Timeshare ownership allows families to travel to new or favorite places in modern, multi-bedroom suites with full kitchens, living and dining areas. While many owners enjoy these spacious accommodations, year after year, certain lifestyle changes might lead owners to seek information on selling a timeshare. When this happens, the first question these owners usually ask is: How much does it cost to exit a timeshare?
Despite common misconceptions, there are several low cost or free legal ways to exit a timeshare, as highlighted by ARDA below.
Utilizing the Rescission Period
The cost to exit a timeshare is lowest when owners utilize their timeshare rescission period.
Recission is a procedure created by state law which allows recent buyers of timeshare to cancel their contract without timeshare cancellation fees. Typically, the period to rescind timeshare ranges from three to fifteen days after signing a contract.
Recent timeshare purchasers should 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.
Exploring Timeshare Deed-Back Programs
Giving back a timeshare to the developer through a timeshare deed-back programs is another way to lower the cost to exit a timeshare.
Most major timeshare developers offer timeshare deed-back programs. 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 – 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.
Selling Your Timeshare
Another option available to owners who are interested in getting out of a timeshare is listing their unit on the timeshare resale market.
Owners who are interested in selling a timeshare can elect to do so themselves through sites like Timeshare User Group, 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.
Hiring a Timeshare Exit Company
While there are timeshare exit companies that claim success in their marketing, there are many exit companies who are the subject of criminal and civil investigations, that take money from consumers without providing any services and that have shut down leaving consumers high and dry. The Coalition for Responsible Exit is committed to ensuring owners can get information and support about how they can safely pursue timeshare exit options while avoiding timeshare scams.
If an owner elects to work with a third-party exit company, they should first review the 3 questions to ask about exit companies available on ResponsibleExit.com
The Financial Implications of Stopping Payments
Many third-party exit companies will advise owners to simply stop timeshare payments altogether as a way to get out of a timeshare quickly. Be wary of any exit company that tells you to stop making your maintenance fee payments or asks for money upfront for services to be rendered in the future. Often the fine print of their contracts considers it a success when an owner gets foreclosed on entitling them to keep the money.
Doing this can also lead to long collection efforts and negative marks on your credit report.
Instead, owners should first explore the ARDA-approved avenues to selling a timeshare outlined above.
ARDA’s Trusted Advice Might Reduce Your Cost to Exit a Timeshare
The cost to exit a timeshare can be significantly reduced for owners who avoid enlisting the help of fraudulent exit companies and instead look into safe, effective ways to exit their timeshare.
ARDA has several resources for helping owners exit their timeshare legally and safely.
Owners can also contact ARDA directly for assistance at (855) 939-1515 and [email protected].