How many days does a developer have to refund deposits if a purchaser cancels their contract?

The correct answer indicates that a developer has 20 days to refund deposits if a purchaser cancels their contract. This timeframe is significant because it is established by law to protect consumers in real estate transactions, especially in timeshare sales where consumers may feel pressure to make a quick decision.

The 20-day period allows buyers to reconsider their commitment and ensures they can recoup their deposits if they change their mind within a reasonable timeframe. This regulation is intended to enhance consumer rights by providing a buffer against impulsive purchasing decisions and ensuring transparency in the selling process. Hence, it is crucial for developers to be aware of this timeline and adhere to it, as failing to comply could lead to legal repercussions and damage to their reputation.

In contrast, the other suggested timeframes do not align with the statutory requirement, which is firmly set at 20 days, reinforcing the necessity for compliance by developers in their dealings with purchasers in the timeshare industry.