ARDA and ARDA-ROC Support Texas Consumer Protection Legislation Addressing Fraudulent Practices by Timeshare Transfer and Exit Companies (HB 2261 / SB 738)


Issue Brief

The proposed legislation is designed to prevent owners falling victim to fraudulent and unethical business and marketing practices, while still allowing legitimate service providers to operate.



 The legislation provides definitions for “transfer” and “termination” with respect to a timeshare interest, and identifies the following as deceptive trade practices to deter illegitimate companies or individuals from posing as legitimate transfer or exit companies:
• Making false or misleading statements in connection with a timeshare resale transfer or exit service including any related to the source of contact information for the timeshare owner, the identity of the service provider, and the term and conditions of the services offered.
• The collection of advance fees before the completion of services.
• Failure to notify a timeshare owners’ association of a transfer and to comply with reasonable association transfer policies.
• Failure to provide written disclosures that give the consumer important information on the details of the services being provided.

Position/Call to Action

 ARDA and ARDA-ROC strongly support this proposed consumer protection legislation, as it will help to curtail fraudulent transfer and exit practices that negatively affect timeshare owners and homeowners’ associations alike.

Issue Updates

 The legislation has passed the legislature and is awaiting signature into law by Governor Abbott.


Governor Abbott signed the bill into law on June 16, 2015. This new law providing for important consumer protections when working with transfer or exit companies will take effect September 1, 2015.