Are you considering timeshare cancellation? Before making any decisions, it is crucial to understand what this process really means and the potential risks involved. Many timeshare exit or cancellation companies promise an easy way out of ownership, but may charge thousands upfront with no guarantees that their efforts will be successful. Some of these companies also offer advice that is harmful to owners, such as simply stopping payment or communication with the resort, which can lead to foreclosure, damage to credit, or even legal trouble. Fortunately, there is a safe and legitimate alternative to this: selling your timeshare on the resale market. By working with a reputable timeshare resale company, you can legally transfer your ownership to a buyer and no longer have to pay any maintenance fees. Continue reading to learn more about the dangers of timeshare cancellation and the safe alternative of selling your timeshare.
Timeshare Cancellation Companies
In your search to get out of your timeshare, you may have come across timeshare cancellation companies. Generally, these companies are made up of lawyers who will try to find a loophole to get you out of your contract. We don’t recommend going this route, as many cancellation companies charge large sums of money upfront, and have loopholes in their own contracts that stipulate they can keep your money even if they are unsuccessful.
Can You Cancel A Timeshare Contract?
Many existing owners looking to let go of their timeshare are hopeful in canceling their timeshare contracts. Similar to buying and owning a house, timeshares are legally binding. Many contracts in life can’t just be canceled, and we recommend considering a timeshare contract in the same way. When a company says they work in “timeshare cancellation” beware for that reason.
The BBB has a study on timeshare exit companies, going over their fraudulent tactics and owners who are victims. Timeshare cancellation companies are a common resale scam that harms thousands of owners.
If you bought your timeshare in the United States, there is a rescission period for most timeshares that lasts between 3-10 days (in Florida, it’s ten days). This period allows the new timeshare owner to rescind their purchase and cancel the timeshare. If you’re already past that period, you will have to look into alternative routes of exiting. One example is selling with a legitimate timeshare resale company.
It’s important to review your contract carefully—many states require timeshare companies to include a “cool-down period” or rescission window, which typically ranges from three to 15 days, depending on where you purchased. During this time, you can usually back out of the deal without paying a penalty or fee. Make sure to look for specific language about cancellation or rescission in your paperwork, and act quickly if you have second thoughts after buying.
What is a Timeshare Scam?
Unfortunately, timeshare scams come in many forms, including timeshare cancellation companies. Cancellation companies are most often associated with timeshare resale scams. The most common resale scams include out-of-the-blue buyers, calling and saying they’ve found someone to pay a large amount for your timeshare. Unfortunately, most timeshares don’t resell for as much as they were initially purchased for. You should be cautious of calls like this. Another common timeshare scam includes the promise of canceling your contract.
Timeshare cancellation companies are rarely successful in canceling owners’ contracts. Most of the time, the lawyers at those companies will charge you a large upfront fee and then send a letter to the resort to stop contacting you. Once this happens, most owners assume their timeshare is canceled, but in reality, it isn’t. Additionally, they often tell owners to stop paying timeshare maintenance fees.
You shouldn’t stop paying your maintenance fees until you are no longer the owner of your timeshare. If you stop paying them, it can hurt your credit. If you’re ready to exit your timeshare, we recommend calling your developer first. Some developers offer in-house exit solutions.
What Are the Risks and Consequences of Defaulting on Timeshare Payments?
If you’re at the point where none of the usual options work and you’re feeling stuck, you might wonder about simply walking away. It’s important to know that if you stop paying your timeshare loan or maintenance fees, you’ll be in default. This can trigger penalties, damage your credit score, lead to collection attempts, or even result in the foreclosure of the timeshare. In some cases, the lender might sue you to recover losses. Defaulting is never ideal, and while it’s not illegal, it’s a last resort that comes with serious financial consequences and will ultimately bring your timeshare ownership to a close.
Taking proactive steps—like working with your developer or a reputable resale company—can help you avoid these risks and find a smoother path to exit.
Warning Signs of Fraudulent Timeshare Exit Companies
When searching for a way out of your timeshare, it’s important to know how to spot red flags that could signal a scam. Unfortunately, many fraudulent timeshare exit companies prey on owners eager for a solution. Here’s what to watch out for:
- Large Upfront Fees: Be cautious of any company demanding big payments before doing any work. Legitimate services typically don’t ask for hefty fees without providing results.
- Vague or No Promises: If a company assures you a quick and easy exit with no clear explanation of their process—or says they have a “special relationship” with resorts—that’s a warning sign. Always ask for specific details.
- Lack of Transparency: Scam companies may dodge your questions about pricing, contract terms, or their success rate. Reputable businesses will be upfront and clear.
- Negative Reviews and Complaints: Before proceeding, look up the company’s name along with words like “scam” or “complaint” online. You can also search the Better Business Bureau to see if the company is accredited and to read customer feedback.
- Pressure Tactics: If you’re pushed to sign paperwork immediately or discouraged from consulting with someone you trust, take it as a red flag.
- No Written Agreements: Always get any offers or guarantees in writing. Read all documents carefully, paying close attention to the fine print.
If something feels off, trust your instincts and seek advice before proceeding. And if you suspect you’ve encountered a scam, consider reporting it to the Federal Trade Commission (FTC) to help protect others.
How to Protect Yourself From Third-Party Timeshare Exit Scams
When exploring third-party timeshare exit companies, due diligence is your best defense against scams—especially when offers sound too good to be true. Before signing anything, make sure you:
- Research Thoroughly: Search company names online alongside terms like “scam” or “complaint” to see what previous clients are saying. Platforms like the Better Business Bureau (BBB) are helpful for checking if companies are accredited, well-rated, and have a positive customer track record.
- Review Fee Structures: Transparency is key. Avoid companies that demand large upfront payments or rush you into signing without clear details about their process and success rates. Reputable services typically offer written agreements and clearly explain their fees.
- Read the Fine Print: Always insist on getting any and all promises in writing. Take time to review contracts closely, watch for vague language, and consider asking a trusted friend or legal advisor to help you interpret the details.
- Report Suspicious Activity: If you encounter questionable practices or suspect a scam, don’t hesitate to report it to the Federal Trade Commission (FTC) at ReportFraud.ftc.gov or similar consumer protection agencies. You may potentially help others avoid falling victim as well.
Being informed and cautious goes a long way in safeguarding both your wallet and your peace of mind.
Best Way to Sell a Timeshare
If you’re looking for the best way to sell a timeshare, it’s important to know what to look for. Is the company a member of the American Resort Development Association (ARDA)? Do they have an A+ rating with the BBB? It’s also helpful to read customer reviews and do research on any company to determine their reputation. That way, you can feel comfortable working with them. We also recommend working with a licensed real estate agency that specializes in timeshare resale, like ours.
How to Sell Your Timeshare
As the Recommended Resale Broker of Disney Vacation Club, we specialize in DVC resale in addition to all other major brands. If you have a legacy timeshare, we can help you too. Whether you’re looking to sell your Hyatt points or Wyndham timeshare, let us help.
Our process for how to sell your timeshare is simple. Contact one of our agents and they can help you list your timeshare for sale with no upfront fees. Once it’s listed, our agents will work on finding you the right buyer with our extensive marketing tactics. Once a buyer is found, you will be contacted with the offer. It is totally up to you how much you accept and you have the choice to decline or accept any offer.
If you do accept an offer, our agents will work on drawing up the contracts for sale. After this is complete, you may have to enter the ROFR process which is where the developer is given the chance to buy your timeshare based on the original terms under which you bought your timeshare. Finally, our agents can recommend a licensed title company to transfer the ownership and deed out of your name.
Understanding State Laws and Your Responsibilities
Before proceeding with a timeshare exit, it’s important to know that every state has its own set of laws and guidelines for ending a timeshare contract. You’ll need to look into the specific regulations in the state where your timeshare is located. Certain states may require you to submit paperwork or even pay necessary fees before an exit is finalized.
Keep in mind:
- Some states obligate owners to continue paying maintenance fees or other dues until the transfer or cancellation is officially reflected in the resort’s records.
- There may be notice requirements or timelines you must follow to avoid extra costs or legal troubles.
- It’s wise to consult the state’s attorney general website or consumer protection office for current rules and best practices.
Staying informed about your legal obligations can help prevent surprise fees and make the transition out of your timeshare as smooth as possible.
What Should You Do if You Are Unable to Sell Your Timeshare?
If selling your timeshare isn’t yielding any results, you might consider a different approach: giving it away. While you likely won’t recoup your initial investment this way, transferring ownership can relieve you of the responsibility for maintenance fees and other ongoing costs. Some owners have success by gifting their timeshare to friends, family, or even donating it to charitable organizations that accept timeshare properties.
Before moving forward, it’s important to check the transfer rules with your timeshare developer or HOA to ensure a smooth transition. Carefully review any potential recipient’s willingness to take on the obligations that come with the timeshare, and always complete the proper legal paperwork to officially transfer ownership.
How to Negotiate With Your Timeshare Company to Exit Your Contract
If you’ve missed the rescission period and are still hoping to exit your timeshare, reaching out directly to your timeshare company is a smart next step. Many developers actually have dedicated exit or “deed-back” programs specifically designed to help owners in your situation.
Start by contacting your timeshare company’s owner services or customer support team to explain your circumstances. It’s helpful to ask about their Certified Exit or hardship programs—some companies, like Wyndham Destinations, offer ways for owners to return the timeshare if it’s fully paid off, or to apply for special consideration due to financial or personal difficulties.
Here are some steps you can take:
- Inquire about Deed-Back Programs: These programs allow you to return your timeshare to the company if you have paid off your loan and all dues are up to date.
- Request Hardship Exceptions: If you’re experiencing financial struggles, many companies review hardship requests, which may allow you to surrender your ownership under certain conditions.
- Keep Documentation Handy: Have records of your account status, communications, and proof of hardship, if applicable. This can speed up the process.
Remember, policies vary between companies, but it never hurts to ask—some owners find relief simply by opening the conversation.
Sell Your Timeshare With No Upfront Fees
We believe selling your timeshare shouldn’t cost you a fortune, and we don’t charge upfront fees to help. At Fidelity Real Estate, we have Licensed Agents with over 20 years of experience in timeshare resales. There are no upfront fees, and we work with trustworthy title companies for an efficient closing process. Not to mention, our partners in the industry allow us to offer solutions you can’t find anywhere else on the resale market. That way you can avoid working with timeshare cancellation companies.
