If you’re considering a timeshare, or if you’ve recently bought one, it’s not hard to see the appeal. The timeshare industry is a sector offering vacation ownership opportunities, allowing consumers to secure resort accommodations annually through various programs. Though Americans haven’t returned to the $1.2 trillion we spent on travel before the pandemic, the vacation industry is slowly springing back, and there’s nothing like a timeshare to bring visions of sandy beaches, resort towns, and winter getaways.
Of course, those fantasies don’t always match the financial reality of vacation ownership. Vacation ownership can come with challenges and pitfalls, as highlighted by the timeshare industry. For new owners, it’s not uncommon to research how to cancel a timeshare contract soon after the purchase!
Getting out of a timeshare contract can be expensive, confusing, and tricky, but it’s not an impossible feat. If you want to get rid of your timeshare, here are a few tactics worth trying.
Cancel During Your Rescission Period
The best way to get rid of a timeshare is to cancel early. Most timeshares are governed by state law, and most states provide a “cooling-off” or rescission period after signing a timeshare contract, typically lasting between 3 and 15 calendar days. This period allows you to act quickly and cancel your timeshare contract without penalty. For example, in Florida, buyers have 10 calendar days from the date they receive the signed purchase documents to cancel their timeshare and receive a refund.
This cooling-off period, also called a rescission period, will vary from state to state. Some states stick to the three-day rule, while others offer new owners a week or more to cancel. State law often requires that information about the right to cancel be included in the timeshare contract, and this right is typically nonwaivable.
The biggest benefits of cancelling during this period are twofold. First, this is the only way to get a full refund of what you paid. Second, you don’t need to dig into your contract or find a reason for cancellation: you have every right to change your mind.
However, if you’re going to get your money back, you’ll have to act quickly. Cancelling during this timeframe means sending a written timeshare cancellation letter to your resort within the required calendar days.
This cancellation letter doesn’t need to be fancy, but it does need to have some key details. You’ll need to include things like a description of the timeshare, the date you bought it, and a clear statement that you want to cancel. Make sure your timeshare cancellation letter explicitly states your intent to cancel and is delivered within the rescission period. Look at your contract for specific requirements.
It’s important to document all communications and send this letter by certified mail with return receipt. This gives you proof of both the date you mailed it and the date the company received the letter.
Find Grounds for Cancellation
What happens if the rescission period is already over? If you’re lucky, you might still be able to find grounds for cancellation in your contract. Timeshare companies design these documents to be hard to get out of, so you’ll have to go through each detail with a fine-tooth comb to see if you have a legal reason for cancelling.
Sometimes, you can find evidence of fraudulent behavior. Here are a few worth considering:
- Lies about fees or interest rates
- Hidden limitations, such as blackout dates that weren’t disclosed up front
- Claims that timeshares offer tax perks, which is not true
- A promised gift or bonus that you never received
In addition, you may be able to get out of your contract if the company used intimidation tactics to sell to you.
If you feel like you’re a victim of fraud, now is the time to consult a reputable timeshare law firm. It is important to consult a lawyer or attorney who specializes in timeshare contracts to review your situation. Timeshare attorneys can help you understand whether you can make a claim based on the details of your specific contract and situation. If misrepresentation or deceit occurred during the sales process, a timeshare attorney may assist in negotiating a release from the contract. If they can help prove that your contract is invalid for some reason, you may be able to cancel your contract, get your money back, and even get compensation.
Partner With a Timeshare Exit Company
If the options above don’t work for you, it may be time to get in touch with a timeshare exit company. However, many self-proclaimed exit companies promise quick and easy timeshare cancellation solutions, but the reality is often more complicated and less favorable than advertised. The vast majority of timeshare exit companies are scammers who take upfront payments or fees without delivering results.
It’s important for consumers to be extremely careful with this process. Avoid paying large upfront fees to third-party exit companies, as many are scams according to the FTC. Always verify the legitimacy of any company through the Better Business Bureau (BBB) or other business bureau resources before proceeding. Because they know that new owners are often desperate to get out of their timeshares, fraudulent companies will take advantage while using fear-mongering and high-pressure tactics.
In other words, do your homework. Look for a company that has been in business for at least five years, look at their online reviews, and check for a money-back guarantee. Make sure you understand exactly what the fee covers and all charges involved before agreeing to any service.
Reputable timeshare exit companies may help you in several ways. They can negotiate with developers and help you cancel your mortgage, and guide you through legitimate exit strategies and exit options.
In addition, they can help you transfer your title, which is often the easiest option. If you have a friend or family member who is interested in your timeshare, or if you’ve found a buyer through an online marketplace, a timeshare transfer company can help you with the paperwork. This transfer can help you avoid any additional fees.
Note that the details of your solution will depend on your situation, preferences, and financial standing. You should always expect a personalized plan from a timeshare exit team, as there’s no one-size-fits-all solution to getting out of a timeshare obligation. For trustworthy information and support, the American Resort Development Association provides resources and education for timeshare owners considering exit strategies and options.
Donate Your Timeshare
This option is often a last resort, as few legitimate charity organizations are interested in timeshares. Because timeshares depreciate over time, and because they will require the charity to pay ongoing maintenance fees after the donation, many organizations won’t accept them.
Your ownership type—such as whether you have outright ownership without a mortgage or still owe on a mortgage—affects your eligibility to donate. In addition, keep in mind that you can’t donate a timeshare if you haven’t yet paid off your mortgage in full. You may also have to get a private appraisal of your timeshare to determine its value.
The resale market for timeshares is also challenging, with most timeshares selling for significantly less than the original purchase price, often due to high maintenance fees. In fact, many timeshares sell for very low amounts, sometimes as little as $1, because of these ongoing costs.
To donate your unwanted timeshare, find a charity that is willing to accept it. We recommend looking for reputable charities that are transparent about their financials. You’d be surprised how many timeshare-related scams exist, even when it comes to timeshare donations!
If you find a reputable charity, the process can often be faster than the process of selling a timeshare. Even better, most charities can help take care of the title transfer on their own. However, you should still expect to pay fees until the donation is complete.
Stop Making Payments
While stopping payments on your account or loan balance might seem like a way to get out of your contract in the long term, we don’t recommend this course of action unless you have no other options. Stopping payments without a finalized legal exit plan can lead to foreclosure and significantly damage your credit score.
If you stop paying your annual fees and loans, a few things can happen.
First, you can expect your credit score to fall. Timeshare companies often partner with collection agencies that are happy to chase after you for the money you haven’t paid.
You’ll also open yourself up to the chance of foreclosure. Worse, if the resort files a lawsuit, you may be on the hook for legal fees and other costs. Wage garnishment is also a possibility.
Before deciding to stop payments, it’s important to review your account and loan balance with the timeshare company or consult a legal expert to understand your options and the potential consequences.
In some cases, however, timeshare companies won’t be willing to go through all this trouble. Instead, they’ll accept your surrender of the property and spend their efforts on remarketing it instead of chasing after you for payments. Of course, it’s hard to tell when a resort will choose this option, so we don’t recommend taking the chance!
Filing for bankruptcy can make it easier to stop making payments. This isn’t the right solution for everyone, and it has its pros and cons, but it can put an end to collection activity and help you get rid of debt.
Know How to Cancel a Timeshare Contract
Here’s the bottom line: timeshare owners should fully understand the terms of their timeshare agreement and the role of timeshare developers and timeshare companies before purchasing or signing any deal. If the rescission period has passed, your options for getting out of a timeshare may include selling it, donating it, or negotiating a deed-back deal with the resort or timeshare company, but these options are often at the developer’s discretion. Many resorts offer deed back programs or surrenders for timeshare cancellation if your financial obligations are current, though this typically requires negotiation and the company’s consent. Renting out your timeshare can also be a viable way to recoup annual fees, but always check your contract for any restrictions on rentals. Decide on the best exit strategy for your situation and seek professional advice before signing any new agreement.
If you’ve already bought a timeshare and need help getting out of it, we’re here to help. Lonestar Transfer has gotten thousands of happy customers out of their timeshare obligations, and we’re ready to work with you as well. To learn more about what we do, contact us today for a no-risk, free consultation.
