more information about this statute and its application to you or have any other questions about compliance with timeshare laws, please contact Practice Leader Steven D. Peterson at 801.531.3023 or petersons@ballardspahr.com; Thomas G. Bennett at 801.531.3060 or bennett@ballardspahr.com; or Nicole C. Evans at 801.531.3058 or evansn@ballardspahr.com.

(Note: This legal alert highlights only select changes to the Timeshare and Camp Resort Act of Utah, Title 57, chapter 19. Bill 191 also revises the Utah Mortgage Practices and Licensing Act, the Appraisal Management Company Registration and Regulation Act, the Real Estate Licensing and Practices Act, and the Real Estate Appraiser Licensing and Certification Act. If you are subject to those laws, please contact us for more information.)


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This alert is a periodic publication of Ballard Spahr LLP and is intended to notify recipients of new developments in the law. It should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own attorney concerning your situation and specific legal questions you have.