Over the years, TCA have commented on the clause contained within both the timeshare purchase contract and also contained in the closing paperwork presented. In a nutshell, the clause vindicates the timeshare developer from any distortions of the truth or downright lies told by sales staff during the “tour”. Our story is not an unfamiliar one and shows the “licence to lie” is alive and well.
The story
After a lengthy pressured sales battering, a couple signed to buy a timeshare with Westgate Resorts. Not long after they purchased they were persuaded to upgrade, it was then that they found out that what they had actually got themselves into bears no resemblance as to what they had been told during the presentations. Naturally, a complaint was made to Westgate pointing out the lies the couple had been told. This followed by a long letter from a Westgate Account Manager in the Owner Relations Correspondence department. The important extract from the letter is shown below:
“Due to the fact that timeshare real estate sales are highly regulated and contractual in nature, we have examined the documents you signed at the time of purchase. Please understand it is not possible to validate verbal communications you may have had with the sales agent; therefore, the Developer requires all owners to complete the Acknowledgment of Representations (AOR) document. With the AOR, the Developer strives to eliminate the possibility of any misunderstandings regarding what may have been represented to you, which may have influenced your decision to purchase. Upon review of this document, your signature indicates that you understood there have been no representations regarding investment or resale potential of your timeshare. Since you are an owner of deeded timeshare real estate, you can sell your property at your discretion, as Westgate does not have a resale or buyback program.”
From this we can see that Westgate have got deaf ears when it comes to complaints of this nature. One statement in the letter adds to the previous lies experienced by the couple:
“the Developer strives to eliminate the possibility of any misunderstandings regarding what may have been represented to you, which may have influenced your decision to purchase.”
This is utter rubbish, Westgate sales management positively encourage sales staff to paint a picture that Westgate timeshare ownership will be all things to all men, when we all know that isn’t the case. In a well viewed YouTube clip, David Segal Jr, son of the founder and owner of Westgate Resorts actually tells sales staff to lie.
BS baffles brains
During the closing process, the new owner is presented with a pile of paperwork to sign. The Public Offering Statement, the sales contract, any finance agreement and of course the “Acknowledgment of Representations (AOR) document”. As explained above, signing this form vindicates Westgate Resorts from any verbally stated truthful or untruthful statements.
It’s the closing agents’ job to go over the paperwork in brief, which they do, however, given the quantity of paper, there is no allowance for the purchaser to really read and understand. When the AOR document arrives, the closer will gloss over its real meaning:
“This form is just to say that you had a great sales presentation, sign here”. Once again, the buyer has had no real time to review before signing. Once signed, there is no way back, once the sales lies become exposed.
As if to emphasise the speed with which the closing process takes place, we found an extract from a similar complaint regarding another purchaser and the Westgate response:
“Similarly, regarding the signing process, we sincerely regret any inconvenience with its speed. Please know, had you communicated the discomfort with the closing officer, it would have been adjusted to a more favourable pace. In addition, it is highly important to review all your contract documents prior to signing them to ensure that what you were signing corresponded with what you were verbally advised. It is also necessary to inform your closing officer of any questions you may have had so that your concerns could be addressed immediately.”
From this there is a clear admission that the important documents were speedily glossed over, giving no time to read and digest. Odd that the writer refers to making sure what was told is in line with what is being purchased when the AOR document basically dismisses any verbal comment.
TCA comment
Another true example of the “licence to lie” in action. A simple signature in the wrong place without a full understanding of exactly what is being signed, and in this case any right to reply has been forfeited. The closing process is famous for rushing through all the documents presented without the buyer having any clear understanding of the ramifications.
The closing agent will not be best pleased if the buyer takes the time to read and understand all that requires a signature, but that’s the only way to ensure that everything is above board. In the case we have highlighted, the couple were not impressed with the way Westgate brushed off their complaint by hiding behind the AOR document and have raised the issue with the Florida Attorney General, Ashley Moody.
They may have to wait a long time for any form of outcome because the Florida AG office has over 4,000 pages of complaints against Westgate alone; imaging how many more complaints have been lodged regards other developers in Florida State.
The couple didn’t give up with Westgate and wrote many letters, as well as involving the AGs office. It would appear that Westgate have put a final full stop on the end of the sentence by this communication:
“It is truly unfortunate that you feel this way about your ownership. Although you may disagree, Westgate has reviewed and addressed your concerns in past letters. As previously advised in our responses, Westgate maintains that both Purchase Contracts are valid; therefore, Westgate respectfully denies your requests for release via Warranty Deed in Lieu of Foreclosure.”
For more information regarding this article or assistance in any other timeshare related issues please contact the TCA on 01908 881058 or email: info@TimeshareConsumerAssociation.org.uk