As a Result of Ongoing Effort to Protect Consumers in the Time-Share Market, Owners of Cape Cod Resorts Who Failed to Record Time-Share Intervals Previously Sold to Consumers Must Do So by February 2011
BOSTON, MA (November 11, 2010) -– Attorney General Martha Coakley entered into a settlement with several timeshare resorts and their owners for allegedly marketing and selling intervals for Cape Cod timeshare resorts but failing to properly record those intervals as required by law.
According to the settlement, the defendants marketed and sold timeshare intervals for four Cape Cod timeshare resorts: Soundings Seaside Resort, Breakers Ocean View Resort, Breakers Ocean Front Resort, and Edgewater Beach Resort (“Cape Cod Resorts”). Under the Massachusetts Real Estate Time-Share Act, the defendants were required to record a deed or notice of license within days of selling the timeshare interval. Instead, the defendants allegedly failed to record deeds or notices of license with the Barnstable County Registry of Deeds for months or even years, despite representing to consumers who had purchased timeshares that their timeshares were properly recorded.
The Assurance of Discontinuance, filed Nov. 8 in Suffolk Superior Court against Soundings Seaside Resort, LLC, Breakers Resort, LLC, New England Resort Marketing, LLC, Leon D. Narbonne, Sr. and Gordon Clark III, prohibits the defendants from marketing, advertising, or selling timeshare intervals in Massachusetts without properly recording timeshare intervals pursuant to the Massachusetts Real Estate Time-Share Act. The defendants must also record all deeds and/or notices of licenses by February 9, 2011 of timeshares previously sold to consumers, and provide consumers with copies of those deeds or licenses by April 11, 2011. In addition, the Assurance provides for a payment of $100,000 to the Commonwealth for penalties. However, the Commonwealth will suspend collection of $75,000 provided the defendants comply with the terms of the Assurance and record all outstanding timeshare deeds and/or notices of licenses.
“Failing to record timeshares pursuant to the law puts consumers’ property interests in these timeshares at risk,” AG Coakley said. “This agreement ensures that those consumers’ property rights are protected, and that the defendants will take their responsibilities as timeshare owners seriously and abide by the law.”
In a separate but related lawsuit filed on August 2, 2010, in Suffolk Superior Court, AG Coakley obtained a preliminary injunction against a Cape Cod man and his business. According to the complaint Christopher Moss and the company he founded, Timeshare Consulting Group, LLC, promised consumers he could obtain full refunds of the purchase price for their respective timeshares because the Cape Cod Resorts owners’ failed to record the timeshare intervals. Moss allegedly misrepresented to consumers that he was an expert in timeshare and consumer law and solicited consumers by mail, telephone, and face-to-face meetings, for his services as a timeshare consultant. Moss allegedly collected $495 from consumers who had purchased timeshare intervals at the Cape Cod Resorts in order to prepare complaint letters to send to the Attorney General’s Office and the Cape Cod Resort owners. The complaint alleges that Moss solicited consumers for his services by deceptively representing the complexity of the complaint process, and urging consumers to hurry because the statute of limitations on their claims would soon expire. Moss did not disclose that consumers are able to file complaints with the Attorney General at no charge.
On August 12, 2010, Suffolk Superior Court Judge Frank Gaziano granted a preliminary injunction against Moss and Timeshare Consulting Group, prohibiting them from representing that they are timeshare law experts; contacting any Massachusetts resident to offer timeshare consulting services; soliciting or accepting a payment for filing complaint forms with the Attorney General’s Office; and engaging in the unauthorized practice of law.
These matters are being handled by Assistant Attorney General Emily Armstrong with assistance from Paralegal Lois Martin, both of Attorney General Martha Coakley’s Consumer Protection Division.
SOURCE: Attorney General of Massachusetts