According to the latest statistics from ARDA, 9.9 million US families owned a timeshare interest in 2019.
That’s before the world turned upside down, though. Are you among the millions of timeshare owners who can’t afford to pay for this luxury due to recent events?
Most timeshare arrangements have a Caveat Emptor clause in the fine print. This is a Latin phrase meaning, ‘let the buyer beware.’
In the simplest terms, if you don’t do your due diligence before committing to a timeshare purchase, you’re on your own.
There are ways to get out of a timeshare contract. So, don’t panic, read this instead.
Read Your Contract Again
If you’ve only just signed up for a timeshare arrangement, look for a ‘cooling off’ period in the contract. Most timeshare companies give you a chance to change your mind within a specified time.
Some states have laws regarding this time frame, so double-check the legalities in your area, and compare the two.
If you feel intimidated by legal jargon, it’s a good idea to get assistance with legally getting out of a timeshare contract. Take a look at these helpful tips for choosing a timeshare exit company.
Ask the Developer to Take It Back
Some timeshare companies will take your week or weeks back. This is the best way to get out of a contract timeshare if it applies to you.
Always make sure you’re speaking to someone in the buy-back department when you call them up. Otherwise, you could end up speaking to a sales consultant who’ll only convince you to stay in the fold.
At the very least, you might convince them to take back your timeshare without paying you out.
Get Out of a Timeshare Contract by Selling It
When you re-sell your timeshare, you won’t recoup what you paid for it, let alone all the annual payments you’ve made to date. So, this is only an option if you’re desperate.
It’s easy to find timeshare resale companies online, or you can sell your weeks privately if preferred.
While timeshare laws allow you to donate your timeshare to someone else, it’s difficult to find people who will commit to the ongoing financial burden of ownership.
Whether you sell or gift your timeshare, you’re responsible for any outstanding amounts if they stop paying their dues.
Accept the Consequences of Not Paying for It
Stopping your payments is the last resort for getting out of a timeshare contract when you’ve tried everything else. Since you’re defaulting on a legally binding agreement, nonpayment will affect your credit report negatively.
Ultimately, the timeshare company will foreclose on the deal, and you’ll be rid of your timeshare interest forever.
Don’t give up hope before you’ve tried all these ways to get out of a timeshare contract. Remember, if all else fails, you can still rent out your timeshare to vacationers.
By renting it out instead of selling it, you can still enjoy the benefits of the timeshare when your circumstances improve. Yet, your best defense against future issues with a timeshare is still doing your homework thoroughly before you buy.
Would you like to explore other vacation options instead? Browse our blog for more top travel tips.