New timeshare owners in many states are
protected under state laws
that allow them to rescind the original timeshare purchase from the resort within a few days after purchase for a full refund. … Many timeshares can be sold on the secondary timeshare resale market, but it can take some time.
Costs to Get Out of a Timeshare
On average, it costs
about $5,000 to $6,000
and takes 12–18 months to get out of your timeshare contract using a timeshare exit company. But the cost and the timeframe can vary depending on a number of factors including, how many contracts are attached to your timeshare.
- Check Your Timeshare Contract. Many timeshare contracts contain a retraction or rescission period. …
- See if the Company Will Buy it Back. …
- See if the Company Will Take it Back for Free. …
- Sell Your Timeshare. …
- Give Your Timeshare Away. …
- You’re Stuck With One Company. …
- You May Not Use It. …
- They Cost a LOT.
You can sell your ownership with a licensed brokerage without paying any upfront fees. However, if you are behind on your timeshare maintenance fees or have any outstanding dues, you will need to pay them off first. Normally, the buyer will pay for closing costs when making an offer on your timeshare.
If you think you may have been tricked into buying timeshares and you wish to out, here’s a good news:
it is possible to get out of the timeshare contract legally
. With consumer protection laws, you have the freedom to dispute the contract due to breach or consumer rights violations.
If you stop paying on your timeshare loan,
you face foreclosure
. Foreclosure is the process whereby the lender files to take possession of the property and sell it at auction to recover the money you owe. … Your contract authorizes the trustee to sell the timeshare in the event you stop paying on it.
On average, the cost of professional cancellation services is
around $4,000
. This typically gets you a team that will work with your timeshare company on a settlement or manages the resale process for you.
- Call the developer.
- Rent it out.
- Sell it on the resale market (expect to take a hit).
- Gift it to a friend, family member or stranger.
- Stop your payments (but expect consequences).
- Avoid scams.
In fact, it can be hard to even give a timeshare away, let alone sell it. One of the reasons it can be so hard to sell a timeshare is
because timeshare loans tend to have a higher interest rate than traditional home loans
. For example, timeshare loans can have an interest rate from around 6% to 17%.
A
deed back clause or program allows you to give your timeshare back to the resort
. Until then, you remain responsible for paying the maintenance and special assessment fees along with your mortgage payments.
- More than $2.8 Billion in Timeshare Sales and Rental Offers – Delivered to timeshare owners just like you.
- No Hidden Fees – We’ll clearly explain all your options and answer any questions.
Cancelling or getting out of the Contract
Timeshare schemes must provide you with
a cooling off period within
which you can provide written cancellation of the contract to the Timeshare company without incurring penalties. If you do this you will be entitled to a refund of all monies paid.
So, if you wish to cancel your resort timeshare purchase, you generally have a period of
5-15 days after purchase
wherein you may legally rescind the contract. After the rescission period has expired, you can no longer cancel your purchase without penalty.
- Talk to your developer about buying back your property. Some developers and resorts may be willing to work with you on buying back your ownership. …
- Gift your timeshare to a family member or friend. …
- You may be able to cancel your ownership. …
- Post your timeshare for sale.
One of the biggest problems with timeshares is that
there typically is no easy exit
. Those annual fees and special assessments are due as long as you own the timeshare. You may not be able to find a buyer if money is tight or you’re no longer able to use it.
