Many individuals who own timeshares have discovered that they are more expensive than they were initially told during the sales pitch. With annual maintenance fees, repair and improvement assessments, and additional fees, owning a timeshare may not be worth it.
Unfortunately, timeshares are difficult to escape, and owners often feel trapped due to complex contracts, unethical practices by timeshare companies, and a lack of value. However, there are solutions.
This article will explore three common methods of escaping a timeshare: using legal means to cancel the timeshare contract, selling or renting out the timeshare, or hiring an attorney to sue the timeshare company to terminate the contract. However, it’s important to note that not every method is suitable for every situation, and it’s crucial to seek guidance from an experienced timeshare exit company to determine the best course of action for your needs.
Method 1: Cancel Timeshare Contracts Using the Contracts’ Own Terms
Most timeshare purchase agreements include provisions for cancellation, but these are typically mandated by state law rather than being a voluntary offering from the timeshare company. Despite this, there are usually significant limitations on the right to cancel, and strict adherence to the contract’s specific procedures is necessary to cancel a timeshare successfully.
Generally, timeshare contracts can only be canceled if the purchase was recent and specific cancellation procedures are followed. These procedures typically involve sending a cancellation letter to a specific address in a particular way, with proof of every step of the process required. However, even if all the procedures are followed correctly, it is critical to keep proof of the process, such as receipts and documentation.
Although it is possible to draft and send a cancellation letter without assistance, it is worth noting that timeshare companies have extensive experience with such situations and may exploit any errors made. As a result, it is advisable to seek the assistance of an experienced timeshare exit company.
Method 2: List Timeshare Units and Interests for Sale or Rent
Many timeshare salespeople use the tactic of promoting timeshares as a good investment to convince potential buyers to make a purchase. However, this claim is far from the truth. In reality, most timeshares tend to lose their value over time and are challenging to sell on the resale market. Owners may even resort to giving them away for free or almost nothing to avoid paying high maintenance fees.
Furthermore, the option of renting out a timeshare may not be as lucrative as claimed by salespeople. Certain timeshare contracts prohibit renting out units, while others require additional fees to do so. It may be best to work with a reputable real estate agent specializing in timeshare sales to sell a unit, but finding a buyer for anything less than a highly desirable location may be difficult.
While some timeshare companies may offer “deed-back” programs, these may not always be cooperative and require up-to-date fee payments and unit ownership. The company may take the unit back, and you may have to pay a deed-back fee without making any profit. In conclusion, investing in a timeshare is typically not a wise financial decision.
Method 3: Get a Lawyer and Sue the Timeshare Company
Taking legal action against a timeshare company is a rare occurrence for timeshare owners and should only be considered as a last resort due to the high costs involved. Instances where a lawsuit may be necessary include cases of fraud where the buyer was deceived into signing a contract or when the timeshare company breaches a significant term of the agreement. In such situations, a court may order the contract rescinded or allow the owner to terminate the agreement.
However, pursuing a lawsuit without legal representation is not recommended and is unlikely to succeed. It is crucial to seek guidance from a timeshare attorney or law firm, who may charge fees by the hour. Moreover, legal proceedings can be protracted and take years to conclude. Thus, legal action should only be taken after all other options have been exhausted.