While many people like traveling, the number of people who enjoy the process of planning travel is much lower. Traveling requires a lot of logistics.
You must figure out where to go, where to stay, when to go, and how to get there. A reluctance to deal with all of those details helps explain why around 9.9 million US households have a timeshare.
Of course, many who get involved with a timeshare soon look for a way to do one thing: cancel a timeshare contract. If that’s you in a nutshell, keep reading for the key ways you can get out of your timeshare purchase.
What Is a Timeshare?
In essence, a timeshare deal gives you the right to a specific property in a specific location for a specific period of time. In most cases, these properties are in desirable locations, such as a tropical location or near a ski resort.
The typical timeshare gives you around two weeks per year at the property. The exact dates available will vary by property and company, although there is normally some level of flexibility. Other people who use the same property can also trade their time with each other, at least in theory.
Why Leave a Timeshare Contract?
While a timeshare sounds great on the surface, they often prove less than stellar in practice. For example, many timeshare companies pitch their timeshare properties as investments.
A timeshare isn’t really an investment, because they almost never appreciate in value. In most cases, the property loses value over time because of basic wear-and-tear from so many people coming and going over time.
The average initial cost of a timeshare is around $24,000. While not an insurmountable fee, it’s also not a number most people can simply brush off.
Beyond that initial fee, you’re also on the hook for maintenance costs for the property. Those costs often rise over time, which diminishes the value for timeshare owners.
Many people discover that they never use their timeshare period. It’s a bit like a gym membership that way. It soaks up money, but you never get any real value from it.
It can also prove very difficult for your to switch periods. After all, you can’t plan for emergencies or even big projects at work coming up around those two weeks.
With those essential problems covered, let’s look at ways you can get out of a timeshare contract.
Cooling-Off Period
The best and fastest way you can get out of a timeshare purchase is if you can take advantage of the cooling-off period or rescission period. In essence, this is a window of opportunity the FTC and state governments give you to back out of major financial decisions, like a real estate purchase.
The exact length of time you have will vary. For example, the FTC sets a 3-day window of time. State governments will often provide a longer period of time.
You’ll need to check your state regulations to find out exactly how long a cooling-off period they provide and for what kinds of purchases. If you do change your mind during the cooling-off period, you can simply cancel the deal and walk away.
Timeshare Cancellation Letter
If you change your mind during the rescission period, you must send the company a timeshare cancellation letter. Make this a real, physical letter that you send via certified mail. It’s too easy for a company to claim that they never got an email.
Get right to the point in the letter. You need to say something along the lines of: “I’m writing to make a timeshare cancellation request.” You should also include pertinent information, such as:
- Purchase date
- Membership ID
- Name of the timeshare
- Contract holder
Finally, settle in for a lengthy process. The timeshare company will not let you go easily.
Timeshare Transfer
Another option you can pursue is transferring your timeshare. Don’t get too excited by the idea. There are always a lot of timeshares on the market at any given time.
After all, you won’t be the only person looking for a way to get out of a bad timeshare contract. Still, it is possible for you to sell the timeshare.
The absolute best-case scenario, at least for you, is that you know someone who wants to buy your timeshare. While you shouldn’t necessarily discourage someone from buying your timeshare, you should tell them upfront why you’re selling.
If you don’t tell them before they buy it, it can become a bone of contention between you and them down the road. The truth is that even if you do tell them, they may still hold it against you if they have a bad experience.
You can also try selling it through a timeshare seller service, although your results may vary. Your ability to sell the timeshare will largely depend on the timeshare location and period of time available at it. If those don’t line up exactly with what someone wants, you probably won’t see much interest.
Timeshare Cancellation
Assuming you didn’t get clear during the rescission period and you can’t easily unload the property onto a willing buyer, you’ll probably need the assistance of a timeshare cancellation company.
In principle, these companies simply resell the timeshare. In practice, they call the timeshare company to account for their often predatory sales tactics. While it won’t necessarily get you out of the timeshare any faster, it can spare you some mental anguish along the way.
You will, however, owe the company either a fixed fee or a percentage of the sale price of the timeshare.
Cancel a Timeshare Contract
A sad majority of timeshare buyers end up wanting some way to do one thing: cancel a timeshare contract. The good news is that there are some ways to get out of such a contract.
You can cancel the deal during the rescission period. You can sell the property to a willing buyer. You can also employ the services of a timeshare cancellation company.
Looking for more real estate tips? Check out our Business category for more posts.
