How to Cancel a Timeshare Contract and Other Ways to Get Out

Almost everyone who has ever owned a timeshare has found out it costs way more money than the sales presentation promised. Between ever-increasing annual maintenance fees, special assessments, and various other fees, you may soon find that a timeshare just isn’t worth it.

Of course, by the time you discover exactly how much of a money pit it is, you’ve probably also learned the other eternal truth of timeshares: They’re notoriously hard to escape. Tricky contracts, bad-faith tactics by timeshare companies, and a general lack of value combine to make owners feel helpless and strapped for cash.

The good news is there are ways out of your timeshare. In this article, we will take a look at five common methods of escaping the timeshare trap: canceling a timeshare contract (or rescission), listing a timeshare for sale or rent, seeking a deed-back, taking legal action, and using an exit company.

In most cases, you can only cancel timeshare contracts if:

• You recently entered into the contract: The laws of most U.S. states will usually give you around 5–10 days to cancel timeshare contracts for any reason. This is sometimes known as a “cooling off” or rescission period.
• You cancel the contract in a specific way: You can’t just call a timeshare developer and say, “Cancel my contract,” and expect anything to happen. Most of the time, you’ll need to send a timeshare cancellation letter to a specific address in a specific way. If you don’t follow the rules of the contract exactly, your cancellation won’t work.
• You can prove that you followed the rules of the contract: This may be the most crucial point. Even if you do everything right, it won’t mean anything unless you can prove it. That means getting receipts, proof of delivery, and documentation for every step of the cancellation letter process. If you don’t have proof, you may not be able to get out of your timeshare agreement, even if you did everything right.

What Is Each State’s Timeshare Rescission Period?

Each state has its own laws regarding timeshare cancellation. Use the table below to determine the amount of time you have to cancel in each state. Make sure to check the most recent version of a state’s law to confirm the timelines and whether the state measures the cooling-off period in calendar days or business days.

What Are the Steps for Getting a Timeshare Rescission?

It’s possible to draft and successfully send a cancellation letter yourself. Beware, though: Timeshare companies have done a lot more of these than you have, and they will take advantage of any mistake you make.

Here are some basic steps to take:

1. Find and review your contract: Know exactly what it says about cancellation. Follow it to the letter, and make sure the company does as well.
2. Draft the cancellation letter: State clearly that you want to cancel your contract and that you want a refund of all amounts paid. Cite your state’s law that allows your demand.
3. Send the letter to the right address, as dictated by your contract: If there are multiple addresses, you may want to send a letter to each to be safe.
4. Use certified mail, FedEx, or another system that allows third-party tracking and verification of letter delivery: Proving that you sent the letter and that it was received is just as important as writing it.
5. Call and follow-up with the developer daily until you get confirmation of delivery: Make sure you take notes about whom you spoke with and when.
6. Verify that you received a refund of all amounts paid: Make sure they follow-through on completely cancelling the contract and refunding your money.

This is a complex and time-consuming process. Thus, it often makes sense to have the guidance and support of an experienced timeshare exit company. Centerstone Group is intimately familiar with the requirements for rescission and will gladly provide you with complimentary assistance on getting your contract rescinded, if that is possible in your case.

One of the reasons so many people fall for aggressive sales tactics is that salespeople love to tell you that a timeshare is an investment. Perhaps, but it’s always a bad one. The fact is, the vast majority of timeshares lose value and are worth nothing on the resale market.

The internet is filled with stories of timeshare owners who literally can’t give their units away. They often resort to listing their timeshares on eBay or Craigslist for free or nearly free, willing to accept a dollar just for the blessing of getting out from under oppressive timeshare maintenance fees.

Perhaps the timeshare salespeople told you that you can rent your timeshare for extra income. Unfortunately, the ability to rent out a timeshare is, in most cases, a myth that will just cost you more money:

• Some timeshare contracts forbid you from renting the units: This is often because the timeshare developer also rents units at the same property and doesn’t want you competing with its business. Breaking these rules can result in fees, penalties, and even legal trouble. Some contracts may even suspend your right to use the timeshare while still obligating you to pay the normal fees!
• Even if you can rent your timeshare, get ready to pay more fees: Companies that allow you to rent your timeshare will demand their cut. This often comes in the form of something like a guest certificate, which you will have to purchase. Of course, you can pass the cost on to a renter, but that will likely make your rental more expensive than if the renter got their unit directly from the resort. (And of course, that’s the point of this requirement!)

The best of the bad options in this method would be to get an experienced real estate agent who specializes in timeshare sales. Unless you have a very desirable timeshare, though, you’re not going to be able to get anything for your unit. Also, you have to make sure not to get involved with fraudulent timeshare resale companies or similar scams.

(If you’re wondering what “desirable” is, think of a Maui beachfront condo in December. Any less than that, and you’re likely wasting your time and money.)

In some cases, timeshare owners may feel the need to file a lawsuit against a timeshare company. Note that this is an extreme and expensive measure that should only be used in a handful of cases. Some examples where a lawsuit might be appropriate are:

• Fraud: Let’s say a timeshare salesperson tricked you into signing a contract by telling you that it was just a sign-in sheet. That would be a fraudulent inducement and a rescission (contractual unwinding) by a court would be the appropriate remedy.
• Breach of contract by the timeshare company: If the company fails to perform a material (i.e., important) term of your contract, you may be able to get out of it. Note, however, that the breach would have to be material or make your performance of the contract difficult or impossible.

Though it’s possible to file a lawsuit by yourself, you’ll have virtually no chance of succeeding in most cases without legal advice and assistance from a timeshare attorney or law firm. Most of them will charge by the hour, and it can take years and hundreds of thousands of dollars to resolve a lawsuit. Therefore, it’s important to use lawyers and lawsuits as a measure of last resort.

The options to cancel timeshare contracts can seem difficult and depressing. The odds are often stacked against timeshare owners. There is, however, an easier way: hiring an experienced timeshare exit professional to find and execute the best timeshare exit plan for you.

And, if we need to, we can help you get an attorney from our network of trusted legal partners. We can even get you a discount on their hourly rate.

The important thing is this: You don’t have to do it alone. Centerstone Group is an accredited company with the Better Business Bureau (BBB). We also have an A+ rating with the BBB and hundreds of reviews from satisfied customers we’ve helped. Give us the chance to help you too. Contact us today for a free consultation and case evaluation about the right timeshare cancellation process for you.

Can I Cancel If My Contract Is Older Than the Rescission Period?

In most cases, no, you cannot get a cancellation and full refund if the rescission period has passed. However, some state laws provide that the “cancellation clock” doesn’t start running until you receive certain paperwork. If the developer or its salesperson made a mistake, you can exploit that and get your money back! That’s why going over your unique contract and situation with an expert is so important.

Won’t the timeshare company just go away if I stop paying my fees?

No, stopping payment won’t solve your timeshare problem. Always pay your fees and stay as current as possible while trying to exit your timeshare. Some websites might urge you to just stop paying, but that is the wrong move, as it can cause you significant legal trouble and severely damage your credit score. We understand how desperate and hopeless the financial hardship can feel, but a free consultation with our experts will show you that there is always a better way.

What If I Didn’t Buy My Timeshare in the United States?

Centerstone Group can still help you, even if you bought a timeshare outside of the U.S. We’ve helped many owners in Mexico and elsewhere free themselves from their timeshare contracts.