If you own a timeshare, chances are you’re wondering how to get out of it. Most people who own a timeshare ask this question sooner than later. Luckily, if you have recently signed the contract, you may still be within the rescission period. However, even if this time has passed, you may still have options.
Rescind the Contract
Rescission is a legal doctrine that allows for the cancellation of a contract within a specified time period after signing the contract. Essentially, this is a “buyer’s remorse” clause, because the purchaser of the contract can rescind the contract after they’ve had an opportunity to reflect on the deal (and after they are no longer being pressured and incentivized by salesmen). The time period allowed to rescind a contract is dependent on state law, so it could vary from state to state. It is important to note that the state law where the timeshare is located is what applies, not the law of the state in which you live.
Negotiation
Even if the rescission period has passed, you may be able to negotiate with the timeshare provider to take it back. Some timeshares actually deed you a portion of the property, and you may be able to negotiate a deed-back with the timeshare provider. More likely than not, you will have to sweeten the deal and incentivize the timeshare provider to take the property back and let you out of the contract.
Sell to a Third-Party
If the rescission period has ended and the timeshare provider refuses to take the property back, another option is to sell the timeshare yourself to someone else. Most likely, you will not want to sell to a family member or friend and burden them with the same problem you’re trying to get rid of. However, you can list your timeshare for sale online, in the newspaper, or any other means that put you in contact with potential buyers. It is important to consider whether you can even sell your timeshare in the first place. If there is still a loan on the timeshare or it is otherwise encumbered, it will be practically impossible to sell.
What Not to do
Even if you are no longer using your timeshare, do not stop making payments on it. Unpaid dues and assessment fees will begin to accumulate, which could potentially generate late fines and additional fees. Eventually, the timeshare company will turn it over to collections, and you will now have a collection agency after you on top of still being stuck with the timeshare. If the collection agency is not able to settle the debt, they will likely sue you for all amounts owed.
Another equally bad idea is to sublease or rent your timeshare. Although this may sound like a good way to recover some of the money you’re losing, it presents a substantial risk and does not solve the underlying problem. Some timeshare companies don’t allow this practice at all. Even if it is permitted, the owner is still liable for the sublessee, meaning the timeshare company can come after you for any damage done by a renter.
If you’ve tried the foregoing options and are still having trouble, it’s probably time to call an attorney. Getting legal representation will help you better understand the specifics of your situation and what options are available to you. Additionally, timeshare providers generally take things more seriously and are more willing to negotiate once legal representation is involved.
