Timeshares have been widely sold in the United States since the 1970s, and the problems with timeshares have been well-documented. With so many unhappy timeshare owners, one might wonder what makes timeshares such an enduring industry. The answer, of course, is the timeshare contract: a document that binds owners into a lifetime of paying annual fees, special assessments, and other costs. This may lead you to wonder, “Are timeshare contracts enforceable?”
The answer is yes, but keep in mind that no contract, not even the sneakiest timeshare purchase agreement, is unbreakable. Timeshare agreements have to follow the strict requirements of federal and state laws, and a wise use of those laws can help you achieve a timeshare contract cancellation.
Timeshare developers won’t make it easy on you though, and there are many smart, well-educated timeshare owners who can find themselves in over their heads. That’s where a timeshare exit company like Centerstone Group comes in. In this article, we will explain some of the finer points of timeshare contracts and why it’s a good idea to get expert help when trying to rid yourself of one.
Yes, timeshare contracts are legally enforceable. In most cases, this means that, if you do not follow the terms of the contract, your timeshare developer will have legal remedies against you. Those remedies can take several forms, including timeshare foreclosure, a legal action/lawsuit, or even a monetary judgment against you.
Timeshare purchase agreements are legally binding for the same reason that any contract is legally binding: the law makes them that way. Though laws differ from state to state regarding the requirements, a contract is generally composed of three parts: an offer, an acceptance, and consideration.
In this case, the terms of the written contract are the offer. They tell you what you are getting, the purchase price, and outline the rules of your timeshare ownership. While timeshare developers have a lot of latitude to put all sorts of terms in there, they can’t put in anything blatantly illegal (like forcing you to work for them to pay for your timeshare). In such cases, the contract would be void. Otherwise, the contracts are generally enforceable.
The acceptance of a timeshare contract comes when you sign the papers provided by the timeshare company. Your acceptance is what legally binds you specifically to the contract. Again, this is usually enforceable, except in certain cases. For example, if you were below 18 years old when you signed or were under the influence of mind-altering substances, like alcohol, the contract may be voidable, meaning that you can cancel with a court action if you file suit.
Contracts may also be voidable where timeshare salespeople got you to sign the timeshare agreement by lying to you (also known as fraud). Generally speaking, if you can show that you were the victim of a scam, you may be able to get a lawyer to help you set the contract aside.
The final requirement for a contract is consideration. That is, both you and the timeshare development company have to receive something of value out of the contract. Unfortunately, what you receive (a minor, fleeting vacation ownership interest) pales in comparison to what the developer receives (fees paid by you in perpetuity). The law, however, does not require in most cases that the consideration be equal, only that it exists on both sides.
Apart from requiring the basic elements of offer, acceptance, and consideration, state laws can also give you other ways to end a contract. For example, the timeshare laws of most states allow you to cancel a newly signed contract within a rescission period (also known as a “cooling-off period”). State laws can also provide you with other legal bases for unwinding a contract.
For most of us, understanding the ways that state laws can affect, alter, and end contracts is challenging or impossible without a seasoned professional to help. Centerstone Group can provide help and direction for your situation, from free guidance about the rescission process to a variety of exit services. We can even help you retain a timeshare attorney or law firm to give you legal advice about your options if we deem it necessary for your situation.
Trying to get out of a contract without any support or legal understanding of the consequences can end in disaster. Some other timeshare cancellation companies have incorrectly told owners that they can just stop paying annual maintenance fees, assessments, or mortgage payments.
Failing to live up to the financial obligations of the contract without ending it properly will almost certainly result in a foreclosure, which means that the developer will take your timeshare interest (whether deeded or non-deeded) from you in addition to any outstanding fees and costs you may owe. If you can’t pay up, expect to have a judgment entered against you, which could result in your wages being garnished or liens being placed against your assets.
Even worse, a foreclosure or judgment can have serious consequences on your financial future. Your credit report will take a hit, and your lowered credit score may prevent you from getting financing or loans in the future.
There’s no single answer to this question. It all depends upon your specific circumstances.
Looking at the legal information in stark terms can be discouraging, but it doesn’t have to be. Centerstone Group has helped thousands of timeshare owners just like you achieve legal, ethical, and lasting exits from their contracts.
We have a number of strategies that we use. For example, if you are having a problem with a void or voidable contract, we can assist you in hiring a real estate attorney and getting you a preferred rate for legal fees.
But not all legal problems require lawyers. For example, if you’re a recent purchaser who is still in your state’s rescission period, we can help you craft and deliver a timeshare cancellation letter, forcing the developer to refund all your money. If you’re past that period, we can assist with a timeshare transfer or use our proprietary pressure campaign to get the timeshare company to take your timeshare back.
It can be disheartening to hear the answer “yes” to the question, “Are timeshare contracts enforceable?” But Centerstone Group can be with you every step of the way, guiding you and providing expertise and encouragement when you need it most.
We are the premier timeshare exit company, and we are an accredited, A+-rated company with the Better Business Bureau (BBB). Our customers have given us a 4.78-out-of-5-star rating for our excellent and knowledgeable service. If you’re suffering with your own timeshare property, contact us today for a free consultation and case evaluation.
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