The California timeshare industry is comprised of more than 120 resorts and offers 10,690 units to more than a million owners. These owners, along with their guests, took roughly 430,000 vacations to the timeshares in 2005 and spent approximately $1500 during each trip. The industry also provided more than 16,000 people with jobs totaling $565 million in income earned.
 
Obviously the timeshare industry presents great economic opportunities to the community as well as an affordable vacation option to consumers. A new bill was signed in California to simplify the process of selling and purchasing timeshares marketed in more than one state.
 
The bill, which will take effect on January 1st, attempts to streamline the paperwork involved in timeshares sales by creating documents that meet the requirements of multiple states. This would save workers in the industry time by reducing the need for repeated filings.
 
Additionally the new law forces timeshare companies to offer information to consumers regarding special discounts, fees, financing, as well as other important aspects of timeshare ownership.
 
The president and CEO of the American Resort Development Association, Howard C. Nusbaum feels that the new law simply reflect what is happening in the rapidly evolving timeshare industry.   "Twenty-five years ago, someone would develop a piece of land, sell (time shares) at the resort, and then the homeowners association would take over," says Nusbaum "That was pretty much the business model. But in the last 15 or so years, many hotel brands and multi-state players have entered the market."
 
Nusbaum is referring to major companies such as Disney, Four Seasons, Hyatt and Marriott that are developing timeshare resorts and often operate in multiple states. By simplifying the laws surrounding these transactions, states will have similar paperwork that will be easier for consumers to understand.
 
Jeff Davi, the California Real Estate Commissioner, feels "Ultimately, this bill will enhance consumer protections in timeshare purchases while lessening the burden on resort developers who market properties in multiple states."
 
Timeshare Liquidators representative, Reuben Reyes Resendez, reported that disclosure procedures have a concern in the timeshare industry for most of the 25 years that he has been involved in the business. He, along with other timeshare representatives, has been pushing for self-regulation for timeshare firms.
 
The new law will also require developers to tell buyers about all their rights, choices as well as their obligations as timeshare owners. This will hopefully decrease the number of people who complain that timeshare companies have misled them. Still the Federal Trade Commission (FTC) urges potential investors to do their homework before buying a timeshare.
The FTC now offers a downloadable brochure named "Time and Time Again: Buying And Selling Timeshare and Vacation Plan." The pamphlet reminds buyers that not only is a timeshare commitment for the purchase price, but also often includes mandatory maintenance fees that may increase annually. Also of note is the fact that timeshares, unlike most other forms of real estate, tend to depreciate with time due to the oversupply.