Foreclosure on a Timeshare Property in California

Timeshare foreclosure in California is addressed under California's Vacation Ownership and Timeshare Act of 2004. Under the Act, a timeshare association may forfeit or foreclose on a timeshare interest for failure to pay a timeshare assessment. The Act's provisions do not extend to timeshare plans that consist of 10 or fewer timeshare interests; that extend over a three-year period; or where the purchaser's financial obligation is equal to $3,000 or less. For timeshare plans outside California but offered for sale within the state, public advertisements must stipulate that the timeshare plans may not be subject to the forfeiture or foreclosure protections provided under California law.

Vacation Ownership and Timeshare Act of 2004

Chapter11211.5

(a) This chapter applies to all of the following:

(1) Timeshare plans with an accommodation or component site in this state.

(2) Timeshare plans without an accommodation or component site in this state, if those timeshare plans are sold or offered to be sold to any individual located within this state.

(b) This chapter does not apply to any of the following:

(1) Timeshare plans, whether or not an accommodation is located in this state, consisting of 10 or fewer timeshare interests. Use of an exchange program by owners of timeshare interests to secure access to other accommodations shall not affect this exemption.

(2) Timeshare plans, whether or not an accommodation is located in this state, the use of which extends over any period of three years or less.

(3) Timeshare plans, whether or not an accommodation is located in this state, under which the prospective purchaser's total financial obligation will be equal to or less than three thousand dollars ($3,000) during the entire term of the timeshare plan.

Timeshare Foreclosure

Chapter11274

(a) The association shall not be authorized to cause the absolute forfeiture of a timeshare interest owner's right, title, or interest in the timeshare plan on account of the time-share interest owner's failure to comply with provisions of the timeshare instrument or the rules and regulations for the time-share plan except pursuant to either of the following:

(1) The judgment of a court or the decision of an arbitrator as provided in the time-share instrument.

(2) A foreclosure or sale under a power of sale for the failure of a time-share interest owner to pay assessments duly levied by the association.

(f) For single site timeshare plans and component sites ofspecific timeshare interest multi-site timeshare plans and non-specific timeshare interest multi-site timeshare plans located outside this state, and offered for sale in this state, the public report shall contain the following disclosure in conspicuous 14-point type:

THIS TIME SHARE PLAN MAY NOT BE SUBJECT TO THE SAME PROTECTIONS AGAINST FORFEITURE AND FORECLOSURE AS PROVIDED BY CALIFORNIA LAW. YOU SHOULD BECOME FAMILIAR WITH THE PROCEDURES PROVIDED BY THE LAWS OF THE STATE IN WHICH THE TIME SHARE PLAN IS LOCATED.

Talk with an Attorney

If you have a timeshare in California and fail to pay assessments, you may be subject to foreclosure or forfeiture proceedings. Additionally, if you are a California resident and your timeshare property is outside the state, you cannot claim any protections against foreclosure offered under California's laws. The laws where the timeshare is located with preside. Talk with an attorney to determine which state's laws apply and what protections against foreclosure are provided under those laws.