How to Get Out of Time Shares

Some time shares are like flushing money.

Of the approximately 3 million Americans who buy a time share, 85 percent are satisfied with the purchase, according to a survey by the American Resort Development Association in Washington, D.C. But there are plenty of horror stories from people who got stuck in a time-share mortgage. Don't get into a financial nightmare by letting a persistent salesperson talk you into a purchase you neither need nor can afford.

Instructions

1. Read your time share mortgage contract, which should be written much like any other real estate contract. All mortgage contracts contain a rescission clause that explains the owner's right to revoke, rescind or cancel the contract.

2. Look for the time deadline in the contract. This is the number of days buyers have to change their minds and cancel the sale. The deadline includes detailed instructions on what must be sent to the developer or resort that sold the time share. You must follow the instructions exactly to make the cancellation legally binding.

3. Check the state laws where you bought the time share if there is no rescission notice in your contract. Under the U.S. Truth in Lending Act (also called the Consumer Credit Protection Act), you have a minimum of three business days to change your mind. Additionally, specific laws cover time shares in most states, so it's important to review the laws of each state.

4. Check the wording in the contract. Some time restrictions are based on business days; others might be based on calendar days, which include weekends. Some states start the time-limit clock on the day you sign the contract.

5. Send all cancellation paperwork, properly signed and executed, via certified mail to the address stipulated in the contract. Pay extra postal fees for a return signature and receipt so you have a record that the paperwork was received. Follow up with a phone call to the resort within three or four days to verify the status of your cancellation.

6. Contact the Better Business Bureau and the attorney general's office in the state where you purchased the timeshare if you think the developer or resort company is not abiding by your contract.

Tips & Warnings

• Seek competent legal advice before executing any contract. Avoid falling for high-pressure sales tactics.