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Timeshare Cancellation
How to cancel a timeshare contract?
It can be difficult to get out of a timeshare. Timeshare contracts are written to stick, and developers can make it hard to walk away. However, where there is a will, there is a way to cancel your timeshare legally and safely because it is your right? Timeshare cancellation depends on your position, contract, and timing.
In this guide, we’ll take a look at all timeshare cancellation options. Timeshare cancellation, also known as timeshare exit, is the act of legally terminating your contract. That means you’re no longer responsible for maintenance fees, assessments, or any other expenses. Cancellation procedures will differ according to your agreement, resort rules, and how long it’s been since you bought.
Some owners might be able to cancel quickly, while others may require professional assistance. Knowing the ropes is how you pull off a successful exit.
Utilizing the Rescission Period
The withdrawal period is the simplest and least expensive method of exiting a timeshare. This is a brief amount of time after purchase during which you’re legally allowed to change your mind about whether you want the contract.
You need to check your contract to see how long the rescission period is. This timeframe is usually noted at the start or end of your contract. If you are still within this time frame, contact the resort and send a rescission letter.
Writing a Rescission Letter
Your timeshare rescission letter needs to meet your state’s legal requirements. Include your contact details, a written notification requesting cancellation, and a request for acknowledgment from the resort. Respond promptly and adhere to legal standards, and your letter will be accepted, canceling your timeshare free of charge.
Returning Your Timeshare After the Rescission Period
Exit Programs Offered by Resorts
Some resorts, such as Diamond Resorts or Hilton Timeshare properties, have established exit programs. These include deed-back programs and internal transfers. The best place to start is by asking your resort directly if they offer any such programs. If your resort does not have an exit program, selling or transferring your timeshare may be the only option.
Selling Your Timeshare
Steps to Sell a Timeshare
Begin by locating your original agreement documents. Determine the ownership type, whether it’s deeded property or a “right-to-use” arrangement. Find out whether your timeshare is fixed, floating, or points-based. This is important if you are looking to sell.
Next, pay all dues, including maintenance fees, HOA fees, or other obligations. Then post your timeshare for resale on trusted websites such as Timeshare Users Group, Craigslist, or eBay. Checking “sold” listings can give you an accurate sense of what timeshares are actually selling for.
Be wary of anyone or any entity that offers to market your timeshare for you. Always verify legitimacy through the BBB or the American Resort Development Association.
Working With Third Parties
If the process of selling your timeshare seems too complex, you can hire a third party. These may include transfer companies, exit companies, or timeshare attorneys.
Timeshare Transfer Companies
Transfer companies assist owners in transferring ownership through industry-wide networks. They can help you sell or legally transfer your timeshare. Fees typically range from $500 to $3,000, depending on complexity. Using an established company can make the process much easier and less risky.
Timeshare Exit Companies
Exit companies specialize in legal and negotiation strategies to cancel timeshare contracts. They can identify overlooked legal clauses, communicate with resorts, and even assist with resale.
A critical feature is escrow. Escrow ensures your payment is held by an intermediary until the transaction is complete. This protects you from scams, which are common in the industry. Only use companies that provide escrow services for timeshare cancellation.
Timeshare Attorneys
A timeshare attorney offers legal advice and helps you exit in compliance with state laws. Attorneys are especially helpful for complex contracts or uncooperative resorts. They can prevent credit damage and protect your financial interests.
Timeshare Cancellation by Resort
Common Timeshare Cancellation Methods
There are several legal ways to exit a timeshare, each with its own advantages.
- Rescission Period Cancellation: The quickest and no-cost option if you cancel within days of purchase. Send a legal timeshare rescission letter and request acknowledgment.
- Deed-Back Programs: Offered by some resorts to accept returned timeshares. These programs may have specific requirements, so professional guidance is helpful.
- Resale or Transfer: Selling the timeshare is an option, though resale value is often low. It offers temporary relief while you explore permanent exit solutions.
- Legal Assistance: Timeshare attorneys can file lawsuits or handle complex legal procedures. This ensures a permanent exit with no lingering liabilities.
- Professional Exit Companies: These companies combine legal expertise and negotiation skills. They can spot overlooked clauses, negotiate with the resort, and handle escrow-protected payments for security.
Pros and Cons of Each Timeshare Cancellation Method
- Rescission Period
- Pros:
- Fastest way to cancel
- Free of cost
- Simple process
- Cons:
- Only available shortly after purchase
- Not an option for older contracts
- Deed-Back or Exit Programs
- Pros:
- Legal and authorized by resort
- Sometimes free or low-cost
- Cons:
- Not all resorts offer this
- Specific eligibility requirements may apply
- Resale or Transfer
- Pros:
- Stops ongoing fees and maintenance costs
- Can recover some financial value
- Cons:
- Low resale value for most timeshares
- Time-consuming and requires effort to market
- May not guarantee a buyer
- Timeshare Exit Companies
- Pros:
- Experienced with legal and negotiation processes
- Can handle complex contracts
- Escrow services protect payments
- Cons:
- Can be expensive ($3,000–$5,000)
- Must carefully choose a reputable company
- The process can take months
- Timeshare Attorneys
- Pros:
- Legal protection and expertise
- Can manage difficult or uncooperative resorts
- Ensures a clean exit without lingering liability
- Cons:
- Higher costs (hourly or flat fees)
- The process can take longer than other methods
HELPFUL RESOURCES
Timeshare Cancellation Process
Cancellation procedures differ from method to method, but generally feature the following key steps:
Check Your Contract
Review ownership type, rescission rights, fees, and restrictions. Understanding your legal situation is very important.
Choose Cancellation Means
Decide if rescission, resale, transfer, exit company, or attorney suits you better.
Write a Letter of Rescission
Send a professional letter requesting cancellation; gather documents demonstrating payments and fees. Seek help from an attorney if necessary to enforce rescission.
Dial-In the Resort or Third Party
Call the resort for rescission or exit options. If you are using a transfer company, exit company, or attorney, they navigate negotiations and the legal process.
Third Party Involvement and Payment
If a third party is involved, payment should go through escrow. Escrow ensures your money is not released until you have successfully canceled.
Ultimate Confirmation
Get it in writing that the timeshare agreement is canceled. Retain copies of all communication for your records.
Post-Cancellation Measures
Do not let them charge you again. Correct your credit report if necessary, and keep a record of everything.
Costs to Cancel Timeshare
Timeshare cancellation costs vary depending on the method. Rescission is free, but other methods usually involve fees. Transfer companies charge $500–$3,000. Timeshare exit companies typically charge $3,000–$5,000 for complex contracts. Attorneys may charge hourly rates or flat fees.
Always use escrow services when paying a third party. Escrow protects your money and ensures it is only released after successful contract termination. Avoid companies demanding upfront payments.
How Long does The Timeshare Cancellation Process Take?
- Rescission Period: Typically, a few days to weeks, depending on the state. Fastest method.
- Resale or Transfer: 3–6 months for the first offer and 3–6 months again to achieve the transfer.
- Exit Companies: 6–18 months on average. Complex contracts take longer.
- Timeshare Lawyers: 6 months to over 18 months for litigation.
Avoiding Timeshare Cancellation Scams
The timeshare industry has many scams. Common warning signs include upfront fees, promises of immediate cancellation, unclear credentials, and unrealistic guarantees.
To protect yourself, check BBB ratings and online reviews. Require escrow and ask for proof of legal partnerships or references. Never do business with companies that refuse to provide a written contract. With careful research and prudence, you can avoid losing money and harming your credit score.
Signs To Look Out for in a Timeshare Exit Scam
Timeshare exit scams are a big problem, and as such occur more than you might think. Some companies guarantee immediate resolution or cancellation. Those allegations are nearly always untrue. Some of the most important red flags to look out for are large and upfront fees, unclear or hidden credibility indicators, and pressure tactics that ask you to make a decision now.
Other Warning Signs
Companies that won’t offer written contracts, turn down escrow services, and receive poor online reviews. In certain cases, scammers even pretend to be attorneys or licensed exit outfits. Always check a company’s BBB ratings, request legal documentation, and validate the use of escrow to safeguard payment. Researching ahead of time can save you money and preserve your credit score.
Bottom Line!
Timeshare cancellation is complicated but achievable. Knowing your options is key. Whether using rescission, resale, transfer, exit companies, or attorneys, professional guidance makes the process safer and easier.
Always research, ask questions, and insist on using escrow services for payments. Avoid scams to protect your finances and credit score. Taking the right steps and contacting Timeshare Exit Experts now can save years of stress and financial burden. With a professional, clear process, your timeshare exit can be permanent and stress-free.
Frequently Asked Questions
Why is it so difficult to get out of a timeshare?
Exiting a timeshare is difficult, especially if the rescission period has passed. Contracts are designed to be binding, but with legitimate professional assistance, timeshare cancellation is possible.
Is it possible to get out of a timeshare?
Do not attempt to simply walk away. The resort will continue billing you, and unpaid fees can hurt your credit score. Formal cancellation via rescission, transfer, or legal guidance is necessary.
How long does it take to get out of a timeshare?
It depends on the method. Rescission can be completed in weeks. Transfers, resale, and professional exit services may take 6–18 months. Legal actions take longer but provide permanent solutions.
What is the cost to cancel a timeshare?
Costs vary by method. Rescission is free. Transfer companies charge $500–$3,000. Exit companies usually cost $3,000–$5,000. Attorneys may charge hourly or flat fees.
Are timeshare exit companies trustworthy?
Some are legitimate, but scams exist. Check BBB ratings, online reviews, company history, escrow usage, and legal credentials. A reputable company ensures a safe, legal, and complete exit.
What happens after I cancel my timeshare?
Once legally canceled, you owe no fees or obligations. Keep documentation confirming the cancellation for peace of mind and financial security.