Getting rid of a timeshare can be a major challenge, even if it’s fully paid off. Owners are still responsible for rising annual maintenance fees, special assessments, and usage restrictions. Despite no longer owing a mortgage, many find the ongoing costs and lack of control over availability make ownership more of a burden than a benefit, prompting them to seek a permanent exit.
Thankfully, there are options available to do so. You can also seek help from special exit companies that will take on your case from start to finish. They offer better success rates and have “pay on success” or escrow payment options that work best for the owner’s wallet. This article will clarify the options available for those seeking to exit their timeshare ownership responsibly and legally.
Understanding Your Timeshare Situation
A paid-off timeshare means you’ve completed all purchase payments, typically after 10 years of making payments on a high-interest mortgage loan arranged through the resort. However, it doesn’t absolve you from paying off all the ongoing costs, such as maintenance fees, special repairs and renovations, and property taxes. Not only are they recurring, but they can increase annually by 5-15%.
Moreover, some timeshare contracts include perpetuity clauses that bind your heirs to paying fees indefinitely, obligating them to a financial burden for something they may not want, have a use for, or can even access depending on availability.
Legal Options for Exiting a Paid-Off Timeshare
A few options are available to you if you want to sell off a paid-off timeshare within the limits of the law. If you’re quick, you can use the Cooling-Off period to exit a timeshare or request the resort for a deed-back. Additionally, you can request professional help as well.
1. Use the Rescission Period (if applicable)
The rescission period is a legally mandated timeframe during which buyers can cancel timeshare contracts with zero penalties. The timeframe varies by state, so do check what your state laws allow. However, it typically ranges from 3 to 15 days.
To use this option, you must submit a written cancellation notice to the developer; the sooner, the better. The contract will contain instructions, so ensure that you read it thoroughly prior to writing your notice. Use certified mail to send the notice and maintain all proof of correspondence.
2. Request a Deed-Back from the Resort
Many resorts offer deed-back programs where developers allow owners to return the timeshare. The property must have been paid in full, and all accounts must be current with zero pending payments.
Additional conditions may apply, and these can vary by resort. If your rescission period has expired, this may be the next best option to explore. Contact the resort directly to inquire about eligibility. You may be required to submit documentation, and some resorts may charge a fee if they agree to accept the deed back.
3. Sell Your Timeshare
You can also attempt to sell your timeshare if you have paid off the loan. Begin by researching similar listings by determining your timeshare’s realistic market value. Then, create a listing on well-reputed sites such as RedWeek, Timeshare Users Group (TUG), or resort-specific resale programs.
Be cautious of companies that request upfront fees for listing services, as scammers often employ this tactic. Instead, opt for services that charge a commission upon a successful sale. Another factor to consider with this option is the sale amount, which will be considerably less than your buying price.
There isn’t a big market for timeshares, and selling your timeshare will be difficult. Also, remember that selling a timeshare typically requires you to pay the next year’s maintenance fees upfront, a transfer fee to the resort, and closing costs to a title company to process the transfer.
4. Seek Professional Assistance
If your timeshare contract contains complex clauses or you’ve encountered resistance from the resort, then using the services of an exit company is your best bet. These companies specialize in timeshare exits and can handle your case better. They can help negotiate with the resort owners, help transfer the resort to a new owner, or help provide legal assistance in cancelling contracts with unfair conditions.
Do your research and opt for companies with proven track records and a good reputation in the market.
Using an attorney is also an option, but it is not advisable. While an attorney may take up your case, they aren’t exactly familiar with timeshare law, and the case often ends up against you. They do not have results-based guarantees, meaning there is no certainty of success. Moreover, they charge by the hour or per letter sent, which means you will lose thousands either way if you exit the timeshare.
How much does it cost to exit a Timeshare?
Depending on your chosen path, you must pay a fee to exit a paid-for timeshare. Cancellations during the rescission period are the best-case scenario and cost nothing. Deed-back programs may charge a processing fee.
If you’re selling your timeshare, expect to pay for title transfer and escrow services, ranging from $300 to $700.
While these costs may seem substantial, they can be offset by eliminating ongoing maintenance fees and other long-term obligations.
What to Avoid When Exiting a Timeshare?
Many owners feel tempted to rent out the timeshare further. While this may seem like a viable solution to offset maintenance fees, it is often not sustainable. The rental market is saturated, and finding renters can be challenging. Additionally, rental income may not cover all associated costs, leaving you with continued financial burdens.
Some owners also stop paying for maintenance as an act of rebellion, but that opens another can of worms. Failing to pay maintenance fees can result in collection actions, damage to your credit score, and potential legal action. It’s crucial to continue fulfilling your financial obligations until a formal exit strategy is in place.
How to Protect Yourself when Exiting a Timeshare?
Since many owners are trying to exit timeshares, it has inspired numerous frauds and scams to target them for a quick profit. As such, you must keep a sharp eye out for red flags. If you use the services of an exit company, then choose one with a good track record and reputation in the market.
Research companies thoroughly by checking platforms such as the Better Business Bureau to protect yourself. Review the contract thoroughly and keep proof of every correspondence.
Is It Worth It to Get Out of a Timeshare?
Exiting a timeshare can provide significant financial and emotional relief. It eliminates the obligation of paying mounting maintenance fees, alleviates the headache of inheritance complications, and more. However, exiting a timeshare has significant costs, sometimes in the thousands.
So, before deciding, ask yourself if you can pay that cost. If the answer is yes, and the idea of paying recurring fees is not ideal, you should pursue getting out of a timeshare.
Choose Lemon Lion Consulting For Your Timeshare Exit
Navigating the process of exiting a paid-off timeshare requires a lot of thinking, planning, and effort in execution. A few options are available to you, depending on your specific situation. You can use the rescission period to exit your timeshare if you are within the timeframe. If the resort agrees, then you can use a deed-back program. If that doesn’t pan out, professional help, such as Lemon Lion Consulting, may be the answer.
They are a leading timeshare exit company with many successful exits. They have over 20 years of experience helping countless owners exit their timeshares. They have freed their clients from over $40 million in timeshare debt. Contact us today to get a free consultation for your timeshare problems.
