If a developer cancels a contract during the applicable rescission period, what must the purchaser do?

When a developer cancels a contract during the applicable rescission period, the purchaser is required to return all materials in good condition. This is rooted in consumer protection laws that govern timeshare agreements. The rescission period allows the purchaser a designated timeframe to reconsider their decision and return any materials that were provided, such as brochures, disclosure documents, and other promotional items.

Returning the materials in good condition is important because it allows for the potential resale or reuse of those items by the developer, and it also ensures that the purchaser has made a genuine effort to follow through with the cancellation process. Failing to return these materials, or returning them in poor condition, could jeopardize the purchaser's standing in the cancellation process or even affect their eligibility for any refunds owed to them.

Thus, the obligation to return all materials signifies the final step in the rescission process and underscores the importance of maintaining proper practices in contractual agreements related to timeshares.