Exiting a timeshare can be complex, but understanding your options can help you make an informed decision. There are many options for owners, but not all may be feasible. Some might be more of a hassle to choose rather than simply staying in the contract and continuing to pay your obligations.
However, other options grant owners clean exits, largely protect their credit scores, and give them peace of mind. In this article, we will discuss these and help you decide on the best way to exit a timeshare.
Understanding Your Timeshare Agreement
Timeshare agreements can vary, but they generally fall into two categories: deeded ownerships or vacation club memberships. In deeded ownerships, an individual may own time at the property for a particular period. In memberships, owners own the right to use a property for a certain period each year, or they may get points that they can use to stay at different locations. Both are similar, but the main difference is that memberships don’t come with a deed, but deeded contracts do, hence the name.
Deeds are recorded in the county, so the owner is tied to the contract for life and beyond. In case of death, the contract transfers to heirs. Memberships, on the other hand, can last between 45-60 years, but they are not recorded with the county and usually do not roll to heirs.
These contracts are airtight, with little room to maneuver. Other conditions typically written in these agreements may limit certain exit strategies. So, to start your exit process, you must first carefully review your contract to determine what your options are.
Legal Options for Exiting a Timeshare
1. Utilizing the Rescission Period
The Rescission Period, or the cooling-off period, is a legally mandated timeframe for an owner to cancel their timeshare contract with no penalty. The exact timeframe varies by state, but typically it falls between 3 to 15 days. Cancelling during this time also gets owners some compensation but the timeframe is short. It is also available to owners who have just purchased their timeshares.
First, owners must check their contract and the state’s specific timeshare laws to determine if they qualify to use the rescission period. If they do, they must write a formal notice of cancellation to the resort and send it via certified mail within this period. Be sure to keep receipts as proof of delivery. This is the single best way to exit a timeshare, but many owners may not be within this period.
2. Exploring Deed-Back Programs
If your timeshare has been fully paid off, there is no outstanding mortgage, and you are up to date on your maintenance fees then you may qualify for a deed-back program. Some resorts offer these programs, allowing you to return the timeshare to the developer. If you have ensured these factors, contact the resort to see if you qualify for a deed-back option. If they agree, the resort will take back the timeshare.
However, unlike the rescission period, you won’t receive compensation for it. If that timeframe has passed and you qualify, this may be your second-best option.
3. Using an Exit Company
If the previous options do not pan out, then consider hiring a timeshare exit company. These companies have teams of professionals that will help you review your contract, identify what options you have and then act accordingly. Timeshare exit companies build a case against the resort and highlight its unethical and deceptive behavior. Then they employ tactics such as complaints, public exposure, and other strategies to pressure the resort into letting the owner go from the contract.
Essentially, they make it more expensive and inconvenient for the resort to keep an owner than to release them. Before choosing to work with a company, ensure that you do your research. Check their rating with the Better Business Bureau and see if they are accredited or not. Additionally, check out user reviews and their track record. If they have a high rate of success of timeshare exits, it may increase your chances too. Do check what complaints past clients have left online and whether or not they were addressed. Positive reviews can be faked to create a better impression, but researching complaints will allow you to make a better decision.
4. Selling Your Timeshare
Another option is to sell your timeshare on the secondary market, but it can prove to be challenging for a few factors. For one, there is low demand for timeshares. The resale market is filled with owners trying to sell their timeshares and not enough buyers interested in acquiring them. If a timeshare does manage to sell, it often for a fraction of the price. Some timeshares have been sold for as low as $1.00.
To sell your timeshare, first review your contract and see if there are any conditions the resort has added that limit resales on a secondary market. Some contracts have Right of First Refusal clauses, which allow the resort to buy the property before another buyer buys it. Then, begin by researching the market. You want to look for what price timeshares have previously sold for. This will allow you to accurately set your price and increase your chances of a sale.
Use trustable resale platforms like Timeshare Users Group or eBay to create a listing for your timeshare. These platforms do not require an upfront fee and there is no third-party broker involved, so the risk of being scammed is low. If anyone promises to guarantee a sale and demands a fee, they are likely a fraud.
Do’s and Don’ts of Timeshare Exit
Do’s:
- Review Your Contract: Understand your obligations and exit options. Identify any specific conditions regarding deed-back options, resales, transfers, etc.
- Act Promptly: Utilize the rescission period if you are still within the timeframe.
- Maintain Payments: Stay current on fees and mortgage payments.
- Seek Professional Advice: Consult with a timeshare exit company to identify your options.
Don’ts:
- Don’t Ignore Contract Terms: Initiating exit proceeding without knowing certain conditions in the agreement is a death sentence.
- Don’t Fall for Scams: Be wary of anyone promising guaranteed exits in exchange for fees.
- Don’t Stop Payments Prematurely: Stopping payments when the exit hasn’t been finalized is a fatal mistake that can result in foreclosure and tank your credit.
Choose Lemon Lion Consulting For Your Timeshare Exit
There are many ways to exit a timeshare, but not all may be best for you. Carefully read your contract to identify your options. If available, utilize the rescission period. Request a deed-back option if the time has passed and the timeshare is paid off. Consider hiring a timeshare exit company, such as Lemon Lion Consulting, if options have run out.
Lemon Lion Consulting is known as a leading timeshare exit company in the industry. They have an expert team with over 20 years of combined experience under their belt. Using their expertise they have helped cancel over 40 million dollars in timeshare debt. They offer a range of services to their clients, including timeshare cancellation, debt removal, credit monitoring, and asset protection. If you want to exit your timeshare in the best way possible, contact Lemon Lion Consulting today for a free consultation.
