How to Get Out of a Timeshare If You Changed Your Mind
The presentation sounded good. A lifetime of annual vacations at a beautiful resort. The ability to swap weeks and even resorts. Payment terms that you can afford. If you're thinking "timeshare," you're right. Marketed as "vacation ownership," timeshares allow vacationers to purchase a lifetime's worth of yearly resort-vacation "intervals." Unfortunately, the deal that sounds very appealing to buyers who've just finished a tour of the resort and a high-pressure sales presentation may feel less right once the excitement has worn off. Although timeshare purchase agreements are binding contracts, there are ways to get out of your timeshare if you change your mind.
- Difficulty:
- Moderate
Instructions
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Cancel before the rescission period expires. State laws vary, but most allow buyers a certain period of time to cancel their contracts without risking their deposits. LegalMatch.com recommends consulting your sales agreement for the rescission deadline. If it hasn't passed, follow the instructions for canceling the contract and requesting your deposit money.
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Consult an attorney who specializes in challenging timeshare contracts if your rescission period has passed. Prepare to submit a copy of your contract and undergo an in-depth interview about the information that you were given during the timeshare presentation and in your discussion with the timeshare salesperson. Timeshare Mortgage Relief, a law practice specializing in timeshare contract cancellation, notes that, if the attorney suspects that you are the victim of fraud, misrepresentation or default on the part of the timeshare seller, you may take legal action to get your contract canceled.
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Sell the timeshare. Contact the developer to ask if it assists members in selling their intervals. If it doesn't, browse timeshare resellers on the Internet, such as BuyATimeshare.com (see the Resources section). Sell it yourself by listing it on a timeshare for-sale-by-owner site and in local newspaper and Internet classifieds. Price it as low as possible. According to CNN Money in 2010, most timeshare resales are worth no more than 25 percent of their original price.
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Seek an "exit solution." Contact a company that participates in third-party transfers and arrange to hand over ownership. Bankrate.com notes that exit-solution companies don't pay for timeshares. They just take possession. However, the transfer of ownership usually puts an immediate end to payments for maintenance and other fees.
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Tips & Warnings
If you list your timeshare with a company that brokers resales, read your listing agreement carefully. Look for a company that charges a fee only after your timeshare has been sold.
You're responsible for paying your loan and fees for as long as you own the timeshare. Consult an attorney before you stop payments, while you have fees or a loan balance due.
