Breaking Free: How to Legally Cancel Your Timeshare
Canceling a timeshare legally can seem daunting, but here’s a quick overview to guide you in the right direction:
- Understand Rescission Period: You can cancel most timeshares within a short window—usually 3 to 14 days, depending on state laws.
- Legal Counsel: Consulting a timeshare attorney can help steer complex contracts.
- Avoid Scams: Stick to credible, well-reviewed exit companies to avoid fraudulent schemes.
Timeshare ownership can feel like a financial trap. While buying a timeshare might have seemed like a smart move for regular vacations, the reality often brings high maintenance fees and rigid schedules. And when life changes hit—like the COVID-19 pandemic—many find themselves rethinking their needs.
According to Brian Rogers of the Timeshare Users Group, the pandemic led many to realize, “Maybe you’ve only taken a few vacations over the last few years or so, and with the pandemic, you became completely unable to use the timeshare.”
In this guide, we’ll walk you through everything you need to know about canceling your timeshare legally, whether within the rescission period or facing other legal routes.
Understanding the Rescission Period
Canceling a timeshare legally often starts with understanding the rescission period. This is a window of time during which you can cancel your timeshare purchase without penalty. The length of this period varies by state but typically ranges from 3 to 15 days.
State-Specific Rescission Periods
Different states have different laws regarding the rescission period. Here are a few examples:
- Colorado: You have up to five calendar days to cancel a timeshare contract. (Colo. Rev. Stat. § 6-1-703)
- Nevada: The rescission period lasts until midnight of the fifth calendar day following the date the contract was executed. (Nev. Rev. Stat. § 119A.410)
- Arkansas: You have five days to cancel after the execution of the contract or up until receipt of the public offering statement. If there are issues with the public offering statement, you may bring a lawsuit within four years to rescind the contract. (Ark. Code § 18-14-409, § 18-14-403)
To cancel your timeshare legally within these periods, you must act quickly and follow the specific procedures laid out in your contract and state laws.
How to Write a Cancellation Letter
Writing a cancellation letter is the next crucial step. Even if verbal cancellations are allowed, a written notice provides a paper trail and proof that you acted within the rescission period.
Here’s what to include in your cancellation letter:
- Current Date: The date you are writing the letter.
- Your Information: Your name (as written on the contract), address, phone number, and email.
- Timeshare Company Information: The name of the timeshare company.
- Description of the Timeshare: A brief description taken from your timeshare paperwork.
- Date of Purchase: The date you bought the timeshare.
- Statement of Cancellation: Explicitly state that you are canceling the contract. For example, “I am contacting you within the rescission period to cancel this timeshare contract.”
Once your letter is ready, send it via certified mail to ensure you get a return receipt. This provides proof that your letter was sent within the appropriate rescission period.
Delivery Methods: Always follow the specific instructions in your contract regarding how to deliver the cancellation notice. Some companies may require it to be sent via registered mail, while others might accept hand-delivery.
By understanding your legal rights and following these steps, you can steer the rescission period effectively and cancel your timeshare legally.
Legal Options After the Rescission Period
If the rescission period has passed and you still want to cancel your timeshare legally, don’t worry—there are other options available. Below, we explore some practical steps you can take, including selling or transferring your timeshare and renting it out.
Selling or Transferring Your Timeshare
Resale Market
One way to get out of your timeshare is to sell it on the resale market. However, be prepared for a significant financial hit. Timeshares often depreciate in value immediately after purchase, so you may only recover a fraction of what you originally paid.
Steps to Sell Your Timeshare:
- Research: Understand the current market value of your timeshare. Websites like ARDA and Timeshare Users Group can provide insights.
- List Your Timeshare: Use platforms such as eBay or Craigslist.
- Hire a Real Estate Agent: If you’re uncomfortable handling the sale yourself, consider hiring a real estate agent who specializes in timeshare resales.
Transfer Ownership
If selling doesn’t work, you might consider transferring ownership. This can be done through:
- Gifting: You can gift your timeshare to a friend or family member.
- Charitable Donation: Some charities accept timeshare donations, although this is less common.
Legal Recourse
In some cases, state laws might provide additional avenues for canceling your timeshare. For example, in Arkansas, you can bring a lawsuit within four years if there are issues with the public offering statement (Ark. Code § 18-14-403). Consulting a consumer protection attorney can help you explore these legal options.
Renting Out Your Timeshare
If selling or transferring your timeshare isn’t feasible, renting it out can be a temporary solution. Platforms like Redweek make it easier to find renters, but there are still challenges to consider.
Steps to Rent Out Your Timeshare:
- Check Restrictions: Some resorts don’t allow owners to rent out their timeshares. Verify this with your timeshare company.
- List Your Timeshare: Use rental platforms such as Redweek or Airbnb.
- Set a Competitive Price: Research similar listings to set a competitive rental price.
Challenges
- Finding Renters: Depending on the location and time of year, finding renters might be difficult.
- Maintenance: You are still responsible for maintenance fees and any potential damages caused by renters.
Consumer Protection
Always be cautious of scams. Many fraudulent companies claim they can help you exit your timeshare but end up taking your money without providing any real assistance. Check reviews and ratings on platforms like the BBB to ensure you’re dealing with a legitimate company.
By understanding these legal options, you can steer the complex landscape of timeshare cancellation even after the rescission period has expired.
Avoiding Timeshare Scams
Identifying Legitimate Exit Companies
Navigating timeshare exit companies can be tricky. Many people fall prey to scams, losing money and ending up no closer to canceling their timeshare legally. Here’s how to identify legitimate exit companies and avoid getting scammed.
Watch Out for Upfront Fees
Be cautious of companies that ask for large upfront fees before providing any services. According to the Federal Trade Commission (FTC), legitimate companies often work on a “no upfront fee” basis or provide a money-back guarantee in writing.
Research Thoroughly
Before committing to any exit company, do your homework. Look for reviews and ratings on platforms like Google, Trust Pilot, and the Better Business Bureau (BBB). Companies with a credible online presence and positive reviews are generally more reliable.
Check for BBB Accreditation
A good starting point is to verify the company’s status with the BBB. Companies with poor reviews or no listing should raise red flags. According to the American Resort Development Association (ARDA), many fraudulent companies promise what they cannot deliver, so always double-check their BBB status.
Demand Written Agreements
Always get everything in writing. Legitimate companies will provide detailed agreements outlining their services and guarantees. If a company hesitates to provide a written contract, consider it a sign to look elsewhere.
Avoid High-Pressure Sales Tactics
Legitimate companies won’t pressure you into making quick decisions. Take your time to explore different options. High-pressure sales tactics are often a sign of a scam.
Use Trusted Resources
Platforms like Timeshare Exit News offer recommendations and reviews of top timeshare exit companies, helping you make an informed decision.
Example of a Legitimate Company
One success story shared by Timeshare Users Group involves a couple who successfully exited their timeshare by using a company that offered a written guarantee and had a strong BBB rating. They were able to cancel their timeshare legally without falling victim to any scams.
By following these guidelines, you can minimize the risk of falling victim to scams and find a reliable timeshare exit company.
Frequently Asked Questions about Canceling Timeshares
Can you legally terminate a timeshare?
Yes, you can legally terminate a timeshare. The easiest way to do this is during the rescission period, which is a short window of time after purchase when you can cancel the contract without penalty. This period varies by state but typically ranges from 3 to 15 days. Make sure to check your state’s specific laws to know your exact cancellation window.
If you’re within this period, write a cancellation letter, include all required details, and send it via certified mail to ensure you have proof of your action. For more information on writing a cancellation letter, check out our guide here.
What is the average cost to cancel a timeshare?
The cost to cancel a timeshare can vary widely. If you are within the rescission period, you can cancel without any cost. However, if you miss this window, you might need to hire a timeshare exit company or an attorney, which can be expensive.
Typical Costs:
- Exit Companies: These companies usually charge between $3,000 and $10,000, depending on the complexity of your case.
- Attorneys: Hiring a lawyer could cost you anywhere from $200 to $500 per hour, or a flat fee between $3,000 and $15,000.
Always research and choose companies with a good reputation. Avoid those that demand large upfront fees without any guarantees.
Can you cancel a timeshare membership after the rescission period?
Yes, but it gets more complicated. Here are some options:
Legal Recourse:
- Consult an Attorney: If you believe you were misled or the contract was misrepresented, an attorney specializing in timeshare law can help. This can be a lengthy and costly process but may be your best option.
Resale Market:
- Sell Your Timeshare: While this may not be profitable, you could list your timeshare on resale platforms. That timeshares often lose value quickly, so you might sell it for much less than you paid.
Renting:
- Rent Out Your Timeshare: Platforms like Redweek can help you rent out your timeshare to cover maintenance fees while you explore other exit options. Be sure to check if your resort allows rentals.
Gifting:
- Transfer Ownership: If you have paid off your timeshare, you might consider giving it to a friend or family member. They will take over the maintenance fees and responsibilities.
For more in-depth information on post-rescission period options, visit our comprehensive guide here.
By understanding your options and taking the right steps, you can successfully steer the process of canceling your timeshare legally. If you’re unsure where to start, consider a free consultation with a reputable timeshare exit company.
Conclusion
Canceling a timeshare can seem daunting, but it’s definitely possible if you know your options and act quickly. Here’s a quick summary to help you steer the process:
Legal Options
Rescission Period: The easiest and most cost-effective way to cancel your timeshare is during the rescission period. This period varies by state but typically ranges from 3 to 15 days. Make sure to check your state’s specific laws to know your exact cancellation window. Write a cancellation letter, include all required details, and send it via certified mail to ensure you have proof of your action.
Post-Rescission Options: If you miss the rescission window, you still have options. You can consult an attorney, sell your timeshare on the resale market, rent it out, or transfer ownership to someone else. Each of these options has its own set of challenges and costs, but they can help you get out of your timeshare legally.
Avoiding Scams
The timeshare exit industry is rife with scams. To protect yourself:
- Research Companies: Look for companies with a credible online presence and good reviews. Google, Trust Pilot, and the Better Business Bureau (BBB) are good sources for research.
- Demand Written Agreements: Ensure all agreements are in writing. If a company refuses to provide a written agreement, consider other options.
- Avoid Upfront Fees: Be wary of companies that demand large upfront fees without any guarantees.
Timeshare Exit News
At Timeshare Exit News, we specialize in helping you find the best solutions for canceling your timeshare legally. We recommend starting with a free consultation to explore your options. Check out our list of top timeshare exit companies here to find a reputable firm that can assist you.
By understanding your options and taking the right steps, you can successfully steer the process of canceling your timeshare legally. The sooner you act, the better your chances of a smooth and cost-effective exit.