Owning a timeshare sounds like a great option to many people. It allows them to have the home of their dreams in a place they would love to live, but can’t necessarily afford.
Sure there’s a few things you can’t do at a timeshare like you would with a regular home, such as visit anytime you want, but why let that stop you?
In actuality, purchasing timeshares is a complicated process not to be taken lightly. Instead of jumping in straight away to get a timeshare, it’s worth talking with an attorney first, and letting them help you in the process should you decide to go ahead.
Learn everything you need to know about preparing for a timeshare, and why an attorney is a worthwhile investment.
1. Laws Around Timeshares Get Complicated Quickly
If you live in one state and own a home there, you’re likely aware of the rules and regulations for homeownership. Ths makes owning a timeshare sound simple enough to do since you already know how this goes, right?
Buying a timeshare usually involves purchasing a home in a different state, since most people want to vacation in a different area. While there’s nothing wrong with this, timeshares come with their own set of rules.
Add to this the fact that timeshares come with their own special rules when purchasing, using and owning. Knowing this information, you won’t want to go into buying a timeshare without a little help.
Having a lawyer is important because there’s more than one type of timeshare available. Make life easier for yourself and your family, and pick a lawyer experienced in timeshare matters.
That way even if you do decide to purchase, you’ll know what you’re in for.
2. Unlike Buying a Home, There’s More Than One Party When Purchasing a Timeshare
When you buy a timeshare, it’s a little tricky in that you don’t own it the same way you would a home you privately buy.
Unlike your own private house, a timeshare is something that usually gets shared with many people, as the name suggests.
One option is fixed or floating time. This means that your timeshare is only available to you during a specific week or short time period out of the year.
There’s also fractional ownership, which allows you to own the timeshare for up to 6 months out of the year.
It’s important to understand that although the timeshare is still partially yours, there are limitations when you can visit it and make use of it. For many people, this sounds acceptable when they first buy the timeshare, and then they quickly realize how frustrating it is.
A timeshare cancellation attorney can help you change your mind and get out of a timeshare that you find isn’t working for you. Make sure you contact and get the help fo an experienced lawyer, so you don’t have to muddle through getting out of one by yourself.
3. The Timeshare Rescission Period is a Short One
If you choose to rescind on a timeshare deal, keep in mind that the period to do so is short. This varies by state and much depends on the state you purchase your timeshare in.
Some states go by the fifth calendar day of when a person signed a contract for their timeshare. This includes popular states that timeshare purchases are common in, such as California and Colorado.
If you’ve made the choice to purchase a timeshare and you’re having buyer’s remorse, make sure to talk with an attorney. Depending on where you are in the contract process with your timeshare, it’s still possible to get out of the contract.
Don’t feel trapped into a purchase you aren’t confident on. Check your contract and call a lawyer to see what your options are when dealing with a timeshare.
4. Canceling a Timeshare is Tricky and Sometimes Time-Consuming
Even if you’re well within the time frame to cancel your timeshare, it’s still a tricky process.
Many timeshares don’t want to lose buyers and try to do everything they can to stop them from canceling or convince them not to rescind their contract.
By bringing a lawyer into the situation, you can feel confident in getting out of your purchase.
Having a lawyer with you shows the company or individual you purchased the timeshare from that you’re aware of your rights and how you choose to exercise them.
A lawyer can help you learn about what steps to take in order to properly get out of the timeshare. Normally a cancellation letter must get sent in order to start the process.
The lawyer can assist you with drafting this up, and ensure you’re following the correct steps to get out of the contract. You won’t need to worry about having a timeshare company convince you otherwise when you have a lawyer on your side.
5. Having a Lawyer Protects You from Debt Collection When Canceling Your Timeshare
If you’re the victim of timeshare fraud, it’s essential that you have a lawyer help you through the process. Because you’ve signed a contract, if you haven’t properly rescinded, you could get contacted by debt collectors.
As long as you’ve retained an attorney to help you get out of your timeshare, your attorney will work with you to keep the debt collectors back. This is a legal obligation they must adhere to once they’re aware a lawyer is on the case.
Don’t try to go through a difficult process like this alone. Let an experienced lawyer help you through it.
Purchasing timeshares sound good at first, but it’s not always the right decision for many people. If you find yourself trying to get out of a purchase you made, have a lawyer help you through the process.
If you’re looking for help with buying a home, check out our blog on why you need a closing attorney.
Don’t go into the process alone. Make sure you have someone who can help you through every step.
In 2015, timeshare sales in the U.S. grew to more than 8.6 billion dollars. These timeshares are perfect for those wanting to own a piece of a resort. It’s the opportunity of a lifetime to get that dream vacation each year.
Additionally, timeshares are often larger than traditional accommodation. They have two bedrooms or more and often come with a kitchen and other amenities not found in hotels.
But, be careful. Timeshare deals aren’t always what they seem. While some will offer you a dream holiday each year, others can cost a lot of money in the long run.
Here are some tips to bear in mind when buying a timeshare:
Timeshares: the Perfect Vacation Destinations
Timeshares are vacation properties. They’re an opportunity for you to buy a share of a property and use it for a specific amount of time each year. They’re great for family vacations.
What we’re getting at is that timeshare deals aren’t financial investments. They’re not the type of purchase that will make you money.
Making an investment in a timeshare will enhance your quality of life not make you millions. Always think of your timeshare as the perfect vacation destination rather than a gold mine.
Considerations to Make When Choosing Between Timeshare Deals
Different timeshares come with different schedules. Both the lender and the dates vary depending on the timeshare deal you buy.
A fixed schedule timeshare will give you access to your property on the same dates each year.
Floating schedule timeshares offer you a specific number of days in your property each year.
The benefit of these is that you can choose when you use up that time. You’ll have more flexibility to plan vacations around work and your family.
Combinable time timeshare deals allow you to divert your holiday from one year to the next. Instead of going on one short holiday each year, you can skip a year and accumulate time for the next.
Timeshare ownerships entitle you to one week in your holiday home each year. These types of timeshares have 52 individual owners, thus giving one week access to each owner.
Fractional ownerships are perfect for those of you who’d like more than a week’s access to your holiday home.
Depending on how much you choose to invest, your property could be available for anywhere between 2 and 12 weeks every year.
Rentable timeshare deals are best if you’d like to make a little money back. Instead of staying in your unit, you can rent it.
Remember, you can only rent the timeslots that you own. With this in mind, you shouldn’t see your new unit as a buy to rent opportunity.
You can also find timeshare deals where you can lend your unit to your family or friends.
The most limiting timeshares are those that are owner only. Your friends and family will not benefit from your investment.
Know This Before You Buy…
Negotiate the Price
As with any real-estate transaction, the price of a timeshare is negotiable. Don’t settle for the first offer you get.
While you may save a lot of money on hotels over time, you’ll also find that your location is limiting. I.e. You’ll go to the same destination each year.
To make the offer more tempting, timeshare companies will offer you gifts. This leads us to our next point:
Buy From an Existing Owner
Timeshare companies offer gifts because they know that you can buy your unit for less money from an existing owner.
While they’ll offer you various incentives, these will not equate to the amount you save by going to an existing owner.
The Best Deals Offer a Deed to a Property
The best timeshare deals are those that allow you to rent your property if you choose not to use your allocated time. These properties give you a deed to a property. They’re known as a “timeshare estate”.
This deed allows you to rent, sell, or leave your timeshare to your children or family when you pass away.
The only catch to these deals is that you have to pay your maintenance fees each year. These are the same as property taxes. If you don’t make them, the company with which you have a deal can foreclose.
Check Out the Right of Rescission on Each Deal
The “right of rescission” is a generous opt-out clause. It is to protect potential buyers from abuse on timeshare sales.
Timeshare deals with this clause allow you to cancel your contract up to a week before signing on the dotted line. Plus, it doesn’t matter what the reason is.
To avoid this clause, some timeshare companies ask you to sign the contract documents in a different state to the one you are buying in. This is to enter you into a contract in a state where you will not have the same buyer protection.
To make sure everything is above board with your contract, find a lawyer in your area that specializes in timeshare agreements.
Beware of Timeshare Scams
Because of the popularity of timeshares, there are now thousands of scammers out there looking to make a quick buck.
If you receive cold calls offering to buy your timeshare and you haven’t advertised it, hang up straight away.
These companies collect thousands of dollars from you and then never complete the sale.
My Timeshare Attorney says there are other common promises timeshare scammers make:
- You’ll receive priority over others when booking a vacation
- The interest on your timeshare will increase, making you money in the long run
- You can rent your timeshare to make bucket loads of money
- You can sell your timeshare for a premium
Please note that while you can rent your timeshare, you should not buy it with the goal of making your money back. You may make a little income but it isn’t a sound long-term investment.
Hire a Lawyer to Make Your Deal
If you are buying a timeshare, it’s important you get the right legal advice.
The right lawyer will keep you safe from scams. Not only this, you’ll know everything you need to know to get the best deal possible.
At Halt, we link people with attorneys that can help them find the best timeshare deals.
To find out more about our services, contact us today!
Many people who enter into timeshare agreements soon come to regret their decision, whether it’s because of the escalating maintenance fees or just because they don’t want to keep going to the same location every year.
However, getting out of a timeshare contract can be notoriously difficult, with many timeshare companies claiming that the agreement is ‘in perpetuity’, which essentially means ‘for life’.
However, thankfully there are ways to legally get out of a timeshare contract, which we’re going to cover in this blog post.
Cooling Off Period
If you only just signed for the timeshare, then you may be able to cancel during what is known as the ‘cooling off period’.
During this period of 14 days from the day you signed the contract, you’re entitled to have the contract fully terminated and have any money that you paid returned to you.
To trigger this, you need to write to the timeshare company outlining your intention to cancel the timeshare contract.
Outside the Cooling Off Period
If you’re now outside of this two-week period, then the timeshare company may have you believe that you’re stuck with the property, but there is still a legal way to have the contract cancelled, which is if you were mis-sold the timeshare in the first place. This is extremely common, as the timeshare industry is known for its dubious sales techniques, so chances are that you may have a case.
For example, if the timeshare is not exactly as it was presented to you, either in the contract or in a sales presentation, then the seller has mis-sold it to you, making the contract void in the eyes of the law.
If you do take this approach, it’s not uncommon for the timeshare companies to threaten legal action, which is understandably scary.
However, in the majority of cases, they don’t actually have much of a leg to stand on and such threats aren’t followed up.
Despite this, it’s crucial that you seek out professional guidance before going down this route because timeshare law is very complex.
The Timeshare Consumer Association are renowned industry experts who have helped many people in these situations and it’s recommended that you get in touch with them if you require assistance in exiting a timeshare.
Getting Money Back
Of course, once the contract is cancelled, the next most important thing is trying to get your money back.
This will be a case of going to your bank/card company who should refund you as part of the chargeback obligation which you can read more about at Which? Consumer Rights.
Some banks will be more helpful than others, but they do have an obligation to reverse the payment, so if they don’t your next step should be to speak to the Financial Ombudsman Service.
This may require a bit of persistence, but you should be able to reclaim your money if you were mis-sold the timeshare!
There isn’t always a legal route out of your timeshare, but the majority of the time, there will be a solution, it just takes a little time!
The best thing to do is to speak to the experts, as trying to take on the timeshare companies yourself is likely to be a recipe for disaster.
Owning a timeshare is a popular option for many global travelers. In fact, roughly 9 million people worldwide own a timeshare.
These timeshares allow vacationers to visit over 6,000 resorts in 95 different countries across the globe. The timeshare industry itself does $10 billion in sales every year.
However, for many different reasons, some people seek to cancel or terminate a timeshare agreement. This can be difficult because timeshare agreements are legally binding documents.
Due to many legal landmines, you may require a specialist to help you end a timeshare agreement. Read on to learn how to get out of a timeshare agreement.
Act Fast to Get Out of a Timeshare
The most effective way to cancel a timeshare agreement is to act immediately. In many cases, consumers are tricked into entering the agreement. The sales representative is aggressive and pitches the deal as too good to pass up.
Nonetheless, you return home to read the fine print and realize it costs too much or does not live up to expectations. At this early stage, there is still time to back out without losing any money.
For example, California requires a 7-day rescission period in which the timeshare can be nullified. This 7-day period starts when the contract is signed or the public record is received, depending on the terms and conditions. North Carolina, on the other hand, only requires a 5-day rescission period.
If you do rescind the timeshare agreement, make sure to save any evidence in case the company does not comply. This evidence may include a time stamped copy of the certified mail record.
Sell the Timeshare
There is a resale market for timeshare agreements. If you elect to go this route, however, prepare yourself to take a loss.
Timeshares sold on the resale market typically net less than 50% of the purchase price. For sellers, this means losing a large portion of the initial down payment.
However, this is still an attractive option for people looking to trim their monthly budget and cut long-term expenses.
Other Options for How to Get out of a Timeshare Agreement
Terminating a timeshare agreement grows increasingly difficult after the rescission period ends. If you cannot resell the timeshare, termination options may be limited.
First, check the terms and conditions of the timeshare agreement to see if termination is possible. Some timeshare companies or owners may allow for a termination after a certain period of time elapses.
Most likely, this termination will be in the form of a deed in lieu. This effectively gives the timeshare back to the owner, while releasing you from future obligations.
Lastly, you may elect to hire a legal specialist. Preferably, you should seek a lawyer with experience in timeshare law and a great reputation.
Wrapping It Up
Cancelling or terminating a timeshare agreement can be tricky if the rescission period has expired. There are a few options available to consumers including resale or negotiating a deed in lieu.
If you are interested in hiring a legal specialist or want more information on how to get out of a timeshare, please contact us for assistance.