Everything You Need to Know About Timeshare Cancellations
- July 28, 2021
- 10:49 am
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Owning a timeshare may seem like a good idea at first, but some owners find themselves financially trapped in the long run. Many timeshare owners are looking for ways to get out of it. While a timeshare contract involves numerous legal documents, getting rid of them can be tricky.
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Timeshare Exit vs Cancellation
What is Timeshare Cancellation?
To cancel your timeshare means to get rid of it without any legal or financial penalty. Though this is possible, there are some critical points that you must keep in mind. Your cancellation must be performed within a specific period after buying, known as the Rescission Period in the industry. If you are feeling regret after buying, you must act quickly to cancel your timeshare. You can start this process by sending the resort company a cancellation letter.
We created a guide on how to write a cancellation letter. Click here to learn more.
What Does It Mean to Exit Your Contract?
Suppose you are planning to end your timeshare contract, but your agreement is beyond its rescission period. In that case, this is what the professionals refer to as exiting the contract.
There are multiple ways to exit your timeshare ownership, and we talk about that here. But to summarize, you can exit your contract yourself by selling it back to the resort company or to another person.
Where Can I Sell My Timeshare?
Some resorts have a buyback program that you can avail of. You may contact the resort company if you want to check if this is available for you.
Some resorts do not have a buyback policy. In this case, you may sell the timeshare directly to other people. This can be tricky because most states require a real estate license or something similar to sell timeshares.
You can sell the timeshare to people you know who may be interested in it. You may also consider selling it in the timeshare marketplaces. You could check out the going rate of timeshares on eBay right now to check how much you can get out of your property.
Why Do People Want to Cancel their Timeshare?
Regret is one of the most common reasons why timeshare buyers decide to cancel their contract. Many choose to opt-out when they realize how heavy a financial burden owning a timeshare can be.
Some timeshare owners don’t have plans of leaving their contracts, and they are comfortable with the monthly fees that come with it. Some actually have plans to keep using their vacation property until their retirement years. However, times have changed. Many people can no longer easily access their timeshare properties because of travel restrictions and other factors related to the pandemic.
It’s also possible that your financial standing has changed over the years. The cost of maintaining a timeshare may have become too much of a burden. The rising maintenance fees may no longer be at a comfortable level. Regardless of your reason, you should be free to exit this financial burden if you choose.
Many timeshare owners today obtained their vacation property when it was handed down to them from their parents. Suppose you inherited your timeshare, but you do not want the added financial burden. In that case, there are legal ways on how you can cancel your contract.
What's Making it Difficult to End the Contract?
Your contract is a legally binding document. It states your financial obligations to the resort company for the upkeep of the property. Even if you no longer want to use your timeshare property, you may still need to pay these obligations.
In addition, many timeshare contracts include a perpetuity clause. This is the part of the contract that states that the family will continue paying the stated financial obligations after the owner’s death. To know if your timeshare has one, read your agreement entirely.
Exiting your contract is much easier if the resort developer allows you to do so. Because the agreement is legally binding, you need the developers’ consent to properly end your financial commitments to the property.
While some resort developers will make the process easy, some will use every trick in the book to prevent you from exiting your contract. If the developers aren’t offering acceptable exit options, you may need to be represented just to exit your contract.
Is Exiting a Timeshare Tough?
Exiting a timeshare can be challenging if you cannot sell it. Some people find success in leaving their timeshares by communicating directly with the resort. However, if the resort provides no options for leaving your timeshare, the next best step is to use a legal team to help you exit.
This is where a timeshare exit company like the Forza Consumer Group comes in. You can learn more about how teams like these work here. To summarize, the team will scrutinize your contract to create a plan to help you exit your timeshare.
If you agree with the strategy they offer, they can then start to implement it. The team will communicate to the timeshare resort on your behalf to help you exit.
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