Struggling with your timeshare? Here’s how to exit your contract

A timeshare is a collective vacation real estate model. It’s a popular choice for family vacations – but what happens when you want to cancel your contract?

Let’s take a look at how to get out of a timeshare contract, including everything you need to know about rescission periods, timeshare exit companies, and selling your timeshare.

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What is a timeshare?

A timeshare is a specific type of real estate investment. Multiple buyers own or lease units of the same property, with popular timeshare opportunities at vacation resorts and campgrounds.

You’ll typically get a designated week or set of weeks to use your timeshare. If you and your family vacation in the same place each year, you might invest in a timeshare to save on hotel bills, for example.

Timeshares are a good way to own a vacation home without the responsibility of buying a second home – and you can often access resort amenities as part of your contract.

However, a timeshare is a lifetime commitment that many people regret. Each contract works differently, but you’ll usually pay a lump sum upfront, as well as ongoing annual maintenance fees.¹

How can you get out of a timeshare?

Timeshares can become an unwanted annual expense for many families, especially as your children get older or you get bored of visiting the same place.

You might not be able to afford your timeshare anymore. Annual maintenance fees can cost around 1000 USD per year – and this may go up with inflation.¹

If you want to get out of your timeshare, don’t worry! You have options. Let’s take a look at a few ways to get out of your contract.

1. Using the rescission period

One of the most common ways to get out of your timeshare is by using your rescission period. Let’s take a closer look.

What is a rescission period?

During a rescission or “cooling off” period, you can leave your contract without ongoing legal or financial obligations.

A rescission period is typically 3 to 15 days after you’ve signed your contract, but it may differ depending on state law.

For example, the Alabama timeshare rescission period is 5 working days, whereas you may get a 7-day “cooling off” period in Louisiana.²

How can you use the rescission period?

You’ll need to act fast to make use of your rescission period. Consult your contract carefully to understand your rights and obligations.

You may need to write a cancellation letter and send it to the seller.

This should include:
Your name, address, and contact information The name of the timeshare company and a description of your purchase The date you purchased the timeshare A clear statement that you want to cancel your timeshare contract

Make sure to date and sign your letter. Depending on state law, you may also need to include some additional pieces of information.³

2. Selling your timeshare

If you want to exit your timeshare, you may be able to sell your property to another party. However, this will depend on your contract.

If you have a shared deeded contract, you’ll typically own your vacation unit, whereas a shared lease or right-to-use contract doesn’t give you ownership rights.¹

Buyers are always looking for affordable timeshare opportunities in the US, so don’t be afraid to explore your options.

Using a real estate agency

If you own your timeshare, you can use a licensed real estate agency to sell your property unit. Many real estate agents specialize in timeshare sales, so they can help you navigate the market.

This is one of the best ways to sell your timeshare. You won’t typically pay upfront fees to sell your property – and you can get tailored advice and support.⁴

Trying online marketplaces

You can also sell your timeshare via an online marketplace like Craigslist®, eBay®, or Redweek®. Make sure to look for places with good, targeted traffic – and only use sites you trust.

There are a few things to consider, such as:
Choosing a reasonable price Using high-quality photos and descriptions to showcase your timeshare Paying any upfront or commission costs for real estate listing

If you can’t sell your timeshare, you can transfer ownership to someone else for free. You won’t get anything for your property unit, but you can get out of your annual maintenance fees.⁵

3. Contacting your timeshare company

You can also contact your timeshare company for more information about getting out of your contract.

Some companies may have exit programs to help you out, even if it’s just a temporary solution.

Deed-back programs

Simply put, a timeshare deed-back program lets you transfer ownership back to the resort company. This will terminate your ownership rights and you won’t have to pay any ongoing maintenance fees.

However, you won’t typically get any compensation for returning your property – and you may need to make sure all your payments are up-to-date.

Not all timeshare companies offer deed-back programs. Your company may have specific conditions about how to get out of your timeshare.⁶

Hardship programs

Many financial providers and timeshare companies also offer hardship programs for people who can’t keep up with their annual payments.

Contact your timeshare company and explain why you can’t pay your maintenance fees. The resort may be able to come up with a temporary solution – or you may be able to get out of your contract.⁷

For example, Wyndham Destinations® has a Certified Exit program for timeshare owners to discuss their options.⁸

4. Hiring a timeshare exit company

You can also hire a timeshare exit company to help you leave your contract. The company will guide you through the exit process – and reputable organizations may use lawyers to free you from your obligations.

However, many experts advise against using timeshare exit companies, as they can be unreliable and expensive. Let’s take a closer look.

What should you look for in an exit company?

If you want to use a timeshare exit company, there are a few things to look out for. Make sure to check the company’s rating with the Better Business Bureau® (BBB) and read customer Trustpilot® reviews.

It’s worth choosing a company that has been in business for at least 5 years. The BBB site can also help you understand how the company has dealt with complaints from previous customers.⁹

Some popular timeshare exit companies include the Newton Group® and Vacation Ownership Consultants®.¹⁰

How much does it cost?

The cost of your timeshare exit company can vary. It’s often considered an expensive and last-resort method, with costs ranging from 2000 USD to 15,000 USD.¹¹

Avoiding scams

It’s important to choose your timeshare exit company carefully. Unfortunately, there are lots of scammers out there.

Make sure to research your options and always get a second opinion. If the company asks for a big payment upfront, this may be a red flag.

Getting out of a timeshare: step-by-step

Let’s take a look at exactly how to exit a timeshare – your step-by-step guide.

Step 1. First things first, you’ll need to review your contract. This can help you better understand your situation, including your ongoing maintenance fees and ownership rights

Step 2. Check your rescission period. If this hasn’t passed, you may be able to cancel the timeshare without any legal or financial ramifications

Step 3. If you can’t cancel during the rescission period, explore how to cancel your timeshare contract another way. This might include selling your vacation home or contacting your timeshare company

Step 4. Speak to a lawyer for advice. Negotiating your timeshare contract can be a tricky process, so make sure to keep a record of any documents or communication

Step 5. You’ll need to monitor the progress of your timeshare cancellation. Regularly reach out to the resort company or check in with your buyer. This can help you deal with any issues as and when they pop up

Step 6. Confirm your timeshare cancellation. You’ll need to keep any documentation that confirms the transaction is complete. For example, you may need to formally transfer ownership¹²

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Tips for a smooth timeshare exit

Research your options Gather relevant documentation and keep detailed records Consult a lawyer Make the most of your rescission period Communicate with your timeshare company

Getting out of a timeshare can be a stressful process, but there are lots of opportunities to exit your contract. You can sell your timeshare unit or contact your resort for support and advice.

Make sure to consult professional help before taking steps to exit your timeshare contract – and always do your research to avoid scams.

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Sources:

1. Forbes
2. X Timeshares
3. Nolo
4. Fidelity Real Estate
5. US News
6. Sell a Timeshare
7. ACA Group
8. Wyndham Destinations
9. AARP
10. Well Kept Wallet
11. My Timeshare Exit Reviews
12. X Timeshares

Sources checked on 10.25.2024