Are Timeshare Contracts Enforceable Under the Law?
Timeshares have been widely sold in the United States since the 1970s, and the challenges associated with them are well-documented. With so many unhappy timeshare owners, you may wonder what keeps this industry going. The answer lies in the timeshare contract: a binding agreement that obligates owners to pay annual fees, special assessments, and other costs for life. Naturally, this raises the question, “Are timeshare contracts enforceable?”
The answer is yes. However, no contract—even the most cleverly written timeshare purchase agreement—is unbreakable. Timeshare agreements must comply with federal and state laws, and understanding these regulations can help you achieve a timeshare contract cancellation.
Timeshare developers don’t make it easy, and even well-informed owners can find themselves overwhelmed. That’s where a professional timeshare exit company like Centerstone Group can help. In this article, we’ll explain the key aspects of timeshare contracts and why expert guidance is critical when seeking to get out of one.
Are Timeshare Contracts Enforceable?
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 can pursue legal remedies against you. These remedies may include timeshare foreclosure, lawsuits, or even monetary judgments.
What Makes a Timeshare Contract Legally Binding?
Timeshare purchase agreements are legally binding for the same reason any contract is: the law requires it. While laws vary by state, a contract generally contains three essential elements: an offer, acceptance, and consideration.
The terms of the written contract constitute the offer, outlining what you are receiving, the purchase price, and the rules of ownership. Developers have latitude in drafting these terms but cannot include anything illegal (for example, forcing you to work for them). If illegal terms are included, the contract is void (source).
Your acceptance occurs when you sign the contract. This is what legally binds you. Exceptions exist, such as if you were under 18 years old or under the influence of substances. In these cases, the contract may be voidable through court action.
Contracts can also be voidable if you were misled or defrauded into signing. If you were a victim of a scam, legal counsel may help you set the contract aside.
The final element, consideration, requires that both parties receive something of value. While the value received by you (vacation usage) may seem minimal compared to what the developer gains (ongoing fees), the law does not require equal value—just that consideration exists on both sides (source).
How State Laws Affect Contract Enforcement
Beyond the basic elements of a contract, state laws may provide additional ways to cancel or modify a contract. Most states allow a rescission period (a “cooling-off” period) to cancel a newly signed timeshare contract. Other state laws may also offer legal avenues to unwind or challenge contracts.
Understanding how state laws interact with your contract can be complex. Centerstone Group can guide you through these processes—from providing free guidance on rescission to offering full timeshare exit services. If necessary, we can also connect you with a timeshare attorney or law firm to provide legal advice tailored to your situation.
What Are the Consequences of Breaching a Timeshare Contract?
Trying to exit a timeshare contract without proper guidance or understanding of the legal consequences can end in disaster. Some timeshare cancellation companies have misled owners into thinking they can simply stop paying maintenance fees, assessments, or mortgage payments.
Failing to meet the financial obligations of your contract without officially ending it will almost certainly result in foreclosure. This means the developer can take your timeshare interest (deeded or non-deeded) along with any outstanding fees or costs. If you are unable to pay, a judgment could be entered against you, potentially leading to wage garnishment or liens on your assets.
Even worse, foreclosure or a judgment can seriously impact your financial future. Your credit report will take a hit, and a lowered credit score may prevent you from securing financing or loans in the future.
What Is the Best Way to Get Out of a Timeshare Contract?
There’s no single answer to this question—it all depends on your specific circumstances.
While the legal realities of timeshare contracts can seem daunting, it doesn’t have to be discouraging. Centerstone Group has helped thousands of timeshare owners achieve legal, ethical, and lasting exits from their contracts.
We have multiple strategies tailored to your situation. For example, if you are dealing with a void or voidable contract, we can connect you with a real estate attorney and even help you secure preferred rates for legal fees.
Not every situation requires a lawyer. For instance, if you recently purchased your timeshare and are still within your state’s rescission period, we can help you draft and deliver a timeshare cancellation letter, ensuring the developer refunds your money. If the rescission period has passed, we can assist with a timeshare transfer or use our proprietary pressure campaign to get the timeshare company to take your timeshare back.
Let Centerstone Group Help You Use the Contract to Your Advantage
It can be disheartening to hear “yes” in response to the question, “Are timeshare contracts enforceable?” But Centerstone Group is here to guide you every step of the way, providing expertise, support, and encouragement when you need it most.
As the premier timeshare exit company, we are an accredited, A+-rated company with the Better Business Bureau (BBB). Our customers have rated us 4.78 out of 5 stars for our excellent and knowledgeable service. If you’re struggling with your timeshare property, contact us today for a free consultation and case evaluation.
Timeshares have been widely sold in the United States since the 1970s, and the challenges associated with them are well-documented. With so many unhappy timeshare owners, you may wonder what keeps this industry going. The answer lies in the timeshare contract: a binding agreement that obligates owners to pay annual fees, special assessments, and other costs for life. Naturally, this raises the question, “Are timeshare contracts enforceable?”
The answer is yes. However, no contract—even the most cleverly written timeshare purchase agreement—is unbreakable. Timeshare agreements must comply with federal and state laws, and understanding these regulations can help you achieve a timeshare contract cancellation.
Timeshare developers don’t make it easy, and even well-informed owners can find themselves overwhelmed. That’s where a professional timeshare exit company like Centerstone Group can help. In this article, we’ll explain the key aspects of timeshare contracts and why expert guidance is critical when seeking to get out of one.
Are Timeshare Contracts Enforceable?
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 can pursue legal remedies against you. These remedies may include timeshare foreclosure, lawsuits, or even monetary judgments.
What Makes a Timeshare Contract Legally Binding?
Timeshare purchase agreements are legally binding for the same reason any contract is: the law requires it. While laws vary by state, a contract generally contains three essential elements: an offer, acceptance, and consideration.
The terms of the written contract constitute the offer, outlining what you are receiving, the purchase price, and the rules of ownership. Developers have latitude in drafting these terms but cannot include anything illegal (for example, forcing you to work for them). If illegal terms are included, the contract is void (source).
Your acceptance occurs when you sign the contract. This is what legally binds you. Exceptions exist, such as if you were under 18 years old or under the influence of substances. In these cases, the contract may be voidable through court action.
Contracts can also be voidable if you were misled or defrauded into signing. If you were a victim of a scam, legal counsel may help you set the contract aside.
The final element, consideration, requires that both parties receive something of value. While the value received by you (vacation usage) may seem minimal compared to what the developer gains (ongoing fees), the law does not require equal value—just that consideration exists on both sides (source).
How State Laws Affect Contract Enforcement
Beyond the basic elements of a contract, state laws may provide additional ways to cancel or modify a contract. Most states allow a rescission period (a “cooling-off” period) to cancel a newly signed timeshare contract. Other state laws may also offer legal avenues to unwind or challenge contracts.
Understanding how state laws interact with your contract can be complex. Centerstone Group can guide you through these processes—from providing free guidance on rescission to offering full timeshare exit services. If necessary, we can also connect you with a timeshare attorney or law firm to provide legal advice tailored to your situation.
What Are the Consequences of Breaching a Timeshare Contract?
Trying to exit a timeshare contract without proper guidance or understanding of the legal consequences can end in disaster. Some timeshare cancellation companies have misled owners into thinking they can simply stop paying maintenance fees, assessments, or mortgage payments.
Failing to meet the financial obligations of your contract without officially ending it will almost certainly result in foreclosure. This means the developer can take your timeshare interest (deeded or non-deeded) along with any outstanding fees or costs. If you are unable to pay, a judgment could be entered against you, potentially leading to wage garnishment or liens on your assets.
Even worse, foreclosure or a judgment can seriously impact your financial future. Your credit report will take a hit, and a lowered credit score may prevent you from securing financing or loans in the future.
What Is the Best Way to Get Out of a Timeshare Contract?
There’s no single answer to this question—it all depends on your specific circumstances.
While the legal realities of timeshare contracts can seem daunting, it doesn’t have to be discouraging. Centerstone Group has helped thousands of timeshare owners achieve legal, ethical, and lasting exits from their contracts.
We have multiple strategies tailored to your situation. For example, if you are dealing with a void or voidable contract, we can connect you with a real estate attorney and even help you secure preferred rates for legal fees.
Not every situation requires a lawyer. For instance, if you recently purchased your timeshare and are still within your state’s rescission period, we can help you draft and deliver a timeshare cancellation letter, ensuring the developer refunds your money. If the rescission period has passed, we can assist with a timeshare transfer or use our proprietary pressure campaign to get the timeshare company to take your timeshare back.
Let Centerstone Group Help You Use the Contract to Your Advantage
It can be disheartening to hear “yes” in response to the question, “Are timeshare contracts enforceable?” But Centerstone Group is here to guide you every step of the way, providing expertise, support, and encouragement when you need it most.
As the premier timeshare exit company, we are an accredited, A+-rated company with the Better Business Bureau (BBB). Our customers have rated us 4.78 out of 5 stars for our excellent and knowledgeable service. If you’re struggling with your timeshare property, contact us today for a free consultation and case evaluation.