How Much Does It Cost to Get Out of a Timeshare?
Nearly 10 million U.S. households own timeshare products that allow them to travel the world in spacious accommodations with top-tier amenities. While 90 percent of current owners are happy with their timeshare, changes in travel preferences or other life circumstances can leave some owners wondering how to get out of a timeshare when it’s no longer a fit for their lifestyle.
While there are multiple ways to approach a timeshare exit strategy, ARDA is sharing the most efficient way to deed-back timeshare to a timeshare developer.
Understanding Timeshare Deed-Back Programs
A timeshare deed-back program provides owners with a way to return their timeshare product to the timeshare developer that sold it to them.
Utilizing a deed-back program to exit a timeshare contract is the most direct way to get out of a timeshare. Since an owner is working with the timeshare developer when they deed back a timeshare, they do not need to employ the third-party timeshare exit companies or timeshare resale companies that are needed when selling a timeshare without the developer’s involvement.
To qualify for a timeshare deed-back program, owners typically must be in good standing with maintenance fees and current on their mortgage payment.
Steps to Deed Back Your Timeshare
Most major timeshare developers offer a deed-back program. Any owner looking to deed-back a timeshare should first contact their developer directly to learn about their options. If an owner’s timeshare resort developer is unable to help, their exchange company – likely either RCI or Interval International – may be able to connect them to their resort or Homeowners’ Association (HOA), as well as provide additional information that can help to inform their decision to exit, including continued usage options.
Prior to contacting their timeshare developer, owners should make sure to prepare the necessary documentation, including proof of ownership, identification, and a written request to deed back the timeshare.
Alternatives to Deeding Back Your Timeshare
If a timeshare deed-back program is not available, owners can still exit their timeshare via a couple of routes:
Listing the timeshare on the resale market: Owners who are interested in a selling a timeshare can elect to do so themselves through sites like RedWeek and eBay. They also have the option to enlist the help of a third-party resale company. It’s important that owners who want to explore this option visit the Rental Provider Directory on ResponsibleExit.com to ensure they are working with reputable companies.
Renting out a timeshare: Renting out a timeshare to friends and family is a way to maintain ownership of the property while offsetting maintenance fees through the revenue generated from renting. Owners can also list their timeshare on various short-term rental platforms, but only if this option is allowed under their timeshare contract. Owners can use the Rental Provider Directory to find the platforms.
Gifting a timeshare: Gifting a 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.
Avoiding Timeshare Exit Scams
Unfortunately, some deceptive and fraudulent companies have infiltrated the timeshare resale market. To help owners safely and effectively exit their timeshare, The Coalition for Responsible Exit has created these tips on how to get out of a timeshare without falling victim to scams:
- If someone contacts you unsolicited and says they have an “interested buyer” for your timeshare, this is fraudulent. Do not engage with them!
- If you receive an unsolicited call from someone claiming to be a representative of ARDA or ARDA-ROC or another legitimate company, you should still consider this to be fraudulent, unless someone from the team is returning a request you have submitted.
- Be wary of companies who contact you with false promises of modifying, cancelling or transferring your timeshare for an upfront fee. These are almost always fraudulent.
- If you’re asked to pay an upfront fee, or wire money for a “service”, “tax”, or any other “requirement” for a sale to be completed, don’t do it – that is a scam. This does not include nominal advertising fees that a legitimate reseller may ask an owner to pay up-front.
- If an offer sounds too good to be true, it likely is. Scam companies will typically entice owners by saying their buyer is offering a purchase amount equal or close to their purchase price.
ARDA’s Resources for Timeshare Deed-Backs
Timeshares are most enjoyable when used regularly. If a timeshare owner no longer uses their timeshare or can no longer pay maintenance fees, it might make sense for them to explore their exit options, starting with a deed-back program.
If an owner has spoken with their developer and found there is no deed-back program available, ARDA has several other resources for helping them exit their timeshare legally and safely.
Owners can also contact ARDA directly for assistance at (855) 939-1515 and [email protected].