A study by the University of Central Florida found that 85% of timeshare owners go on to regret signing the contract. While some of these individuals are eventually able to get out of their timeshares, many remain stuck long past when they really want to be. Many owners are burdened by annual maintenance fees, which can make timeshare ownership costly over time.
Do you own a timeshare? Are you looking to get out of it? Many owners struggle to exit their timeshares due to ongoing costs and limited options. Then this is the article for you.
Below, we’re going to show you how to get rid of a timeshare, providing you with 3 strategies to utilize. The most common methods to dispose of a timeshare include contacting the resort for a deed-back, selling it on the resale market, or hiring an exit company.
Strategies to Cancel a Timeshare
There are a number of different exit strategies you can utilize to cancel a timeshare, including resort-sponsored programs, resale options, and legal termination methods. We’ll discuss the most prominent strategies below.
Before proceeding, it is essential to review your original contract and understand the relevant state laws that may affect your rights and options for getting rid of timeshares.
Remember, the legal process for terminating or selling a timeshare begins with understanding the specific contract terms and acting within the legal “cooling-off” windows.
Take Advantage of the Rescission Period
In most states, timeshare purchases are subject to a rescission period, also known as the “cooling off period.” This is a legally protected window of time directly after the purchase during which buyers can cancel their contracts fully and without penalty. The cooling off period is crucial because it allows timeshare owners to reconsider their decision and exit the contract if they choose. The Federal Trade Commission (FTC) plays an important role in protecting consumer rights during the cooling off period, ensuring buyers are safeguarded from unfair or deceptive practices. Once a contract is rescinded during this period, buyers have no further obligation in terms of paying for their timeshares and are entitled to a full refund.
Note, though, that rescission periods don’t last long. The rescission period for timeshare contracts varies by state, typically lasting from 3 to 15 days after signing the contract. At their shortest, they tend to last around 3 days. At their longest, they last around 15 days.
Each individual state has its own rescission period laws. Whereas a state like Alaska has a 15-day rescission period, a state like Ohio has a 3-day rescission period. In Florida, the rescission period for timeshare contracts is 10 days from the date the buyer receives the signed purchase documents.
In any case, you need to look up the rescission period laws for the state in which you’ve purchased your timeshare. These will provide you with specifics, such as when the rescission period begins, when it ends, and any mitigating factors that may exist. During the rescission period, timeshare owners can cancel their contract legally without penalty and receive a full refund.
Regardless, you need to act fast. If you’re serious about rescinding your timeshare contract, it’s vital that you do it within the rescission period. This gives you the best chance of canceling your timeshare without having to pay any fees.
Now, how do you go about canceling a timeshare within the rescission period? It’s as simple as mailing a cancellation letter to the resort’s cancellation address. This should be included somewhere within the timeshare contract.
If it’s not in the contract, or if it’s extremely well-hidden, you should call the resort and ask them for the address. They are legally required to give it to you.
But what if the resort tries to act like they didn’t receive your cancellation letter? You can get around this by sending it through USPS-certified mail. This way, they’ll have to sign it upon delivery, thus proving that they did, indeed, receive your letter. Proof of timely rescission can be established by sending the cancellation letter via certified mail with a return receipt.
Make note that, in the vast majority of cases, resorts aren’t allowed to charge cancellation fees during the rescission period. So, if yours tries to charge you, you should resist it as much as possible. In extreme cases, you should consider getting a lawyer involved.
Sell It Back
A straightforward way to get rid of a timeshare is through a deed-back program, where you transfer the deed back to the resort or developer. Many major timeshare developers have official deed-back or surrender programs that allow owners to return their timeshare voluntarily, but these are typically only available if your timeshare is fully paid and all maintenance fees are current. Resorts may not always advertise these programs, so persistence and professionalism are necessary when negotiating with resort management. Check your contract for any language about deed-back or surrender options, and contact the resort directly to inquire about their deed-back program.
Deed-back programs usually require that your timeshare is fully paid and that you are current on all fees. If you qualify, this can be the most cost-effective legal exit if you are past the rescission period. However, if the resort refuses to take back your timeshare, you can attempt to sell or transfer it, usually at a significant loss.
Find a Legal Loophole in the Selling Process
Cancelling a timeshare after the recession period has ended isn’t always easy. In fact, it can be extremely difficult. However, there is a way to make it happen; namely, you can find a legal loophole in the sales process. Misrepresentation or undue pressure during the sales process can be legitimate grounds for cancellation.
Common legitimate reasons for timeshare cancellation include financial hardship, health issues, and misrepresentation during the sales process. When preparing to request a cancellation, owners should be ready to present clear reasons for their decision, as this can help when negotiating with the resort.
Maybe you can prove that the resort sold you the timeshare under false pretenses. Perhaps there was something promised by the resort that has never come to fruition.
If the resort mismanaged or lied about any aspect of the selling process, there’s a chance that you could cancel the timeshare on legal grounds. This would enable you to get out of it scot-free.
Of course, doing this isn’t simple. Not only do you need to find the loophole but then pressure the resort to cancel the timeshare as a result of it. Odds are, you don’t have the time or resources to do this yourself.
Therefore, if you’re going to do it, you should utilize the services of timeshare lawyers. They’ll take on the bulk of the work, and do everything they can to ensure that your timeshare is cancelled.
Yes, you’ll obviously have to pay your lawyers. But when the timeshare is cancelled successfully, your total financial obligation will be substantially less than what it would have been otherwise.
If the rescission period has passed, owners may still be able to terminate their agreement for reasons such as misrepresentation or undue pressure during the sales process.
Interested? Learn more about timeshare cancellation now.
Hand It Over
Another option to consider is to simply hand the timeshare over. Give it back without getting anything in return. The majority of resorts will allow you to do this, as they stand to make substantial profits from it.
However, if you stop paying your timeshare maintenance fees, it can lead to foreclosure, which will negatively impact your credit report and credit score for years. Stopping payment is not recommended unless all other options have been exhausted, due to the severe and long-term damage it can cause to your credit report.
The downside, of course, is that you’ll lose thousands of dollars. The upside, though, is that the problem will be off your hands. You’ll no longer have to pay maintenance fees, and you’ll have peace of mind that the dilemma is finally over.
This is a last resort but it’s not something you should write off completely. At the very least, keep it in the back of your mind.
Avoiding Timeshare Scams
When it comes to timeshare exit, protecting yourself from scams is just as important as finding the right exit strategy. With so many timeshare exit companies advertising quick solutions, timeshare owners need to be vigilant and informed before making any decisions about their timeshare contract.
Scammers often target timeshare owners who are desperate to escape mounting maintenance fees or annual fees, using tactics like demanding large upfront fees, making unrealistic promises, or pressuring you to sign a contract on the spot. To avoid timeshare exit scams, it’s essential to do your homework and take the following precautions:
- Research the company thoroughly: Always check reviews and ratings on trusted sites like the Better Business Bureau. Look for a proven track record and see how the company handles complaints.
- Be cautious with upfront fees: Legitimate exit companies rarely require large payments before any work is done. Be wary of anyone who asks for money before explaining the cancellation process or providing a clear plan.
- Read every contract carefully: Never sign anything without fully understanding the terms and conditions. Make sure you know exactly what services you’re paying for and what results are guaranteed.
- Verify company credentials: Confirm the company’s physical address and contact information. Check if they are members of reputable organizations like the American Resort Development Association (ARDA).
- Work with professionals: Consider consulting licensed real estate agents or attorneys who specialize in the timeshare industry, especially if you’re considering selling your timeshare on the resale market.
Understanding your legal rights as a timeshare owner is crucial. Timeshare contracts can be complex, and knowing your obligations—such as ongoing maintenance fees and annual payments—can help you avoid costly mistakes. If you’re facing financial hardship or simply can’t travel anymore, explore all your exit options, including selling on the resale market, renting out your timeshare property, or transferring ownership. However, be aware that stopping payments without a legal exit can damage your credit and lead to further legal trouble.
Careful planning and keeping detailed records of all correspondence, contracts, and payments will protect you throughout the timeshare cancellation process. By staying informed and working only with reputable exit companies, you can avoid timeshare exit scams and find a safe, legal way to end your timeshare ownership.
In summary, avoiding timeshare scams comes down to diligent research, understanding your legal rights, and never rushing into agreements. With the right approach, timeshare owners can exit their contracts safely and protect themselves from unnecessary financial and legal risks.
Successful Grounds for Timeshare Cancellation
You may be able to cancel your timeshare, regardless of whether or not promises were made. Before proceeding, it is important to understand your timeshare contract legally and to gather your original contract and maintenance fee history. When navigating legal termination, make sure to organize all relevant documents, including the original purchase contract and maintenance fee history. That said, if promises were made and not upheld, you’ll have a much better chance of cancelling successfully. Some of the most common and successful grounds for cancelling a timeshare include:
Being Promised Tax Benefits
Oftentimes, timeshare sellers will attempt to lure buyers in with promises of tax benefits. They’ll tell them that they can write off the fees and expenses associated with their timeshares, incentivizing them to make the purchase.
Now, some of this is true. You can deduct some of your timeshare fees from your taxes, as a timeshare is considered to be a property that you own. But that only if your timeshare seller was entirely honest about what could be written off.
If they were dishonest about even one portion of your potential tax benefits, you have grounds to cancel your timeshare. In essence, this is a huge loophole that is frequently utilized by timeshare cancellation firms. It may very well work out for you.
Being Pressured Into Buying
Do you feel like you were pressured into buying your timeshare? Did the seller use intimidation tactics as a means of getting you to make a purchase? If so, you likely have grounds for cancellation.
Timeshare sellers can’t use fear or intimidation to get someone to purchase one of their timeshares. The buyer must make the purchase under no duress.
It’s common to use this as a reason to get out of a timeshare. You only need one piece of evidence to prove that it’s so, after which, your lawyer can pressure your timeshare seller into letting you cancel.
They Withheld Your Gift
Were you initially lured to your timeshare presentation with the promise of a gift? Was that gift withheld from you because you initially didn’t want to buy a timeshare? Did this result in you eventually buying the timeshare?
If so, you undoubtedly have grounds for cancellation. It is illegal for a resort to promise a gift during a timeshare presentation and then withhold it due to a person not wanting to buy the timeshare. This and this alone can get you out of your timeshare for good.
They Never Told You About the Rescission Period
Under federal law, timeshare sellers are required to inform timeshare buyers of state rescission periods. This is the period during which you can get out of the timeshare scot-free.
If you weren’t informed of this period at the presentation of your timeshare, you have grounds to get out of your timeshare. It’s that simple.
Not only do they need to tell you that the rescission period exists but the specifics of it as well. For instance, if the period in your state is 3 days, they need to tell you that it’s 3 days.
This loophole is frequently exploited by timeshare cancellation firms, and you can exploit it as well.
Looking to Get Rid of a Timeshare?
Are you looking to get rid of a timeshare currently? Need assistance with timeshare cancellation? If so, look no further than Lonestar Transfer.
We’ve helped clients cancel over 18,000 timeshares. Regardless of the situation you’re facing, we can help you defeat it. Contact us now to discuss your timeshare cancellation needs!
