CO Governor Signs Resale and Transfer Regulation Bill

2013-05-07

Issue Brief

SB 182, legislation providing for regulation of resale/transfer transactions in Colorado, has been introduced by Senator Jeanne Nicholson. The bill seeks to provide protection for consumers from aggressive and misleading sales and marketing practices in the resale market by requiring disclosures to the seller and prohibiting advance fees for the transfer of a timeshare. In setting the ground rules for acceptable practices, it is intended that the bill will provide a predictable experience in the secondary market and end abuses which have been damaging for timeshare owners and associations. 

Impact

SB 182 regulates the transfer of timeshare by transfer companies. Successful passage could provide significant benefits to timeshare owners hoping to resell their timeshare with confidence and for associations which have been hard hit by the transfer of interests to entities who have no intent to meet the responsibilities of ownership.

Position/Call to Action

ARDA and ARDA-ROC support SB 182 as a positive step toward a more predictable timeshare resale market benefiting both timeshare owners and associations.

Issue Updates

As it passed the Colorado Legislature, SB 182  added provisions to the Colorado Consumer Protection Act to prevent the worst behaviors of resale and transfer companies. The bill passed both the Senate and House by unanimous vote, following the addition of an amendment that provided a limited exemption for Colorado licensed realtors if they do not collect advance fees and do not have a business relationship with any party in a resale/transfer transaction. On May 3, Colorado Governor Hickenlooper signed the landmark resale legislation into law, protecting owners and associations, as fully supported by ARDA and ARDA-ROC. The law took effect August 7, 2013. 

Resolution

On May 3, 2013, Colorado Governor Hickenlooper signed landmark resale legislation protecting timeshare owners and associations in the state. The passage of SB 182 represents the completion of a two-year effort at the direction of the ARDA Resort Owners Coalition (ARDA-ROC) with the support of the American Resort Development Association (ARDA). ARDA-ROC is currently pursuing similar legislation in a number of other states including Florida, Massachusetts and South Carolina.