Buyers remorse is a common feeling after buying a timeshare. The high you feel during the charismatic sales presentation quickly wears off after you realize the expensive bill you just added to your budget.
Knowing how to cancel a timeshare can be your saving grace when you’re ready to call it quits. Take a look at this step by step guide to legally cancel your timeshare.
How Long Has it Been?
The first thing to review when you’re considering canceling your timeshare is how long its been since you signed up. If you’re within a few days of signing the contract, you have the option to cancel without penalty.
Some states offer a longer cancellation period. For example, if you live in Michigan, you have 9 days to cancel a contract if you get buyer’s remorse.
In most states, the cancellation period ranges from 5 to 7 days. Keep in mind that you don’t owe the timeshare company an explanation for the cancellation.
Changing your mind is enough of a reason to back away from a timeshare agreement. The rescission period should’ve been discussed during the sales presentation.
While the timeshare team dazzled you with glamorous vacation options, they were also legally required to inform you about the mandatory 3 day cancellation period.
Sometimes in the thrill of the chase, sales teams forget these facts which lead buyers to believe they’re stuck with their timeshare agreements.
Where you live can be a gift or a curse when trying to get out of an unwanted agreement without hassle. Consult with an attorney to learn how local laws apply to your contract.
Review Contract Details
The rescission period isn’t the only legal grounds for canceling your timeshare contract. False promises are common during timeshare presentations and they are not legal ways of getting you to enter an agreement.
If you were in any of the following situations, you have a legitimate reason to cancel.
Timeshares Offer Tax Benefits
If you were told timeshares offer tax benefits, you have grounds for cancellation. Salespeople sometimes get creative in presenting timeshares as ‘investments.’
They mention all the tax perks you’ll receive by owning property. But this strategy is illegal. If you’ve been sold on the idea that you’ll get tax deductions as you would with real estate property, you should contact our team right away.
Undisclosed Fees and Limitations
Timeshare presentations focus on the glamor of vacation destinations. You’ll hear about the number of pools at popular destinations and signature cocktails at the restaurant on site.
But rarely are things like blackout dates and special fees mentioned when you’re making the purchase. If you’re in a timeshare agreement that has lots of hidden fees just to use the service, you should consider getting that contract canceled.
It’s the obligation of the timeshare company to disclose any limitations on travel and let you know about related expenses upfront. These costs are just as important as the monthly payment you make toward membership.
No Gift Included
Were you promised a gift or bonus in exchange for attending a timeshare sales presentation? If they refused or withheld the gift until you signed a contract, this gives you the right to cancel.
It’s false advertising if you weren’t told upfront that the gift was only available for contract signers. Many people would opt to skip the presentation if it meant being obligated to spend tens of thousands of dollars.
Some salespeople are intimidating making it hard for buyers to say no. If the salespeople used fear tactics to get you to commit to a timeshare purchase, you should reconsider your agreement.
Chances are high that this timeshare provider hasn’t used this strategy only once. Talk to a consultant to learn ways to prove you were coerced into making a commitment.
How to Cancel a Timeshare After Changing Your Mind
Buyers remorse doesn’t just apply when you’ve been scammed. Sometimes, everything goes smoothly and ethically during the sales presentation but after visiting the destination you are no longer interested.
Don’t feel like you have no options just because you signed an agreement. There are ways to remove financial obligation legally.
One way is to sell the timeshare. You’re not the only person looking for a vacation escape.
Legimitate timeshare offers are attractive to a wide range of buyers. The fact that you’ve already traveled to the destination and vetted the company gives you first-hand reviews to sell to buyers.
Some timeshares allow you to simply pay a fee and exit the agreement. It’s called a “deed-back/surrender” option.
It means you can surrender your timeshare after paying a flat fee. Expect the fee to be pricey since the company is now missing out on monthly payments from years of membership.
Can I Just Stop Paying for My Timeshare?
Think hard about how to cancel a timeshare based on your circumstances before letting the property go. The long term financial consequences aren’t usually worth walking away without trying to legally let go of the deal.
When you don’t pay the mortgage or fees, the timeshare company has a right to place a lien on your credit report. They’ll usually repossess the property as well.
When the timeshare lien and foreclosure both appear on your credit report, it could hurt your chances of qualifying for mortgage or car loans in the near future. Don’t let bad timeshare debt ruin your credit.
It’s important to have the right team in your corner to advise you of your options every step of the way. For more information or to schedule a timeshare cancellation consultation, contact us today.