Timeshare ownership is technically like owning a deeded piece of real estate. If someone tells you that you can “cancel” your timeshare contract, this is not the case and it can hurt your credit standing!
Before taking the plunge with a timeshare cancellation or exit company, remember that there is a very slim chance that you are still in the timeshare rescission period. With every ARDA member developer, and in most states, your timeshare contract will write out a period of time after purchase that the buyer may rescind their purchase.
Owning a timeshare is like owning a real, deeded piece of real estate. Can you cancel your mortgage on your house? Unfortunately, this is the same for vacation ownership. The rescission period in your contract is normally not very long, maybe five to fifteen days depending on the state your resort is located in. If you are experiencing cold feet immediately after buying your timeshare, you may still be in the rescission period. However, if your ownership was purchased months or years ago, this rescission period has passed. The best way to sell your timeshare after this period is by consulting your developer, or a credible resale company.
If an exit or cancellation attorney tells you that you can cancel your timeshare contract, what they really mean is that you can default on your ownership. Even with a “risk-free” promise, you are sacrificing your credit standing and will likely never see a refund. In the fine print of a cancellation company’s contract, you will find that an owner that defaults on their timeshare is considered a win or successful exit.
The truth of the matter is, you cannot cancel on your timeshare contract unless you are still within the legal rescission period. Once this has passed, your best option is to consult with your developer for other solutions, or to sell it.
A reputable, trustworthy timeshare resale company or agent will never call you unsolicited. This is actually against the law, and goes against the ARDA Members Code of Ethics. If someone calls you out of the blue with a willing buyer, this is likely a scam. If they promise to buy your timeshare for all that you paid for and more, it is highly unlikely it’s a legitimate offer.
Timeshare rarely appreciates in value. They are not a financial investment, but rather a product that helps families invest in their vacations for life. The best way to sell a timeshare is to set realistic expectations.
You should never have to pay exorbitant up-front fees to sell your ownership. Some advertising companies may request a small up-front fee for marketing, but a legitimate timeshare resale company will not ask for you to pay thousands of dollars to close.
In the case of an out-of-the-blue buyer, you will most likely be asked to wire a large sum of money for “closing” or “transfer” costs. You should never have to pay to get out of your timeshare. This also goes for cancellation attorneys or exit companies that ask for exorbitant up-front fees for their services.
There are some cases of a timeshare resale company that asks for advertising fees or listing fees. These are usually nominal, and these companies don’t promise to cancel your ownership. Rather, they advertise your ownership for you to thousands of possible buyers. The best way to sell a timeshare without upfront fees is through a Licensed Real Estate Brokerage.
Whether you plan on getting out of your timeshare or not, you should never stop paying your annual dues or maintenance fees. These fees are legally binding in your contract. If a timeshare exit team or lawyer advises you to stop paying your dues, take warning. This will result in a drastic decrease in your credit score, and you will likely default on your ownership. A foreclosure will stay on your credit report and follow you forever. While you may no longer use your ownership, these dues are required to keep paying.
If you are struggling to pay your timeshare maintenance fees, consult with your developer. They may have options. You can opt to rent your timeshare out to help cover these dues or sell your ownership entirely in order to stop paying them.
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