How to Legally Get Out of a Timeshare
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 a legally binding document.
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.