At first glance, a timeshare might seem ideal. You get a place to stay in a location you love, reserved just for your use for a set time each year.
But then the costs begin to pile up as assessments bump fees each year. Suddenly, you’re trapped in an ironclad contract that has you paying more and more with no end in sight.
Unfortunately, timeshares have a bad rap for a reason, chief among them the variable fees that owners get stuck with. One study found that the contract recission rate is 15% and that 85% of all timeshare owners regret the decision.
Fortunately, there are ways out of a timeshare even if you’ve signed on the dotted line. Let’s look at how to exit a timeshare.
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Rescind Your Contract
If you recently signed a timeshare contract that you now regret, the good news is that you may still be able to exit this agreement.
This brief opportunity to get rid of a timeshare begins immediately after signing a contract. It usually lasts about 15 days, though this number varies by state.
Federal laws mandate a minimum of three days following signing a contract for owners to reverse their decision. There are legal movements in states such as Arizona to extend the recission period.
Your contract should include a clause on the “right to cancel” which will spell out how long you have. You do need to act fast if you don’t want to be on the hook for these expenses.
To rescind the contract in the brief window after signing, you will need to write a cancellation letter. This should include information like the purchase date and a statement that you are canceling the contract.
If you’re outside of the window to cancel your contract, another option is to sell your timeshare. Some timeshares are sold for as little as $1, which shows that there’s not much demand for them.
Unfortunately, timeshare brokers often charge high fees and may make promises they have no intention of keeping. That’s why it’s best to list the timeshare yourself.
One option that many timeshare owners choose is to hire a cancellation company. These companies draw on their experience in the industry to help you get out of paying exorbitant fees. They know the best methods for how to cancel timeshare contracts.
There are bad-faith players in this business, so it’s worthwhile to be careful when you choose a timeshare exit company. If they hit you with a hard sales pitch—similar to what you experienced when you bought a timeshare—go with someone else.
It’s worthwhile to wait and find a legitimate company that will help you get out of a timeshare contract legally.
Don’t Pay Those Ridiculous Fees
You should now have a better understanding of how to exit a timeshare now before you have to pay those constantly escalating costs again. Know that you do have options to get out of your timeshare, so start to consider what the best choice for you is next.
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