Legislation Would Prevent Accumulation of Fees, Simplify Timeshare Foreclosure Process
Legislation sponsored by Assemblyman Patrick Diegnan to encourage condominium associations to initiate foreclosure on a property rather than allow fees to accumulate when a timeshare owner is delinquent on payment was released by an Assembly panel on Monday.
The bill (A-3345) would place a limit on liens filed by condominium associations for unpaid assessments on timeshares.
“Many individuals who no longer want the responsibility of having their timeshares find them difficult to sell, which can result in years of unmanageable fees that just continue to add up and damage their financial standing,” said Diegnan (D-Middlesex). “This legislation will put a time limit on that process and prevent the accumulation of fees.”
Under the bill, liens for unpaid assessments would be limited to amounts no greater than 18 months of unpaid assessments for a unit. Instead of allowing fees to accumulate over an extended period, this limit would make it preferable for condominium associations to foreclose on units when owners would prefer not to possess a timeshare property any longer.
Typically organized under the “Condominium Act,” timeshares are subject to liens for certain fees when a unit owner fails to pay. If liens remain unpaid, the condominium association may foreclose on the unit in order to recoup its losses.
The measure was advanced by the Assembly Housing and Community Development Committee.