Timeshare ownership is expensive. Most people don’t have the full purchase price in cash, so they have to take out a mortgage after they sign the timeshare contract. On top of those high interest rates, they’re also paying annual maintenance fees, assessments, exchange fees, and so much else that you’re bound to ask, “What is the average cost to cancel a timeshare?”
Rest assured, you’re not alone. Timeshare owners all over the country have the same question. The answer for your particular case, though, depends heavily on a few details. This article will take a look at how those key facts can change the cost of a timeshare cancellation.Â
On the low end, you could be looking at a price tag in the hundreds of dollars. On the high end, though, you might pay over $10,000. We’ll discuss some common scenarios below. If you want a more specific look at your own case, you can always contact Centerstone Group for a free, personalized assessment.
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The least expensive and easiest way to get out of a timeshare purchase agreement is known as rescission, or contract cancellation. This usually involves writing a cancellation letter to your timeshare company and delivering it within a specific time.
Most states have laws for “cooling-off periods” in which you can end a contract shortly after signing it. Your state’s timeshare law might give you a cancellation period of just a few days or as much as over two weeks. So, if you’re going to take advantage of this option, you have to do it quickly.
It may be possible to cancel your timeshare on your own, but you have a short window to do so. Plus, if you make a mistake, you will be saddled with a timeshare you can’t easily get rid of.Â
That is why it can make sense to contact a reputable timeshare exit company to get professional assistance and peace of mind that your cancellation has been done the right way. A successful contract rescission should not cost you more than a few hundred dollars.
Unfortunately, most timeshare owners don’t realize their mistake until after the rescission period is over. If that’s the case, don’t panic. You’re not out of options, but you do have to consider them carefully because some choices are better than others.
A best option — and most likely to be successful — is to enlist the aid of a professional at a timeshare exit company to help you negotiate a timeshare exit. For example, Centerstone Group has a proprietary pressure campaign that it has successfully used to help thousands of owners in exactly this situation. The average cost varies depending on the situation, but generally speaking, this solution will cost a few thousand dollars, but in some situations, it may be even higher.
Failing to pay your timeshare maintenance fees or assessments — or even worse, your timeshare mortgage — could result in disaster. The contract you signed legally obligates you to pay these amounts. Just walking away could severely damage your credit score and result in a foreclosure or even a deficiency judgment against you.
Note that, if you have a low credit score, it will also follow you around and make life difficult in several other ways. Home loans, car loans, and credit cards will all be more difficult to obtain and will cost you more if your application is approved — both upfront in larger required down payments and over time in higher interest rates. Timeshares aren’t even worthwhile for vacations, so they’re definitely not worth ruining your financial future.
Since you can’t just walk away from your timeshare, you may wonder if you can simply give your timeshare back to the resort. While it is sometimes possible, developers don’t make the process easy.
Some of the larger companies (like Marriott and Hilton Grand Vacations Club) have “deed-back programs” set up, claiming that they allow owners to turn over their unwanted units without further obligation for a few thousand dollars.Â
Don’t be deceived, though: You will only get to participate in these programs if your timeshare developer lets you do it. And they can’t let everyone out or else they’d hurt their bottom line. For example, Hilton has a Transitions program that ostensibly lets owners get out of their timeshares. As of July 12, 2024, however, they announced that no more owners will be processed through the program until 2025. The people who were waiting to give back their timeshares, therefore, are just stuck paying fees until next year.
As for selling it, there is no real estate market for these interests, so you’re not going to make money from a timeshare resale. (The number of owners desperately trying to sell their interests on eBay should make that quite clear.)
While it is possible to give (or transfer) your timeshare to someone else, you will again be at the mercy of the timeshare developer. A transfer will only go through if the company allows it to happen. The transfer will also cost thousands of dollars, most of which you will pay to the developer for the privilege of being allowed to transfer.
Sometimes, the actions taken by a timeshare company are so outrageous that the only thing left to do is hire a lawyer and fight the timeshare company in court. This might be the proper solution when timeshare salespeople committed fraud, breached a legal obligation, or otherwise acted in a manner prohibited by the law.
While people may often threaten lawsuits, it’s rare for disputes to go to trial. There’s a good reason for this: Legal fees and costs related to a lawsuit can easily run $10,000 or more for even a very simple lawsuit. More complicated or drawn-out cases can run into the high five figures or even shoot past the $100,000 mark.Â
Many law firms charge by the hour. Legal advice or services can cost $200 or more for an hour of a single lawyer’s time. And, if you lose your case, there is a chance that you will be responsible for paying the timeshare company’s legal fees.
Centerstone Group understands that sometimes a lawsuit is unavoidable, which is why it works with timeshare attorneys and law firms all over the country when necessary. Those relationships also help Centerstone Group’s clients save as much money as possible with discounted rates on legal fees and assistance in pre-litigation arbitration.Â
In the rare event that a mass lawsuit or even a class action is needed, Centerstone Group can also help you coordinate legal matters with attorneys and other timeshare owners.
So, what is the average cost to cancel a timeshare? Again, it depends on the exit strategy you use. Performing a timeshare cancellation with all of the legal protection you will need (e.g., being able to prove that you canceled on time) will probably run at least a few hundred dollars on average and is the cheapest of the options. Transferring your unit, if the company will let you, is the next cheapest and will run into the thousands of dollars.
Meanwhile, negotiating with a timeshare company is more time-consuming, and should not be done without the aid of a qualified professional, like with our proprietary pressure campaign. That could run anywhere between $4,000 and $10,000, depending on the options you need.
Defaulting on your timeshare obligations is not only expensive but extremely risky. It would likely cost more than just trying to negotiate your way out. A legal fight would be the most expensive and risky move by far, as it could cost well into six digits.
But the main takeaway is that whatever you decide to do, you need to work with trustworthy professionals who have the experience to get the job done at the best possible price. Centerstone Group’s professionals have decades of experience in the timeshare industry, as well as a 4.77-out-of-5-star rating with the Better Business Bureau (BBB), which has also rewarded them with an A+ grade.
If you are thinking about spending money to get out of an oppressive timeshare agreement, make sure that you do it right. Contact Centerstone Group today for a free consultation and case evaluation to determine what kind of cancellation service is right for you.
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