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Non-Reliance Clauses Explained

Man signing a non-reliance clause in a contract.

Non-Reliance Clauses Explained

Are you familiar with a Non-Reliance clause, otherwise known as the “Salesman’s License to Lie” provision? This dangerous catch in timeshare contracts seeks to protect real estate salespeople from legal consequences for making false claims or leaving out important details during a timeshare sales presentation. It’s been around forever but recently received new attention after John Oliver highlighted them on Last Week Tonight, an acclaimed HBO show.

John Oliver, Last Week Tonight on Timeshare

Years ago, when the New York Times interviewed timeshare lawyer Michael D. Finn for their article “The Hard Sell Comes Roaring Back,” he introduced a phrase that has since become synonymous with timeshare contracts: The “Salesman’s License To Lie” clause. He noted how non-reliance clauses are used commonly within these contracts and declared them to be the most powerful way for timeshare salespeople to try to evade consequences for false verbal claims made during negotiations.

What Is a Non-Reliance Clause

Non-reliance clauses typically state something like “Buyer acknowledges that all representations, agreements, and understandings between Buyer and Seller relating to the timeshare property are in  writing only and no oral statements shall be binding or relied upon by either party”. This means that non-reliance clauses explicitly signify that the timeshare developer will not recognize any verbal misrepresentations or omissions that might have occurred during a sales presentation to be a legitimate grievance. If a timeshare owner decides to take legal action against the seller, any action based upon what was said will be challenged on the basis of this clause.

In short, verbal misrepresentation is a tricky matter when it comes to timeshare contracts. Non-reliance clauses make it hard for buyers to win cases where verbal misinformation has been provided by sellers, but with experienced legal representation, this type of situation can still be rectified and often through negotiation.

Verbal misrepresentations can not be relied upon in a non-reliance clause

Verbal Representations and Non-Reliance

At this point, you may be wondering how non-reliance clauses can hold up in court given their inherently one-sided nature. That’s what John Oliver sought to uncover on his show. Although non-reliance clauses may seem morally unacceptable or illegal, they can be a difficult legal obstacle to deal with in court. You need expertise of an attorney to help you understand if you can overcome such a clause.  Our experienced timeshare attorneys can help you understand whether you can successfully argue this point.

Let’s take a closer look. When you attend a timeshare presentation, it can drag on for hours – up to six hours in some cases. During this time, people have reported verbal misrepresentations like exaggerating the benefits of ownership or omitting important information altogether. It’s not surprising to discover verbal claims can be difficult to prove due to a lack of evidence. On the other hand, written misrepresentations are easier for owners to prove in court since there is an obvious paper trail behind them.

Owners of timeshares are often faced with a wide range of pressures, from skyrocketing maintenance fees to limited exchange options. Adding insult to injury is the difficulty in accessing resort reservations included in their agreement or club membership – not to mention that reselling can be virtually impossible without taking a considerable, if not a complete, loss due to misleading sales strategies and strict developer rules for resale buyers. This leaves some feeling helpless and desperate for an escape route.

When timeshare companies abuse consumers during the sales tour, it can be difficult for consumers to make sense of the situation and stand up against these unjust tactics. Nevertheless, consumers are not defenseless; by taking action and asserting their rights, they can reclaim control over this ordeal. This is where timeshare lawyers come into play; helping individuals navigate the legal process of holding those who made verbal misrepresentations accountable.

Verify statements in timeshare contracts

Oral Agreements Can Be Hard To Verify

When it comes to verbal misrepresentation in the timeshare industry, buyers must remain vigilant; since oral agreements are hard to verify without additional documentation and non-reliance clauses may limit an owner’s capacity for legal action against a deceitful seller. Fortunately, owners can take heart with experienced timeshare attorneys by their side—ready and willing to fight any fraudulent behavior they encounter.

That’s why verbal misrepresentations need to be addressed with the full power of the law. Experienced timeshare attorneys have the resources and expertise to successfully argue this point and can help those who have been taken advantage of by verbal claims in timeshare transactions. An experienced legal professional will vigorously advocate for your rights and seek justice against those who misled you through deceptive statements. With seasoned counsel at your side, you can stand up to unscrupulous actors and demand accountability for fraudulent misrepresentation.

To sum it up: Verbal representations are much harder to prove than written ones, but with experienced legal representation, they might still form a basis for a successful case against a timeshare seller. Non-reliance clauses may appear one-sided, but they do not necessarily absolve sellers from liability when it comes to verbal misrepresentation in timeshare. Don’t let this discourage you from seeking justice when needed!

This article is intended for information purposes only and is not intended to substitute for legal advice. It is always advisable to seek the counsel of an experienced timeshare lawyer before making any decisions about your case.


Led by timeshare attorneys J. Andrew Meyer and Michael D. Finn with over 75 years of combined legal experience. At Finn Law Group, we understand timeshare contracts and know how to identify when a non-reliance clause has been abused or used to unfairly protect timeshare sellers from liability for verbal misrepresentations. We specialize in fighting for timeshare owners’ rights so that they may have the opportunity to receive fair relief due to non-reliance clauses and other factors. If you feel you need to speak to someone about your rights, contact us. The call and the consultation are free. (855) FINN-LAW

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