Exiting timeshare ownership by yourself is not easy. After a while, many owners begin to think it may be possible to sell their timeshares to people who might be trying to save a bit of money by not purchasing directly from timeshare companies. Buyers of these “used” timeshares should beware, as exiting third-party timeshare sales without expert help could be a legal nightmare.
This article will focus on the exit options for someone who purchased a timeshare from another owner rather than the resort developer. We’ll focus on the legal differences between getting out of a third-party timeshare and one purchased directly from the company as well as the specific challenges of exiting third-party timeshares. We’ll also answer the frequently-asked question of whether a resale timeshare can be returned to the person you purchased it from.
Finally, if you own one of these units and are lost as to the next step of timeshare cancellation, Centerstone Group has a team of experts willing to help you solve your problems. We’ll talk about ways we can help you achieve freedom from your timeshare no matter who the seller was.
Yes, there are big legal differences between buying a timeshare from a developer and buying one from a timeshare owner who originally bought from that developer. These differences stem from the fact that a third-party buyer does not have a direct legal relationship (i.e., a signed contract) with the timeshare company.
The original buyer of the timeshare signed a timeshare purchase agreement with the company that developed the timeshare. This contract sets the rules for paying annual maintenance fees and other costs, what happens if there is a legal problem with the timeshare, and more.
A legal difference — and potentially a legal problem — arises with resale because the new owner of the timeshare did not sign the contract with the developer and, in theory, might not be bound by its terms. This could cause the developer to try and void the sale or even sue you to unwind it. They could also try to force an assignment of the purchase contract to you – meaning that you would be bound by all of its terms.
In both of the above cases, an exit is more complicated because it involves an extra layer of legal difficulty — figuring out who is actually bound by the contract with the timeshare developer.
A note of caution for timeshare owners: You should be aware that the above problems also can arise for people who inherit your timeshare after you pass. Therefore, even if you are an owner who does not plan to sell your timeshare, it is still critical that you consider these issues and the impact they may have on your heirs in the future.
Because of the tricky legal situation presented by a timeshare resale, exiting that timeshare can be more challenging than it would be otherwise. In fact, timeshare companies — which are already famously non-responsive to owners — may be even less responsive to people with whom they don’t have a direct contract.
Though it’s true that some developers have used exit and deed-back programs, many of them (like Wyndham, Hilton, Diamond Resorts, and Bluegreen Resorts) have shut down those programs. Even the developers that still have them are reluctant to use them in the best circumstances and have closed off access to the programs to owners who qualify. They don’t want too many owners getting out of paying their fees, after all.
Now, imagine that someone who bought a unit on the resale market comes along and tries to get an exit. The fact that there is an extra degree of removal from the company will almost certainly be used as an excuse for not cooperating with that owner in the exit process. These problems are much more likely where a timeshare was sold on a platform like eBay or Craigslist without the help of a Realtor.
Suffice it to say, getting out of a timeshare you bought on the resale market requires you to go through another layer of difficulty. Getting through that extra difficulty requires the right experts, which we’ll talk about next.
While the fact that you are trying to get out of a resale timeshare makes things tougher, there are things you can do to make the process easier. The services you need will depend on whether you are seeking them before or after a resale.
The first way to get around the difficulties of buying and selling on the resale market is to avoid them in the first place with some planning and legwork. If you are purchasing a timeshare on the resale market, you should definitely get the advice of a Realtor who is experienced in timeshare resales or a timeshare title company.
With a Realtor’s or title company’s help, you can resolve issues like the timeshare contract ahead of a sale so there are no legal surprises later. That will also help you in the future, if and when you are trying to exit your timeshare. While a timeshare Realtor will typically charge a higher fee than others (10% or more), the cost is worth it to make sure things are done right.
Make sure that the person helping you is a licensed Realtor or title company, not a so-called “timeshare resale company.” These third-party companies, which are often a front for scams, take large upfront fees and often do not do the job they promised. For more information on these scams, you can research the matter with your state’s attorney general.
If you already have a resale timeshare and need solid exit services, your best option is to go with a trusted and reputable third-party exit company like Centerstone Group, which uses a negotiation and a variety of exit programs to help its clients get out of their timeshares.
In the case of a resale timeshare, the only viable option is our transfer program, which pairs timeshare owners with people who are willing to take the timeshare and the obligations that come with them. Our program also gets the timeshare out of your family, so you don’t have to pass the problems on to your loved ones. We have the expertise to help you move timeshares in the right way, with the proper steps.
Keep in mind that just having an expert on your side doesn’t always make the process super fast. It can still take months to finalize your exit. But a good timeshare cancellation company will make it easier and give you the finality that you need.
In most cases, no, a resale timeshare can’t be returned to the seller. While most states have laws regarding timeshare sales and rescission of purchase contracts, those laws do not apply to real estate sales between private parties where neither of them is a timeshare developer. Because of that distinction, you don’t have the same rescission rights with a resale as you would have buying directly from the developer.
It is possible, however, to have a sales contract that allows for a buy-back under certain circumstances. If that option is something you need, consultation with a Realtor or timeshare attorney would be wise.
In the event of fraud or another illegal activity by the seller, you may also be able to get the sale reversed or rescinded, but that would likely require a court order and the services of an attorney.
These situations underscore the need for a Realtor and appropriate professionals to be involved before a purchase rather than after.
Exiting a timeshare in any circumstances is tricky, but exiting third-party timeshares is especially hard. Centerstone Group’s team has decades of experience in the timeshare industry, so we can help you determine the best and fastest way forward to your desired exit.
Hiring a timeshare exit company is a big decision, and we urge you to shop around for the best option. You will find, however, that we are an accredited company with the Better Business Bureau (BBB) with an A+ rating and a customer review average of 4.77-out-of-5 stars. If you need to get out of your third-party timeshare, contact us today for a free consultation and case evaluation.
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