If you’ve recently purchased a timeshare property and have changed your mind, you may be wondering if there is a way to cancel your contract. Fortunately, there is a legal right of rescission that allows timeshare owners to cancel their purchase within a specific timeframe without penalty. In this article, we will explore what the right of rescission is, how it works, and what you need to know about canceling your timeshare contract.
What is the Right of Rescission?
The right of rescission is a legal protection that allows consumers to cancel certain types of contracts within a specified timeframe. The right of rescission is typically provided by law and gives consumers the opportunity to change their minds after making a purchase. The right of rescission is designed to protect consumers from being locked into a contract that they may later regret.
The right of rescission applies to many types of contracts, including timeshare purchases. Under federal law, timeshare owners have the right to cancel their contract within a period of time after signing it. The exact timeframe varies depending on the state and the type of timeshare contract, but it is typically between three and ten days.
How Does the Right of Rescission Work for Timeshares?
If you have purchased a timeshare property and want to cancel your contract, you need to act quickly. The exact timeframe for cancellation will depend on the state and the terms of your specific timeshare contract. Typically, you will need to notify the timeshare developer or seller in writing within the specified timeframe.
Once you have notified the developer or seller of your intent to cancel, they are required by law to provide you with a full refund of any money you have paid, including any down payment or deposit. The refund should be provided within a certain timeframe, which is also determined by state law. In some cases, the developer or seller may be allowed to charge a reasonable fee for processing the cancellation.
It is important to note that the right of rescission only applies to new timeshare purchases. If you have purchased a resale timeshare or have already used your timeshare, you may not be eligible for the right of rescission. Additionally, if you have exceeded the cancellation period specified in your contract, you may not be able to cancel your timeshare.
If you missed the timeshare rescission period, you are best course of action is to work with a timeshare exit company. These companies specialize in timeshare cancellation for owners that were pressured or misled into their timeshare purchase. If you feel this was your case, contact us so we can quickly go over your exit strategy and see which is the right timeshare exit company for you.