When an owner determines that timeshare ownership is no longer a fit for their lifestyle, understanding which timeshare exit avenues to take can be a daunting task. Unfortunately, in some cases, owners can unwittingly fall victim to fraudulent activity from a seemingly reputable timeshare exit company, potentially resulting in major financial loss or significant damage to their credit rating.
To help owners avoid timeshare scams, and to understand how to exit timeshare legally, ARDA created the Coalition for Responsible Exit — an online resource with background and links to information on how to sell, rent, and exit timeshares via timeshare developer-generated no- and low-cost programs designed to make the process safe and secure. In addition to this resource, ARDA has outlined the following steps to help timeshare owners better understand their timeshare exit options.
Before Buying a Timeshare
The first step in any major purchase decision is to be as informed as possible before completing the purchase – and timeshare ownership is no different. Before attending a timeshare sales presentation, ARDA encourages all potential owners to ask themselves these five questions to determine if timeshare ownership is truly the right fit for their lifestyle.
Options for Recent Buyers
If you’ve recently purchased a timeshare but have quickly determined that timeshare ownership is not for you, look into your state’s rescission law. Recission is a procedure created by state law which allows recent buyers of timeshare to cancel their contract without penalty. Typically, the period to rescind timeshare ranges from three to fifteen days after signing your contract. If you’re still within this timeframe, act quickly by sending a certified timeshare cancellation letter to the developer. Some states even allow email rescission. Ensure all details, such as the names on the contract, contract/member number, purchase date, and a statement of cancellation, are included to avoid any disputes.
Other Options for Exiting Your Timeshare
If you have exceeded the rescision period in your state, there are still several other options for safely and efficiently exiting your timeshare.
Deed-Backs
First, check with your timeshare developer to determine if they offer a deed-back program that will allow you to return your timeshare to them. The Coalition for Responsible Exit’s website, ResponsibleExit.com, has a directory of timeshare developer brands and information on how to contact them. If your timeshare resort developer is not listed, your exchange company may be able to connect you to your resort or owners’ association, as well as provide additional information that can help to inform your decision, including usage options, in addition to selling your timeshare. Information on how to contact your exchange company is also available at ResponsibleExit.com.
Sale
Selling your timeshare on the timeshare resale market is another option. While this involves a few nuances, it is an effective exit strategy if your timeshare is fully paid off and your maintenance fees are up to date. The most efficient way to sell timeshare on the timeshare resale market is to enlist the help of a resale company. Visit the Resale Provider Directory on ResponsibleExit.com to explore reputable third-party resale sites and brokerage companies that will manage your timeshare listing for you while guiding you through the resale process from start to finish.
Gifting
Gifting your timeshare to a family member or friend is another option, but ensure they understand that they will be taking over any maintenance fees or other property obligations. If you are considering this route, legal counsel can help draft a transfer agreement to formalize the gift and outline any conditions.
Legal Counsel
If your timeshare situation is more complicated, perhaps involving multiple contracts or upgrade offers, hiring a contract law attorney might be preferable. These legal professionals specialize in navigating timeshare contracts and can identify potential exit strategies that you might overlook.
Avoiding Timeshare Exit Scams
Timeshare owners who are looking to exit their timeshare quickly risk falling victim to fraudulent exit companies that promise fast and easy solutions for a hefty upfront fee. Common red flags include high-pressure sales tactics, guarantees of quick exits, and demands for large upfront payments. To avoid these scams, ask yourself these three questions before engaging with a timeshare exit company:
Who Is the Company?
- Have you heard of them? Can you trust them?
- Did they contact you unsolicited?
- Do they have a physical address, or is it a PO Box or virtual office?
If a timeshare exit company has reached out to you without you contacting them first, or if there is no way to verify their legitimacy, do not engage with them.
What Do They Want Me to Do?
- Do they want you to pay upfront money before action?
- Stop paying your mortgage or fees?
- Get foreclosed on?
- Pay money in order to get money?
Any of these suggestions are a clear indicator of a fraudulent company.
What Evidence Supports Their Message?
- Do they promise a solution with no evidence supporting how they’ll get to that solution?
- Do they make guarantees they have no way to deliver on?
- Do they still get paid if you get foreclosed on and suffer negative credit ratings?
You should always use independent sources to verify claims or debunk them, then ask yourself if their claims still seem accurate. Look for third-party reviews, check their business history, and verify their claims.
Remember, you should always prioritize legal and transparent methods over seemingly easy but risky alternatives.
Resources for Getting Out of a Timeshare from ARDA
By following these strategies and remaining vigilant, timeshare owners can successfully exit their contracts without falling into financial traps or scams. The key is to understand your timeshare purchase, act promptly, and seek verified, professional advice when necessary.
Using legitimate resources outlined here on ResponsibleExit.com will also ensure you’re using the safest method possible to exit your timeshare.
Finally, if you feel you have already been defrauded or are a victim of a timeshare exit scam, contact your State’s Consumer Protection agency, State Attorney General, and/or your local law enforcement office.