Exiting a timeshare can be complex, but understanding what options you have will help you make an informed decision. Not every option may be safe or legal, so to ensure that you exit your timeshare legally, you will have to approach this tactfully and with the right knowledge. You have a number of options available.
If you’re lucky and within the rescission period, you can cancel the timeshare purchase, get full compensation and walk away with no penalty. You can request a deed-back option if your mortgage is paid off, or you can seek professional help if you cannot get through to the resort. But the journey to legally exit a timeshare begins by reviewing your contract and knowing key terms.
Understanding Timeshare Contracts and Your Rights
Timeshare contracts are airtight documents that a resort and the owner sign that outline the limitations and conditions of a timeshare ownership. These contracts can vary, but they generally fall into two categories: deeded and right to use. In deeded contracts, an owner owns time at the property, but there is a deed that is registered with the county. Right-to-use contracts are similar but there is no deed involved. Deeded contracts are for life and pass on to heirs in case of death, while right-to-use contracts last between 45-60 years. Ultimate ownership resides with the resort.
In addition to this, your contract will have certain conditions and limitations regarding the usage of your timeshare. It may also contain limitations regarding resale, renting, fees and costs, among others. The most important clause you need to look out for is related to the rescission period. This is a timeframe mandated by state law that allows owners to cancel their timeshare purchase as if it never happened. The exact period varies by state and allows the cleanest exit.
Legal Methods to Exit Your Timeshare
1. Using the Rescission Period
Review your contract and check your state’s laws to see if you are still within the rescission period. As mentioned before, the timeframe varies but typically it will be between 3 to 15 days. If you are still within this period, then act promptly. Write down a formal notice of cancellation to the resort clearly stating that you want to cancel.
Then, send it via certified mail and request a return receipt to ensure proof of delivery. The rescission period is short, but canceling during this period typically results in a full refund and has no impact on your credit score.
2. Explore Deed-Back Options
If the rescission period has passed, then you can request a deed-back option from your resort, but that option comes with its challenges. Not all resorts offer a deed-back option and even if they do, you need to first be eligible to opt for it.
An owner must have fully paid off their timeshare and must have no outstanding mortgage payments. Their account must also be current, and all maintenance fees and upkeep costs must also be paid. If the eligibility criteria has been met then you can contact your resort to inquire about exit options. If you qualify, then you will be granted an exit. The resort then returns the property from the owner, relieving them of future obligations. However, these programs do not provide any financial compensation.
3. Working with Timeshare Exit Companies
If both above-mentioned options are not viable, then consider working with an exit company. These are specialists at helping owners exit their timeshares and have teams of professionals to help them do so. They work by building a case against the resort highlighting their deceptive practices and then use a variety of pressure tactics against the resort to let the owner go.
Basically, it would be much more expensive for the resort to keep the owner than to release them from the contract. When choosing to work with an exit company, verify their credentials and reputation. Check with the Better Business Bureau and see what rank they have and whether they are accredited. Additionally, look into their complaints that past clients have left. Positive reviews can be faked but complaints paint a more accurate picture for your future experience.
4. Selling Your Timeshare
As a last resort, you may consider selling your timeshare on the resale market but it comes with its challenges. For starters, the resale market is saturated with an abundance of owners trying to sell their timeshares and not enough buyers. Then, those timeshares that do manage to sell, do so for a fraction of the price. There have been timeshares being put up for sale as low as $1.00.
But if you decide to choose this option, start by researching the market. Look into timeshares that were successfully sold recently. See what prices they were sold for and use that data to determine the price to set for your timeshare. Then, you can create a listing for your timeshare on reputable platforms like Timeshare Users Group or eBay. The benefit here is that owners make the listing and negotiate with buyers themselves. So there is no middleman involved to give you unrealistic expectations.
What NOT to do?
Even while pursuing a legal exit, many mistakes an owner can make can hurt their chances of a successful exit. Some owners stop payments prematurely before their exit has been finalized. This tanks their credit score and remains as a blemish on their record for up to seven years. If the mortgage was with a separate collections company, they may pursue a lawsuit for defaulting on payments. It’s a roll of the dice to stop payments without showing clear intent to resolve the matter with the resort or the collections company.
Additionally, some owners fall for scams that offer exits in exchange for large fees. When working with professionals, look into their record and success rates. When working with brokers, do not trust anyone who guarantees a sale, as they are likely not being truthful and are looking to make a quick buck.
Lastly, do not ignore your contract’s terms and conditions. Failure to adhere to them can lead to massive legal issues and close the window to an exit.
Choose Lemon Lion Consulting For Your Timeshare Exit
Exiting a timeshare requires careful consideration of your contract type, financial obligations, and available options. There are a number of options available such as utilizing the rescission period, exploring a deed-back program, or resale on a secondary market. If these don’t work, you can consider seeking professional help from a timeshare exit company such as Lemon Lion Consulting.
Headquartered in 2017 in Las Vegas, Nevada, with offices in Orlando and Kissimmee, Lemon Lion Consulting has become a leading timeshare exit company with a solid, proven track record of successful exits. They have a team of professionals with over 20 years of combined experience. Lemon Lion Consulting is accredited from the Better Business Bureau and holds an A+ Diamond rating.
Their team of experts provides a range of services, including timeshare cancellation, debt removal, credit monitoring, asset protection, and vacation planning. Contact Lemon Lion Consulting today for a free consultation for your timeshare exit problems.
