Time shares in Alberta

A time share is a major investment that should be considered carefully. Don’t be rushed into making a decision.

• Read sales materials and the agreement before you sign.
• You may be offered a “free” holiday certificate, prize, or gift to inspect a development or attend a time share presentation, and then find that the giveaways have little or no value.
• Time share contracts extend over a number of years. Make sure you understand how the property will be managed and what your responsibilities will be.
• Many people buy time shares for the opportunity to use properties in a variety of locations. Check the availability of the properties you are interested in using as some locations are popular and difficult to reserve.
• Check with the Better Business Bureau regarding any problems that may have been reported or about the business’ complaint history.
• Check with the Canadian Resort and Travel Association to verify the resort-developer’s status. Association members agree to follow its Code of Ethics for marketing time shares. The association provides information on various types of time shares and points-based vacation clubs.

Questions you should ask before signing a contract:

• Does the time share business have a valid provincial license?
• What exactly are you buying?
• How much will it cost?
• What options do you have to use different properties?
• Who is responsible for maintaining the property?
• Are there maintenance fees?
• What are my cancellation rights?

All contracts must be in writing and be signed by you and the business.

Time share contracts or points-based time share contracts must include, but are not limited to, the following:

• full names and addresses of the consumer and business
• name and position of any agent or employee that represents the business
• business’ telephone number, fax number and e-mail address (if applicable)
• date and place at which the contract was entered into
• options available in a points-based time share contract to exchange points to use real or personal property
• complete details on what is being purchased (property, points, time share interest)
• full disclosure of all fees, costs, payment terms, credit and security provided
• the date the time share can be used
• any arrangements on how substitutions can be made
• a non-disturbance clause to protect the rights of a time share purchaser should a third-party creditor have a stake in the property
• a statement of cancellation rights in 12 point font

A copy of the signed contract must be provided to you at the time of signing.

You have 10 days to cancel the contract. You do not need a reason to cancel. The 10-day period starts the day after you get a copy of the signed contract.

You can cancel the contract by personal service, registered mail, e-mail or fax at the address provided by the business. Keep a copy.

After you cancel the contract, the business has 15 days to refund your money. If you cancel after using the property, you may have to pay a reasonable fee for the time you used, after your money has been refunded.

If the business does not cancel the contract or refund your money, you may file a complaint with Service Alberta and Red Tape Reduction - Consumer Investigations.

You can cancel a contract within one year after the date the contract was entered into if the business:

• does not hold a valid licence
• the contract does not contain all the information required
• the contract is not signed by you as the consumer
• you do not get a copy of the signed contract the day it was signed

If you buy a time share while you are out of Alberta, you may not have any right to cancel and get your money back. Read the contract carefully.

Find out if local laws give you any right to cancel and, if so, what you need to do.

In addition, the time share business may belong to an organization that provides its own right to cancel.

Any business or person that solicits, offers, negotiates or concludes a time share or points-based time share contract in Alberta needs a Time Share and Points-based business license from Service Alberta and Red Tape Reduction.

There are three types of licenses that have been established. They are:

• Right to Use Licence
• Personal Property Ownership Licence
• Real Property Ownership Licence

A business must provide security and comply with the requirements of the legislation.

Access licensing requirements.

Every time share business is required to create and maintain records for three years from the date the record was made.

The records must include:

• copies of all contracts sold including copies of cancelled contracts
• assessments on the value of the time share interests sold including the number of points attached to the assessment if applicable
• copies of all advertising and marketing materials
• copies of all information relating to any refunds paid to consumers

1. Any funds paid from a consumer to the business must be held in trust until the 10-day cancellation period has passed.
2. Any funds collected in advance of a property being completed must also be held in trust until construction of the property is complete or the consumer has the legal right to use or occupy the property.
3. Funds must be deposited into a trust account at a bank, treasury branch, credit union or trust corporation in Canada within two days after it is received.
4. This money cannot be co-mingled with non-trust money.

It is an offence for a business to misrepresent any information relating to:

• the contents of the contract
• what is purchased
• how the time share or points-based time shares may be used
• the availability of any options to use or exchange rights or amenities in one property for rights or amenities in another property
• the availability of any discount, prize, gift or promotional item offered in connection with the contract

No time share or points-based contract can be subject to any third party financial encumbrance unless there is a non-disturbance in the contract.

This means that such contracts should not have any financial obligations or restrictions related to the property they provide access to.

Suppliers must also discharge any previously-registered financial encumbrance or lease registered by a third party as soon as reasonably possible.

Access additional information on unfair business practices.