ARDA and ARDA-ROC Oppose Legislation Proposing Voluntary Surrender of Timeshare Interests (HB 1658)


Issue Brief

Representative Timothy Whelan introduced HB 1658, which, if passed, would enable a timeshare owner to voluntarily surrender their timeshare as long as they have no outstanding payments due to the HOA and no other liens on the timeshare. The transfer of ownership would occur by a timeshare owner delivering a notarized deed of surrender to the managing entity or, if no managing entity exists, to the developer.

The bill states that the managing entity or developer must accept all deeds without regard to whether it has the capacity to take on the financial obligations of ownership of the surrendered timeshare. This is a re-file of a bill that Representative Cleon Turner filed last session.



ARDA and ARDA-ROC believe that the bill, as drafted, would present significant hardships for timeshare developers, managing entities, and homeowners’ associations for the following reasons:

• There are constitutional issues by legislatively allowing an individual to alter the contractual terms and conditions of the purchase.

• For entities selling timeshare interests, proceeds from sales would not be able to be recognized under the full accrual method of accounting and clean title would be nearly impossible to obtain.

• One of the most significant concerns is that it will be the responsibility of the remaining owners in the association to bear the costs of ownership when an interest is returned to a developer or managing entity and goes unsold.
o This could create a negative spiral effect if more and more owners are priced out of their timeshare, eventually leading an association into bankruptcy.


Position/Call to Action

ARDA and ARDA-ROC oppose the proposed legislation as it presents significant pitfalls for both industry and owners alike.


Issue Updates

ARDA and ARDA-ROC representatives are planning meetings with Rep. Whelan and key players on the House Judiciary Committee in Boston to educate them about all of the concerns with the bill, including the possible constitutional, accounting, and title implications.


Through the concerted efforts of ARDA-ROC, HB 1658 was defeated in the 2016 session. 

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