What to Know about Timeshare Cancellation
What to Know about Timeshare Cancellation
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Canceling A Timeshare Contract: What You Should Know
Buyer’s remorse. That’s a thing. That’s one apparently common feeling that many timeshare owners develop hours, days, or months after purchasing a timeshare. If you currently own a timeshare, the chances are that you’re already thinking of how to get rid of it— for any reason.
Owning a timeshare comes with some thrills and benefits, especially for vacation lovers who want to avoid finding a new vacation spot every year. In spite of this, many timeshare owners regret their purchase once they realize some lies they might have been told by timeshare salespersons.
It is no news that, although owning timeshares might be an enjoyable and memorable way of vacationing with loved ones, the means by which most developers get people to buy the timeshares are often deceitful or forceful. Oftentimes, timeshare companies make use of hard sales tactics in addition to various manipulative marketing gimmicks just to get an unsuspecting victim to enter into a contract with them.
Some sales representatives are so mean that they tell lies and say that timeshares are valuable and can be kept as an investment. As such, many innocent people just seeking an honest holiday eventually fall for these bogus claims, perhaps thinking it would be a good thing to leave to their children. Sad stuff.
The truth about timeshares is that their values begin to depreciate immediately after purchase, so they hardly hold any real value, unlike real estate. In fact, owning a timeshare forces you into a lifetime of paying maintenance fees that keep increasing, even when some unfortunate life circumstances come your way.
So, if you ever feel the need to get out of your timeshare contract, and you are wondering how, then this article is for you. We will go into detail about the different ways you can get rid of your timeshare contract.
Is it Possible to Cancel a Timeshare without Any Costs?
A timeshare owner seeking to get rid of his or her resort contract would probably not want to go through any financial troubles again, especially since owning a timeshare itself is a financially draining experience.
It is in fact possible for you to cancel your timeshare contract for no cost at all. Yes. This happens through what is known as “cooling off” or rescission period. During this period, you are allowed to rescind your contract within a stipulated period of time under the law— which could be up to 2 weeks— immediately after purchasing your timeshare or receiving your disclosure statement.
Note that different states in different countries have various “cooling off” periods. Some state laws give the grace of five days, while some give 10 or 14 days. In the United States, for instance, the laws of Florida permit a 10-day rescission period, but in Colorado, only 5-days are permitted.
Moreover, there are indications that Mexico also allows for a 5-day cooling off period. Just make sure to get specific details about what your state provides.
For clarity, it is important for you to also note that the state you’re concerned with is the one in where your timeshare is located, not the state of your residence. Likewise, you are advised to read through your resort contract carefully to know the specific provisions of your resort with regards to rescission— and make sure that you are not taken advantage of.
What if you Missed the Cooling-Off/Rescission Period?
When the Deed Back Doesn’t Work for you…
You could also decide to sell your timeshare to a new owner, either through a listing website or through a timeshare resale company. This way, the new owner begins to take the responsibility of paying the associated future fees.
But as sweet as this seems, it is not a guaranteed result. Many timeshares are listed for as low as $1 on different platforms like eBay and Craigslist. And this is due to the fact that timeshares are liabilities that only reduce in value. So, in short, the resale route may not be the best for you.
A much better alternative is to hire a timeshare exit company. Typically, such companies use attorneys and seasoned professionals who are well-versed at handling timeshare cases. So, they are familiar enough with the tricks in the industry, as well as how to crack them.
Although you may have to pay for the services (usually a thousand dollars or more), the payment is minimal, provided the cancellation of your contract is guaranteed and you are at no risk of being scammed. In fact, an honest cancellation company will even try to help you if they feel that your case is hopeless.
We always advise timeshare owners to hire timeshare exit companies that offer the option of paying through escrow, as this eliminates any financial risk to the customer. It might interest you to know that a timeshare cancellation company that uses escrow will not receive any money until they have completed your job, because your payment will be locked in a third-party account.
This serves as a motivation for the company to resolve your case as effectively and quickly as possible.
Generally, timeshare cancellation requires a considerable level of care. You can’t jump into action, instead you must make sure you understand the situation and how best to tackle it. Keep in mind that your timeshare contract is an essential document through which you can get key info regarding rescission and the deed back program. So be sure to take note of any important instructions and follow through as necessary.
If you be unable to take advantage of the rescission period or the deed back program, note that using an exit company is the next best option. However, remember to hire one that uses escrow, or at least takes low upfront fees, so as to reduce all risks to a minimum level.