How to Get Out of a Timeshare

Timeshares can seem like a good idea at first, but many owners eventually find them to be a financial burden or simply not worth the hassle. If you’re looking to get out of a timeshare, here are some steps to help you navigate the process.

Getting out of a timeshare can be challenging, but it’s not impossible. By understanding your contract, exploring exit programs, seeking legal advice, and considering resale options, you can find a solution that works for you. Remember to exercise caution and do thorough research to avoid scams and ensure a smooth exit process.

There are reputable timeshare companies out there, but there are – regrettably – also plenty of dishonest ones that employ shady sales tactics and then make it very difficult for contract holders to cancel their contracts.

time shares

1. Review Your Contract

  • Understand the Terms: Carefully read your timeshare contract to understand the cancellation policies, obligations, and any specific clauses related to exiting the timeshare.
  • Rescission Period: If you recently purchased the timeshare, check if you are still within any applicable rescission period (cooling-off period), which allows you to cancel the contract without penalty or for a small fee.

High-pressure, obfuscating and overwhelming sales tacticts can make people enter into contracts without thinking it through well beforehand. In the United States, the U.S. Federal Trade Commission is providing a degree of protection for the consumer through their mandatory three day “cooling off period” under which the contract signer is permitted to cancel certain contracts without penalty. Several other countries around the world have similar rules – and sometimes the cooling off period is even longer than in the U.S.

It should also be noted that nearly all U.S. states have specific regulation in place for timeshares, including provisions regarding the cancellation of time share contracts. One notable example is Florida, home to many timeshares, where a new contract can be cancelled within 10 days. Note: If you are an out-of-state purchaser, you need to find out if you are covered by the regulation of your home state or by that of the timeshare state.

Some timeshare companies will encourage you to sign a “cancellation waiver”, typically in exchange for a discount or some special perk. In essence, they want to you sign away or diminish your legal cancellation rights. In many parts of the world, including Mexico and the United States, the timeshare company can not legally enforce such as waiver.

2. Contact the Timeshare Company

  • Request Exit Options: Contact the timeshare company or resort to inquire about their exit programs. Some companies offer buy-back programs or deed-back options that allow you to surrender the timeshare back to the company.
  • Negotiate: Be prepared to negotiate. Explain your situation clearly and ask if there are any special programs or discounts available for exiting.

3. Seek Legal Assistance

  • Hire a Timeshare Attorney: If the timeshare company is uncooperative or the contract terms are complex, consider hiring a timeshare attorney. They can help you understand your rights and may find legal grounds to cancel the contract.
  • Class Action Lawsuits: Research if there are any ongoing class action lawsuits against the timeshare company. Joining a lawsuit can sometimes provide a way to exit your contract.

Tips!

  • Does the timeshare fall under the perview of the European Union? In 1994, the EC adopted “The European Directive 94/47/EC of the European Parliament and Council on the protection of purchasers in respect of certain aspects of contracts relating to the purchase of the right to use immovable properties on a timeshare basis”. This later resulted in the European Directive 2008/122/EC being adopted in January 2009.
  • Is the timeshare subject to Mexican law? Then you should take a look at “NOM-029-SCFI-2010, Commercial Practices and Information Requirements for the Rendering of Timeshare Service”. Among other things, this regulation includes provisions regarding the cancellation of timeshare contracts.

4. Use a Timeshare Exit Company

  • Reputable Firms: If you decide to use a timeshare exit company, choose one with a good reputation. Look for companies that offer a money-back guarantee and have a good reputation among actual users.
  • Beware of Scams: Regretably, there are a lot of scammers that profit from people´s need to get rid of time shares. Read up on common scams to learn how to spot the red flags. Be especially cautious of upfront fees and high-pressure sales tactics. Research thoroughly before committing to any exit service.

5. Sell Your Timeshare

  • Timeshare Resale Market: Listing your timeshare for sale on reputable resale platforms like RedWeek, Timeshare Users Group (TUG), or eBay can be an option. Be realistic about the price, as the resale market is often flooded with timeshares.
  • Hire a Broker: Consider hiring a licensed real estate broker who specializes in timeshare resales. They can help you market the property and handle the paperwork. Please note that many regular real estate brokers will not handle timeshares. Some will handle timeshares that are actually partial ownership, but will not handle leases and “right to use” – and many timeshares fall into these latter categories.

7. Transfer Ownership

  • Gift or Donate the Time Share: You can transfer ownership to a willing person or, in some cases, organisation. Note: Some charities accept timeshare donations, though it is advisable to research the tax implications first.
  • Third-Party Transfer Services: Use a third-party transfer service to facilitate the ownership change. Ensure they are reputable and have experience with timeshare transfers.

8. Stop Paying Maintenance Fees (Last Resort)

  • Consequences: Ceasing to pay maintenance fees should be a last resort. This can lead to collection actions, credit score damage, and serious legal consequences. It is advisable to seek legal council first.
  • Communication: Before stopping payments, communicate with the timeshare company to explore other possible exit options.

Alternative option: Rent Out Your Timeshare

If selling is not an immediate option, consider renting out your timeshare to cover maintenance fees and other costs. Websites like Airbnb, VRBO, and RedWeek can help you find renters.