Like most industries during the pandemic, timeshare sales have taken a hit. According to the 2021 State of the Vacation Timeshare Industry, total sales volume decreased by about 53% in 2020.
Unfortunately, many people remain stuck in timeshare contracts they can no longer afford or don’t have the time to use. When using a professional timeshare cancellation service, it’s possible for people to cancel their timeshares legally.
Below are some ways to legally cancel timeshares.
Take Advantage of the Rescission Period
A timeshare’s rescission period is when you can cancel your contract and get a full refund of all money paid. This period is typically three days long, though it can be longer in some states. For example, Nevada law states that timeshare purchasers can cancel until midnight of the fifth calendar day following the date the contract was signed.
So before you even sign anything, ensure you know exactly when your rescission period expires, just in case you change your mind later. Cancellation is generally made in writing.
Terminate in Writing
You can write a letter to your timeshare company stating that you’re terminating your contract and exercising your right to rescind. This letter must be sent through certified mail with a return receipt requested so you can prove you sent it.
When writing a cancellation letter, include the following:
- Current date
- Purchaser’s full name (as noted on the contract)
- Purchaser’s address and contact details
- Name of the timeshare company
- Timeshare description (refer to your timeshare paperwork)
- Timeshare purchase date
- A clear statement that you are rescinding the contract
The information included in the cancellation can differ depending on the state where you purchased your timeshare. In some cases, you may be asked to deliver the cancellation letter in person to a local office of the timeshare company.
Consider looking into your state’s laws and regulations to be sure you’re compliant with their requirements or preferred method of canceling a timeshare.
Canceling After the Rescission Period
Once the rescission period has passed, you will no longer be able to cancel your timeshare for a full refund. However, that doesn’t mean all hope is lost. You still have some options when it comes to canceling your timeshare.
- Selling your timeshare: If you no longer want it, selling it is an option to pass on the responsibility and expenses associated with the contract to someone else. To ensure the transfer is done legally, you must follow all steps outlined in your agreement or contact your timeshare company for assistance.
- Donating your timeshare: You may also find a charity willing to accept your timeshare donation. Before you donate, check with a tax professional to determine if the donation is eligible for a tax deduction.
- Renting your timeshare: If you cannot sell or donate it, you can try to rent it out when you won’t be using it. This way, the rental income can help offset maintenance fees and other costs associated with owning a timeshare.But ultimately, you are still liable and legally the owner of the timeshare.
Hiring a Timeshare Exit Company
Some companies provide timeshare cancellation services. These companies usually have a network of lawyers who can help you find the best way to exit your timeshare legally. They are your best option if you want to cancel your timeshare, but lack the time or know-how to do it yourself.
Even if you’re still within the rescission, these companies have the expertise to file all the paperwork necessary for a successful cancellation. The process may be far more complex than simply sending a letter, so having professionals help you can be invaluable.
Consider Your Options
Canceling your timeshare is possible, but it often requires patience, research, and compliance with legal requirements. Hiring a professional can help ensure that the process is done properly and that all the necessary paperwork is filed correctly. This will give you peace of mind knowing that your timeshare has been officially canceled—and the sooner, the better.
Lonestar Transfer is ready to provide assistance with terminating your timeshare contract and guide you through the process. Contact us today to request a free consultation.